Research commissioned by St George Bank has revealed that more than one in three older Australians feel they do not have enough money set aside for retirement.
Over 40 percent of the 1,000 50-75 year-old Australians surveyed by the bank said they may be on track for a comfortable retirement, but would like to have more money set aside.
Over one in four (27 percent) said they do not feel on track for a comfortable retirement, while only around one in five (22 percent) said they are definitely on track for a comfortable retirement.
The figures make for slightly better reading than the findings of a similar report from MLC earlier this year, which reported that only 15 percent of Australians believe they are very well or fairly well prepared for retirement.
Respondents to the St George survey voted ‘financial security’ as the number one concern in retirement, followed by health issues and losing independence, maintaining a sense of purpose and estate planning.
- 27% of respondents do not feel on track for a comfortable retirement
- 9% of respondents do not feel on track for a comfortable retirement, but do not plan to retire for some time
- 42% of respondents said they may be on track for a comfortable retirement but would like to have some more money set aside
- 22% of respondents said they are definitely on track for a comfortable retirement
- 73% of respondents have never received professional financial planning advice
- Of those who have sought advice (27% of respondents), 55% went to a financial adviser, followed by a super fund (21%) and a bank (14%)
- 26% of respondents confess to having never reviewed their financial plan while 24% review once a year, and 22% once every six months
Do you need professional advice?
Ross Miller, General Manager of St.George Retail Bank, said the research findings serve as a reminder to continually evaluate your financial plan so you can live a full life with security in retirement.
“It’s eye-opening to see only one quarter of respondents have sought professional advice, despite the research signalling that older Australians are more worried about their financial security in retirement than they are about their health, losing independence, or maintaining a sense of purpose,” he said.
“With more than 40% of our customers over the age of 50, we know their lifestyle priorities and spending habits are rapidly changing and financial planning should reflect that.”
Mr Miller encouraged Australians nearing retirement age to visit their branch to start a conversation with a banker about their financial health.
“We understand retirement doesn’t necessarily mean a retirement home and we’re here to help older Australians plan for a future that suits their individual needs,” he said.