The Australian Retirement Vision Survey released recently shows most Australians have unrealistic expectations of retirement.
More than two-thirds of the 45- to 60-year-old Australians surveyed believe their lifestyle will remain the same after they retire. Just a quarter of those surveyed were worried about a decline in their living standards.
When asked what income they believed they’d need to maintain their current lifestyle in retirement, the median figure suggested was 28 percent higher than the recommended income for a comfortable retirement and twice the minimum for a modest retirement.
“That suggests that many investors may risk being unnecessarily discouraged by high income expectations, and would benefit from professional advice in setting more realistic retirement income targets,” the study said.
The study also found people who received financial advice were significantly more likely to prepare for their retirement, and also more confident about achieving their long-term financial goals. These people tended to have clearer objectives for their retirement savings and to make extra contributions to their superannuation.
The report also outlined the positive effect of financial advice on retirees. More than 29 percent of retirees who’d received financial advice said their living standards improved since leaving the workforce, compared to just 21.7 percent of retirees who didn’t seek financial advice.
When asked to name their greatest concern about their retirement savings, two in five Australians said they were worried about changes to superannuation laws. This concern points to the importance of building up savings and investments outside superannuation.
Whether you fear you don’t have a realistic picture of your retirement requirements or you want to boost your wealth to prepare for the future, Chase Edwards can help. Contact us today to learn more about our financial services.