Superannuation has been rated as the top source of income by nearly three-quarters of retirees, while home ownership has been ranked as the most important for financially security, according to new research released by Challenger and National Seniors Australia (NSA).
The research, drawn from the survey responses of 2888 Australians aged over 50 gathered in February by NSA, found superannuation was the leading source of retirement income for 70 per cent of retirees, with 10 per cent of respondents relying on super alone.
The survey also found 11 per cent of retirees named property as a source of retirement income, while 35 per cent generate income from shares.
Challenger head of retirement income research Aaron Minney said: “The good news is that most retirees report having savings for retirement, including 82 per cent of women and 88 per cent of men.
“Just 10 per cent of retirees are relying on the age pension alone. This strongly indicates that the Australian super system is supporting retirees to enjoy a better lifestyle in retirement.”
NSA chief executive Professor John McCallum said the issue of superannuation and savings was raised during the recent election campaign alongside the importance of home ownership, with the latter ranked higher than savings in regards to providing financial security in retirement.
“Owning your own home, having super and private savings are the major items for retirement planning for people of all ages,” McCallum said.
For retirees aged 60 to 69, 71 per cent reported satisfaction with their financial security, compared to 80 per cent of those aged over 80.
These levels of satisfaction correlated with outright home ownership, which was at 81 per cent for the 60 to 69 age group and increased to over 91 per cent for retirees over 80.
Minney said higher levels of savings and investments did not translate to financial security and were reflective of the current economic environment.
“With rising inflation and uncertainty from ongoing share market volatility, retirees who don’t own their own home are feeling nervous about their financial security, regardless of how much they hold in other savings and investments,” he said.
“For many retirees, owning their home outright represents stability alleviating them from the stress of rising interest rates and rental market uncertainty. But the one in seven either renting or paying off a mortgage might be feeling less confident about spending their savings.”
