Retirement
1 in 2 Aussie retirees now expect their savings to outlast them
Those nearing retirement are starting to ask the right questions.
1 in 2 Aussie retirees now expect their savings to outlast them
As more and more Aussies approach retirement, they’re growing in both their optimism and engagement on the topic.
According to Investment Trends’ 2021 Retirement Income Report, the majority of Australians over the age of 40 are ready for retirement.
What’s more, Investment Trends associate research director Kurt Mayell said that pre-retirees now expect their savings to last seven years longer than they did a year ago.
“For the first time in five years, one in two retirees expects their retirement savings will outlast their years in retirement,” he said.
The report broadly found that optimism among the yet-to-retire has grown, with 16 per cent claiming to be well prepared while 45 per cent described themselves as ‘somewhat prepared’.
The report also noted an increase in concern among pre-retirees regarding recent regulatory changes.
“We are seeing the prospect of regulatory changes impacting peace of mind for many Australians either heading towards or in retirement,” Mr Mayell said.
Whilst illness remained the most pressing concern for many pre-retirees, the number of them worried about new regulatory changes doubled from 19 per cent to 41 per cent over the last year.
Investment Trends found that one in two Australians aged over 40 enquired about estate planning over the past 12 months, with those who do not yet have such a plan welcoming information about superannuation death benefits and wealth preservation.
“With an improved retirement outlook more Australians say they would eventually like to leave the balance of their super to their heirs, welcoming increased estate planning advice and content,” Mr Mayell said.
Eighty per cent of those surveyed said that the main asset they’d be passing on to their family would be a home, while 53 per cent saw their super fund as their biggest contribution in the event of their death.
Mr Mayell said that the discussion around the development of the Retirement Income Covenant couldn’t have come at a better time.
While the data suggested that the overall sentiment around retirement among Australians is positive, he said that many consumers are either unaware of or unconvinced by the retirement income products offered by their current super fund.
When the retirement income covenant comes into effect from 1 July 2022, it will codify new obligations for superannuation trustees when it comes to how they handle members approaching retirement.
“There are enormous opportunities for super funds to provide clarity about the pension products and strategies they offer,” he said.
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