A new report from Roy Morgan Research has confirmed what many financial experts already suspected: most Australians aren’t thinking about their retirement savings until it’s too late.
The research found more than 70 percent of young Australians, aged 21 or under, felt retirement was too far away to plan for. Between the ages of 22 and 24 more Australians start considering the future, although only 43.3 percent believe they should start thinking about their retirement savings.
Most concerning is the continued cavalier attitude of aging Australians. Roughly a third of 35- to 39-year-olds still felt retirement was too far away to plan for. And more than 16 percent of people aged 50 to 54 years still felt retirement was a concern for the distant future, despite this time being critical for retirement planning.
Norman Morris, the industry communications director of Roy Morgan Research, suggests the superannuation industry and the government should promote the benefits of financial planning and preparing for the future.
“Frequent changes or speculation of changes to the rules governing superannuation do not instil confidence in what for most people is a 40-plus year time frame,” he told Money Management magazine. “There is also a need to improve people’s understanding of superannuation: from its terminology, adequacy and advantages, to its fees and financial advice,” he said.
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