Get­ting harder to re­tire

NT News - Real Estate - - Market Place - AN­THONY KEANE

GEN­ER­A­TION X wants to re­tire at 63 but be­lieve they will need to work al­most a decade longer to be able to af­ford it.

Re­search by ING has found that Gen X – those aged 39 to 53 – be­lieve they will need an av­er­age $1.5 mil­lion nest egg.

How­ever, they don’t be­lieve they will reach that fi­nan­cial mile­stone un­til age 72, and more than half are yet to start plan­ning for re­tire­ment. Gen­er­a­tion Y – aged 24 to 38 – want to re­tire at 61, be­lieve they will need more money – $1.74 mil­lion – and won’t have that un­til age 68, the re­search found.

ING head of re­tail bank­ing Me­lanie Evans said the find­ings sug­gested a lack of knowl­edge about su­per­an­nu­a­tion and re­tire­ment among peo­ple un­der 50. Some were un­sure where to start, oth­ers fo­cused more on mort­gages and short-term liv­ing ex­penses, and many wanted to main­tain or im­prove their life­styles when they re­tired “and know that comes at a higher cost”.

“Many of them haven’t sat down and worked out a plan so they’re just mak­ing as­sump­tions,” she said. Ms Evans said it was never too early to start re­tire­ment plan­ning, and get­ting ad­vice was im­por­tant.

“Start see­ing su­per as your money,” she said. “It’s nearly one in 10 dol­lars you earn.

“Track it as you would a sav­ings ac­count or mort­gage.”

The re­search in­volv­ing 2000 peo­ple also found Baby Boomers were more likely than younger gen­er­a­tions to spend their chil­dren’s in­her­i­tance.

“As the first gen­er­a­tion with su­per­an­nu­a­tion earn­ings for a large por­tion of their work­ing life, they also feel as though they’ve earned it and it’s theirs to en­joy,” Ms Evans said.

Pivot Wealth founder and fi­nan­cial ad­viser Ben Nash said young gen­er­a­tions had high as­pi­ra­tions for re­tire­ment and did not feel that the pen­sion would be enough. The age pen­sion pays a max­i­mum of $907.60 a fort­night and for Gen­er­a­tion X and younger can­not be claimed un­til 67.

Gen­er­a­tion X wants to re­tire – but they may be in the work­force longer than they’d like

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.