Surprise generation ‘not confident’ they can retire

Do you feel confident you’ll be able to retire with enough money? Many Aussies aren’t.

·2-min read
A composite image of money and an elderly couple to represent retirement.
Older Aussies are not feeling confident they can retire. (Source: AAP / Getty)

For 30 years now Aussies have had to make compulsory retirement contributions, but that hasn’t done enough for everyone to feel confident about their future.

A worrying majority of Australians (two in three) feared they would not have sufficient financial resources to retire, new research from Findex found.

The research from YouGov, commissioned by Findex, explored Australians’ preparedness for retirement and how professional financial advice factored into this. The survey of more than 1,000 participants focused on those in the early planning stages of retirement to those in the process of retiring across metro and regional areas.

Older Aussies less prepared

With the cost of living rising, Aussies closer to retirement age were feeling the least confident, the research found.

The majority (52 per cent) of Baby Boomers and 38 per cent of Gen X noted they were “not confident” of having the money needed to retire compared to 31 per cent of Millennials.

“This paints the picture that most Aussies have adopted a ‘kick it down the road’ mentality to retirement,” Findex Co-CEO Matt Games said.

“But when the time eventually comes, they’re faced with the reality that their existing savings and superannuation balance are insufficient in this economic climate.”

How much do I need to retire?

According to the Association of Superannuation Funds of Australia Retirement Standard a retiree today needs upwards of $500,000 in their super balance.

This sits well above the national average of$356,000 and $288,000 respectively for men and women in their early 60s.

Findex’s research also revealed one in two Aussies didn’t believe they had a good understanding of the financial resources needed for a comfortable retirement.

Gender disparity was additionally apparent in financial literacy where women were more likely to report their financial understanding as ‘poor’ (27 per cent) compared to their male counterparts (15 per cent).

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