A recent study has revealed most retirees and pre-retirees believe the age pension is inadequate to meet their retirement needs, leading many to consider working for longer, while being open to using guaranteed income solutions.
The study, “How Do We Make Retirements More Epic?”, conducted by Allianz Retire+ in collaboration with retirement educator Bec Wilson, found 82 per cent of respondents felt the age pension was inadequate, with 28 per cent fairly certain they would work past the traditional retirement age.
Additionally, 39 per cent indicated they would be open to working during this stage of life.
Less than a quarter of respondents (24 per cent) believed they had sufficient income to last throughout their retirement, while 28 per cent admitted they had not yet developed a retirement plan tailored to their specific life expectancy.
“This desire to continue some form of work signals a massive step change for retirement. It is no longer a line in the sand in an individual’s working life,” Allianz Australia Life Insurance chief executive Adrian Stewart noted.
“It’s not news that Australians are living longer, healthier lives and that today’s retirees typically enjoy a more active lifestyle than previous generations.
“These gains in quality and quantity of life come with an implied financial cost, one that requires retirees to stretch their savings over multi-decade timeframes that will include unpredictable market conditions, such as those experienced recently, and personal challenges.”
The study also found significant demand for products offering a guaranteed income, with over 75 per cent of respondents expressing interest in taking up these income streams as a source of retirement funding.
While 49 per cent of respondents were aware of lifetime income streams, they lacked detailed knowledge about them, yet a majority of respondents (71 per cent) expressed an interest in learning more about these products.
“Australians are looking to embrace a second act that could span 25 years or more, but many don’t feel financially prepared to navigate the transition,” Wilson noted.
“Our research indicates a strong desire for education and advice to help achieve retirement goals and alleviate concerns about running out of money.”
The research was based on a survey of 827 superannuants and post-retirees from the Epic Retirement community, which is managed by Wilson. The sample comprised 43 per cent males and 57 per cent females, with 71 per cent planning for retirement as a couple.
