Australia’s baby boomers are expecting to work even later to fund their retirements, according to a new study of residents aged 45 or older conducted by the Australian Bureau of Statistics (ABS). The data found 71 percent of Australians surveyed plan to retire at the age of 65 or later. That’s up from 66 percent two years ago and 23 percent in the 2004-2005 financial year. Nearly a quarter of the participants said they’ll retire at 70.
A desire for greater financial security was behind the decision for 40 percent of men and 35 percent of women. Nearly a quarter of men and women also said they felt that’s when personal health or physical abilities may get in the way of earning an income.
The results come just months after the government announced Australians will need to be 67, rather than 65, to qualify for the Age Pension. Perhaps because of this change, fewer people are expecting to rely on a government pension or allowance in their golden years.
“While 47 per cent of persons aged 45 and over who had retired reported a government pension or allowance as their main source of income at retirement, only 27 per cent of persons aged 45 and over who were intending to retire indicated this would be their main expected source of income,” Jennifer Humphrys, an ABS spokesperson, told Money Management magazine.
Just over half of the respondents expected to draw the bulk of their retirement income from superannuation, annuity, or allocated income.
How will you generate an income when you retire? And when will you say farewell to the workforce for good? It’s never too early to start thinking about the answers to these questions and assessing whether you’ll have the means to fund the retirement you’ve always dreamed of. Call Chase Edwards on 1300 854 833 to organise an appointment with our retirement forecasting experts now to secure your financial future.