The latest global research into the older demographic of people has shown nearly 34 per cent of individuals expect to work at least part-time after reaching retirement age.
T Rowe Price’s inaugural “Global Retirement Savers Study” found retirement confidence is low worldwide, with only 31 per cent of participants saying they expected to live as well or better than they did when they were working. This pessimistic attitude was most pronounced in Australia with 23 per cent agreeing with that statement.
The confidence gap between men and women in Australia was also large, with 31 per cent of men reporting high confidence in maintaining their pre-retirement lifestyle and only 15 per cent of women feeling the same.
“Longer life spans, financial uncertainty and shifting expectations are redefining retirement, transforming it from a fixed destination to an evolving journey that demands new thinking from both savers and the industry,” T Rowe Price global retirement strategist Jessica Sclafani noted.
Savers in Australia were more upbeat about the economic outlook than other nations with less than half concerned about a near-term recession, 43 per cent, compared to Japan and Canada where respectively 62 per cent and 56 per cent of respondents anticipated more difficult economic times ahead.
Overall, 50 per cent of respondents expect a recession by mid-2026, with inflation rated as a top concern (42 per cent), as well as geopolitical events (30 per cent) and interest rates (27 per cent).
Further, 17 per cent of those surveyed believe they will run out of money in retirement and only 27 per cent are confident they could weather a major financial shock while retired.
“By studying these shifts in attitude, we can better understand what savers need today and empower them with the strategies and solutions that can build financial security, confidence and optimism for the future,” Sclafani said.
The research surveyed more than 7000 retirement savers in the United States, Australia, Canada, Japan and the United Kingdom.
