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A look at lifestyle, financial security and retirement in Australia, Part 3

Written and accurate as at: Aug 24, 2016 Current Stats & Facts

Many of us feel unprepared for retirement

Of those not presently retired, 2 in 3, (66%) are ‘slightly or not at all prepared’ for retirement. Only 15% said they were ‘very well or fairly well’ prepared. Unsurprisingly, young people aged 25–29 were significantly more likely to feel unprepared (79%). So too, were women (74% compared to 57% of men) not surprisingly—who retire with 40% less super than men.

Knowledge makes a big difference to our level of confidence

The knowledge gained from working with a financial professional made a significant difference to how prepared participants felt when it came to self-funding their retirement. Those who used some type of financial professional were significantly more likely (21%) to feel ‘very well/fairly well prepared’ for retirement, while those who used financial planners/advisers specifically were even more confident (35%)—than those who did not use any type of financial professional at all (only 9% of these felt very well/ fairly well prepared’ for retirement).

Will our super be enough to see us through?

Just how many Australians are on the path to a self-funded retirement? Only 54% believe that their superannuation will be enough to see them through their post-work lives. However those with financial planners/advisers (76%) and those with accountants (63%) were more confident, being much more likely to agree that they would rely on their superannuation in retirement. Those who used financial professionals were also much less likely to say they would rely on the government in retirement: only 27% of those with a financial planner/adviser and 31% of those with an accountant indicated that they agree with ‘I am/will relying on the Australian Government in my retirement’, as opposed to 49% among those who don’t employ a financial professional. In general, super is starting to creep onto the radar, with some topping up their retirement savings: 29% made additional contributions to their super funds in the preceding 12 months.

To read the full article click here.

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