Retirement
What are self-funded retirees most worried about in 2020?
The national economy, the value of investments and the ability to manage long-term finances are top of mind of self-funded retirees reeling from the effects of a worldwide economic slump.
What are self-funded retirees most worried about in 2020?
The national economy, the value of investments and the ability to manage long-term finances are top of mind of self-funded retirees reeling from the effects of a worldwide economic slump.
New research from National Seniors Australia (NSA) has revealed that financial concerns are weighing heavily on the minds of self-funded retirees, with emotional themes including feeling of invisibility, vulnerability, insecurity, worry and fear all registered as retiree responses.
In a survey of more than 500 self-funded retirees, the research showed more than three-quarters of the demographic (77 per cent) have concerns about the value of their investments, while 57 per cent have expressed concern about their ability to manage money long-term.
It pales in comparison to the number who expressed worry about the nation’s economy – with 86 per cent indicating that as a concern for self-funded retirees.
“These issues clearly underpin the concerns surrounding stability of retirement incomes based on accumulated funds and assets,” the report read.
Even those older Australians who had stable circumstances prior to the pandemic “are now exhibiting major fears”, NSA highlighted.
And these fears are, unfortunately well placed, with the highlighting of a number of negative financial trends, including: “The collapse and prolonged instability of the stock market; negative to zero returns on Super Guarantee (SG) balances; savings interest rates tracking downwards with the cash rate of 0.25 per cent; cuts to bank dividend; superannuation drawdowns; increased unemployment and even less job opportunities for older workers; slowing or cessation of business income, decreasing home ownership and loss of rental income; and disproportionately high deeming rates.”
As a result, older Australians are exhibiting lower and less stable income, which NSA says is likely to continue for as long as the national deficit is growing and financial and stock markets remain unstable.
It means “self-funded retirees found themselves among groups impacted by COVID like small-business owners and casual workers, but with less time and capacity to improve their circumstances in the future”.
It argued that the distress that is being felt by Australians “who aspire to be independent of government support must be acknowledged and attended to”.
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