Retirement
Retirement income worries are rife
More than half (53 per cent) of Australian seniors are worried they’ll outlive their savings and investments, a new report has revealed.
Retirement income worries are rife
More than half (53 per cent) of Australian seniors are worried they’ll outlive their savings and investments, a new report has revealed.
Research from National Seniors Australia also found that an even higher proportion (two-thirds) of retirees actually expect to outlive their savings within the next 20 years, whether or not they are worried about it.
The report also revealed that higher levels of worry around retirement savings were prevalent among younger people who are not yet retired, which the association attributed to individuals adjusting to their “actual” circumstances in retirement, whether they had forward-planned or not.
For the association’s CEO, professor John McCallum, the findings illustrate the extent of concern felt by older Australians with regard to financial security.
“Australia has one of the best pension systems in the world, yet Australian retirees are still showing high levels of worry that they will outlive their savings,” he commented.
“This shows a need for better advice and education to help older Australians manage their savings so they can have the confidence to spend their money and enjoy retirement.”
Despite this, the research did find that having a reliable source of income that will last for life is a key factor for worrying less.
Australians without any superannuation were the most likely to worry frequently, and were most likely to be on the Age Pension.
According to National Seniors Australia, those people with a defined-benefit pension or a lifetime annuity reported the lowest levels of worry.
It was also notable that the group of people living on dividends, rent or business income also expressed they were relatively unconcerned about their finances.
“These people are likely to have more wealth and be in a better financial position than most retirees,” the report read, pointing out a need for better financial products to be available for people who are commencing their retirement.
Superannuation
Individuals who do rely on superannuation as their main source of current or future income in retirement worry less than retirees who rely on the Age Pension as their main source of income, the report outlined.
Highlighting the “not fully mature” nature of the super system in Australia, it was outlined that most current retirees “weren’t required to make superannuation contributions for a large part of their working career”.
Despite this, the results showed “it is clear that superannuation is not only providing a reliable source of income in retirement, but it is also reducing financial worries for many retirees”.
According to the National Seniors Association, this should improve as the system continues to mature.
About the author
About the author
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more