Many Australians still remain unprepared to tackle the risks of retirement.
This is a major hazard not just to the future wellbeing of retirees but also to future generations as the needs of older Australians weighs down the government’s budget.
While Australia’s superannuation system is one of the largest in the world with approximately $2 trillion in assets, the incomes of more than 6o% of people aged over 65 are bolstered by the government’s Age Pension ‘safety net’.
The average super balance at retirement is just $197,000 for men and $105,000 for women, although the average couple needs just over $500,000 to ensure that they can live comfortably in retirement.
It is an issue which needs to be tackled realistically but is being exacerbated by a perception gap. More than 60% of individuals aged 55 to 59 expect to self-fund their retirement, according to recent Australian Bureau of Statistics data, but less than 20% are meeting those expectations.5 Similarly, many Australians don’t believe they will live as long as they are likely to: Women underestimate their life expectancy by an average of around five years and men by three years.
Similar issues are facing investors around the developed world as the Baby Boomer generation approaches retirement.
The solution is finding strategies to improve their retirement. Maybe they can save more, spend less, or generate higher returns from their investments. If they are going to rely more on growth-oriented investments to achieve their retirement goals, they will need to consider a range of strategies to better manage the impact of short-term volatility and potential for capital losses.
Here is where we can help: with the expertise we can provide the appropriate strategic advice and know who to change a dire situation into something special.
In preparing in this article we have not taken into account any particular persons objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain financial advice specific to their situation before making any financial investment or insurance decision.