The latest analysis into the attitudes of Australians approaching retirement has revealed many are planning to extend their working lives as a result of the rising cost of living and general economic uncertainty.
The ”Equip Super’s Financial Security Index” found the average expected retirement age has been pushed back by more than six years.
The study indicated several factors were influencing the decision to postpone retirement, with cost-of-living pressures being the biggest concern at 43 per cent, followed by insufficient savings at 25 per cent and healthcare affordability at 18 per cent.
Additionally, only 20 per cent of respondents were feeling more optimistic about the economy than they did a year ago.
“Many Australians are feeling the impact of higher living costs and changing economic conditions,” Equip Super chief experience officer Carrie Norman observed.
“While the environment is challenging, there are still positive, practical steps people can take, from reviewing their investment mix to accessing financial advice or support to help them make informed decisions and feel more confident about the future.”
Further, the research showed the pervading economic landscape had affected people’s approach towards their superannuation, with 21 per cent of participants admitting they had reduced their contributions, contrasted by the 10 per cent who had increased the amount of money allocated to their retirement savings vehicles.
In a proactive move, the study found 45 per cent of participants had reviewed their retirement plan and 52 per cent wanted more guidance to make confident financial decisions.
“We are seeing more members come to us for retirement planning and advice,” Norman said.
“Some members are adjusting contributions, others are deferring retirement, but the common theme is Australians are taking stock and making decisions that help them regain a sense of control and confidence in their retirement. That willingness to engage is encouraging.
“Taking manageable actions, even small ones, can make a meaningful difference over time and help people stay confident and connected to their long-term retirement goals.”
The ”Equip Super’s Financial Security Index” examined the survey responses of over 2000 Australians.
