Large numbers of Australians aged 45 and over are anxious about their retirement and finances, as well as the possibility of working longer, an industry fund has found, noting they should seek advice as soon as practicable.
The Aware Super “State of Retirement Report” found 63 per cent of Australians over 45 worried about retirement and nearly nine in 10 feared they would run out of money.
The research carried out by Lonergan Research surveyed 1051 Australians in December 2024 and showed one in 10 retired later than expected, with 55 per cent citing it took place due to financial necessity.
Additionally, one in five retirees returned to full or part-time work, with 25 per cent doing so for financial reasons.
Aware Super chief executive Deanne Stewart said the research emphasised many people did not understand their options and how to make the most of their superannuation in retirement, and felt uncertain about the future.
“What’s great is that there is a growing understanding about how super can work for you, for example, most people over 45 now realise that when you retire as much as half of your super balance is made up of investment returns,” Stewart said.
“But there are clearly still big gaps in knowledge and getting advice at the right time makes an enormous difference.”
With nearly one-third unaware of super’s tax-free potential, she noted the importance of financial advice.
“One thing that most people don’t know is you can turn to your super provider to help you really map out how you want to live in retirement,” she stated.
“If you haven’t had a chat with your superannuation fund about planning for retirement, now is the time – no matter what age or life stage you’re at.
“Our research shows ‘not knowing’ your options could cost retirees thousands of dollars over the course of their retirement.”