Australian pre-retirees are less confident than their global peers in their ability to retire at a desired age and for their retirement savings to be sufficient over the long term, according to a survey by a global fund manager.
The survey of 4000 people, including 1000 Australians who contribute to a super fund, conducted by MFS Investment Management also found that while some Australians remained confident their retirement savings will support a comfortable lifestyle, many pre-retiree attitudes have been significantly impacted by COVID-19.
The MFS Global Defined Contribution Participant Survey revealed 71 per cent of Australian retirement savers believed they could retire at the desired age, but only 68 per cent agreed their retirement savings would last long enough.
The attitudes were the least optimistic when compared to respondents in the United States, Canada and the United Kingdom, where respondents were more confident in realising their desired retirement age and income adequacy throughout retirement: US – 84 per cent and 82 per cent, Canada – 84 per cent and 77 per cent, and UK – 76 per cent and 78 per cent.
Despite these statistics, those under 45 in Australia shared sentiments with their global peers about the need to save more and work longer than planned due to COVID-19, with 64 per cent stating they will need to save more for retirement and 58 per cent saying they needed to work longer before retiring.
MFS Investment Management senior managing director and head of Australia and New Zealand Marian Poirier said the survey highlighted the growing effects of the coronavirus pandemic on retirement attitudes.
“Retirement age and income adequacy remain ongoing and highly complex discussions for Australia’s wealth industry, perhaps more so given the retirement investing psyche clearly appears quite sensitive and risk averse at present relative to other markets,” Poirier said.
“The shock and persisting uncertainty caused by the pandemic has undoubtedly left an indelible mark on younger retirement investors, and their concerns need to be properly addressed for them to get back on track, with a deeper appreciation that uncertainty and opportunity are often key to long-term investing.”
The survey had more than 4000 respondents, with 1020 from the US, 1012 from Canada, 1017 from the UK and 1011 from Australia, and was conducted between March 31 and April 13.
