The research, conducted in partnership with Challenger, Australia's largest retirement income provider, surveyed approximately 1,000 Challenger customers aged over 60.
Key findings from the study include:
- Two-thirds of respondents proactively chose to enter retirement, citing financial stability, enjoying retirement while health allowed, and eligibility to access superannuation as main factors.
- Respondents who proactively chose to retire reported significantly fewer worries (51%) compared to those who retired out of necessity (32%).
- Over 50% of respondents noted 'enjoyment' as their key purpose in retirement, followed by 'keeping well' (22%).
Lead researcher Professor Joanne Earl said, "Proactively choosing how and when to retire may be the secret ingredients to wellbeing in our golden years."
The study also found that retirees with a guaranteed income outperformed on every happiness metric compared to Challenger's earlier Retirement Happiness Index Research.
Challenger Chief Executive, Customer, Mandy Mannix stated, "The data clearly indicates that annuities, or some element of guaranteed regular income in retirement can be a gamechanger."
With 10% of Australia's population set to retire in the coming decade, the study highlights the importance of guaranteed and longevity-focused retirement income strategies.
The research contrasts with broader Australian population trends, where retirement is often triggered by factors such as reaching retirement age, illness, or unemployment.
This Australian-first study provides valuable insights for both retirees and the industry on the role and importance of guaranteed income streams in retirement planning.
