Many Australians Approaching Retirement Unprepared

By: ce | 24 Jul 2017

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Are you making plans for your retirement? If you’ve been dragging your feet putting a retirement strategy in place, you’re not alone. A new study from Australian Unity has revealed 77 percent of Australians aged 45 to 64 and 47 percent of Australians aged 65 to 84 aren’t planning or being proactive about preparing for their retirements. These frightening results come despite 85 percent of the 1,000 Aussies surveyed admitting they feel uncomfortable with their financial situations.

“Worryingly, the data shows more than three-quarters of 45 to 64-year-olds are running blind,” David Bryant, the chief executive of Australian Unity Wealth, told Money Management. “They’re neglecting to get advice, not proactive about planning, and a good majority have no idea about the recent government changes.”

The Australian Unity study also found that 58 percent of pre-retirees had insufficient funds in their superannuation accounts and would need to rely on the Age Pension to survive.

Not that those surveyed seemed too worried about that. Just 30 percent of the pre-retirees surveyed said they were making payments above their employer’s compulsory contributions to their superannuation accounts. Forty-seven percent of the Australians surveyed also didn’t have any investments, aside from their super, that they could rely upon in their old age either.

Australian Unity also spoke to retirees, who had some words of wisdom to pass on to other Australians yet to leave the workforce. They said finding a trustworthy financial planner is crucial for generating the savings needed for a comfortable retirement. They also encouraged Australians to pay down their debts, including credit card balances and mortgages, as quickly as possible. As income can easily be wasted, the retirees urged other Australians to review their spending habits regularly.

As retirement looms, the prospect of planning for your golden years can become even more daunting. At Chase Edwards, we understand how intimidating retirement planning can be. That’s why you need an experienced financial expert by your side. Call us on 1300 854 833 to arrange your free, no-obligation financial health check, the first step towards getting your retirement savings in order. It’s never too late, or too early, to start planning for your retirement.

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