Inaugural research from the Challenger Institute for Lifetime Income has shown a significant majority of Australians (82 per cent) are confident they can afford their desired retirement lifestyle.
The research, conducted by Susan Bell Research on behalf of Challenger, surveyed 1000 Australians aged between 60 and 80 and also revealed confidence to spend in retirement can vary greatly across different cohorts, which the institute has divided into the “four personas of retirement”.
The personas are carefree, content, cautious and concerned and are not necessarily defined by retirement wealth or demographics.
“Pleasingly, the research shows half of Australian retirees are living a carefree or content lifestyle, enjoying retirement on their terms and choosing to spend on the things that matter to them most,” Challenger head of retirement income Aaron Minney recognised.
According to Challenger, the most surprising finding from the research was that people with very similar financial circumstances were often living very different lifestyles in retirement.
“The story is especially nuanced for those retirees in the middle with balances between $300,000 up to $1 million. We now know that super balance, while important, does not tell the whole story on retirement adequacy,” Minney noted.
Further, the analysis indicated for some retirees confidence and spending grew as they settled into retirement, while others found they needed to cut back on spending due to unforeseen circumstances.
A significant portion of those surveyed also received some form of advice or assistance, with 73 per cent of retirees saying they had gotten help and more than half (51 per cent) of pre-retirees saying they had received assistance.
However, the study found being a recipient of advice did not necessarily solve all issues, with 55 per cent of retirees and 71 per cent of pre-retirees admitting they felt there were other topics for which it was worth getting advice or guidance.
“Retirement is not simply a phase of life. It is a dynamic, constantly changing life cycle that requires consistent care and attention. Our hope is that this research, and our efforts at the Institute for Lifetime Income, will empower greater, ongoing retirement conversations and help more Australians have financial security for a better retirement,” Minney explained.
