The concerning reality of Aussie’s retirement finances
It’s no secret that the cost of living crisis has hit the pockets of many Australians, jeopardising the chances of a comfortable retirement.
Now, a concerning new survey has highlighted the financial concerns of many Aussies when it comes to retiring, with 60 percent of people admitting they won’t have enough cash and superannuation money to fund their retirement.
In addition to this, 31 percent of respondents expect to carry debts into their retirement, with 73 percent of people expecting to receive pension payments at some point.
The survey was commissioned by money.com.au, and questioned an independent panel of 573 Australians aged 35-60 years about their financial concerns.
The survey also asked how much money respondents think they need to get through their retirement years.
More than half (57 percent) believe they will need more than $60,000 per year, while a third (35 percent) expect to need more than $80,000 per year.
These income expectations are well above The Association of Superannuation Funds of Australia’s (ASFA) Retirement Standard, which estimated for the June quarter that singles living a comfortable retirement will spend $47,383 per year, while retired couples will spend $66,725 per year.
Licensed financial adviser and Money.com.au spokesperson Helen Baker says, “While the Retirement Standard increased these figures by around 2 percent in the June quarter, the income levels that more than half of retirees expect to live on are still at least 27 percent higher. The Retirement Standard also assumes people don’t carry debts into their retirement, which many survey respondents have likely considered when answering this survey question.”
“Respondents have lived through several months of fast-rising inflation and interest rates, which is forcing them to factor price and loan repayment increases into their retirement preparedness and income expectations.”
She went on to say, “I urge individuals to implement a financial plan as soon as possible to manage debts, savings and super. Some individuals may plan to sell their property once they exhaust their funds, with the view to downsizing or renting and using the cash to live out the rest of their retirement.”
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