Retirees are running out of superannuation
MANY cash-poor retirees have already run out of retirement savings and others fear they will not have enough money to live comfortably once they stop work.
Alarmingly, statistics in the new National Seniors Australia report, Once bitten twice shy: GFC concerns linger for Australian seniors, found almost a third of Australians 80 and over admit they have depleted all their savings.
And a quarter of those between 75 and 79 also said they, too, had no money left.
National Seniors interim chief executive John McCallum said Australians were under increasing cost of living pressures and as many lived longer they were worried they would not have enough money to survive.
“They are under pressures to maintain a lifestyle during retirement that is at least satisfactory to the way they were living,’’ Professor McCallum said. “Most of all they are under pressure to have enough money there.”
The report delved into the finances of 5400 Australians aged 50 and above, and revealed many were nervous about what the future held.
About 72 per cent fear another global financial crisis could strike and hit savings.
Investment management company Challenger’s head of retirement income research, Aaron Minney, said as Austra- lians lived longer it meant they were having to have more money saved to live comfortably once they stop work.
“The people who are younger and have super built up have a better chance of getting through,’’ Mr Minney said.
“For retirees, most weren’t in super for long enough and they were starting right behind the eight ball.”
He urges people who have more time to retirement to “save a bit more”.
Prof McCallum urged Australians to start planning their retirement as early as possible to “relieve a lot of stress” and avoid being caught short.