Aussies in unfit state to retire
Two out of three Australians are concerned they will not have enough money to retire comfortably, and the older they get the more they worry.
New research commissioned by advice and accounting group Findex has found people adopt a “kick it down the road” mentality towards retirement, and only 5 per cent of Baby Boomers are very confident they have the financial res o u r c e s needed.
More than three times as many generation Xers have the same level of confidence, while for Millennials the figure is 22 per cent.
Findex CO-CEO Matthew Games said it signalled that people operated under the assumption that their super and savings would be sufficient when the time came to retire.
“But as they eventually get closer to the retirement stage of life and have to meaningfully address the monetary aspect of this, the reality sets in and are faced with realisation that they are actually not set up sufficiently,” he said.
Mr Games said advisers could help people improve their financial literacy and confidence.
“Our advisers often talk to clients about investing a day in yourself,” he said.
“Take an annual leave day and spend it talking to your bank, your gas, electricity and internet provider. Review all your monthly expenses and look for a better deal.”
Separate research by Equip Super, which manages $30bn of people’s savings, found more than 40 per cent of its pre-retiree members had no plans in place for their retirement.
It found almost one-third felt they were not able to control when they could begin winding down from work.