Nearly eight out of ten new and potential financial advice clients underestimate how much they’ll need in retirement savings, according to the de Vere Group.
The international financial advisory group studied more than 600 new and potential clients, revealing what company chief executive Nigel Green called a “black hole in the detail” of what’s needed for a comfortable retirement.
“They know that the [Australian] Government won’t be able to support them as it has done for generations before due to an ageing population and shrinking workforce; that living, health and care costs will increase significantly… meaning that accumulated funds need to go further,” he told Money Management magazine. However, what is alarming is that the vast majority do not know just how much they will need to save.
Mr Green explained that new clients are “typically shocked” when they are told how much they need to put away to achieve their retirement goals. Most have “considerably underestimated” the funds they’ll need in their golden years.
Mr Green suggests that people who don’t currently receive financial advice should “take their heads out of the sand and get informed,” adding that it’s much better to be informed and start saving the required amount for a comfortable retirement than to remain oblivious and be unprepared for old age.
At Chase Edwards, we couldn’t agree with Mr Green’s sentiments more. If you’re not currently receiving financial advice we invite you to take up our offer of a free financial health check. Our money experts will provide an honest appraisal of your finances so you can learn what you need to do to achieve the retirement you deserve. Contact us on 1300 854 833 to organise this complimentary service.