Just one in four Australians believe they will be able to live comfortably in retirement despite more people feeling better prepared for retirement, according to Investment Trends.
The research firm’s latest “Retirement Income Report” revealed 46 per cent of Australians over the age of 40 felt prepared for their retirement, up from 44 per cent in 2016.
“Fewer Australians are worried about external factors such as market performance and regulatory changes eroding their super savings compared to 2016, and this has led to more individuals feeling equipped to face retirement,” Investment Trends senior analyst King Loong Choi said today.
However, Choi said retirement remained a concern for many.
“Many Australians are concerned they will not be able to reach their retirement goals and only one in three believe they can do so without the help of professional assistance,” he said.
The research also highlighted the roles superannuation funds and financial planners played in assisting Australians with their retirement goals. When seeking help, 33 per cent of respondents said they turned to a financial planner, while 25 per cent sought help from superannuation funds.
Individuals with super balances less than $100,000 were just as likely to turn to planners as they were to turn to superannuation funds. However, those with balances exceeding $100,000 were more likely to turn to financial planners.
Retirees fell into three lifestyle segments, each with their own post-retirement support needs: active retirees were those in good health, semi-active individuals were those in decent health but who needed some assistance, and dependent retirees were those in poor health requiring assistance.
While active retirees were most likely to worry about retirement savings adequacy, dependent retirees would most likely seek information about the financial considerations of aged care, Choi said.