Retirement, Superannuation

Inflation pushing retirees to work longer

Inflation Cost-of-living Retirement

Retirees are choosing to stay in the workforce longer and postpone their retirement plans due to record rises in cost-of-living expenses.

More Australians are working longer and delaying their retirement until their 70s to manage inflation and continued increases in living costs, according to an Equip Super survey.

The analysis found one-quarter (26 per cent) of those surveyed expected to retire at 65, while those who did not see themselves retiring at that age were delaying such a move by six years on average.

For those who responded they were likely to delay their retirement, 39 per cent indicated increases in the cost of everyday essentials and inflation were the main reasons for doing so.

Additionally, covering everyday living expenses was the most important financial priority for those who were surveyed followed by building savings and making mortgage repayments.

Precisely three-quarters of those surveyed (75 per cent) believed superannuation was an important part of securing their financial future, while 85 per cent were more cautious about their spending habits and cutting personal expenses.

Commenting on the results of the survey, Equip Super head of advice Paul Stocker acknowledged the current economic climate was changing retirement plans for many and urged individuals to seek professional advice to improve their outcomes.

“Coping with the escalating cost of living is a shared concern for many Australians. We understand the financial difficulties that people encounter while planning for retirement and we sympathise with those who are delaying retirement,” Stocker said.

“In times like these, it’s essential to have a solid financial plan in place and managing your super is a crucial aspect of that plan. If people take the right steps today, they should not have to work longer than they want to.

“By adopting strategic planning efforts, we want to help Australians retire when they choose to, rather than when they are forced to.”

The survey gathered the responses of more than 2000 people selected randomly from around Australia.

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