HBSC have conducted a survey over 15 countries looking at 16 000 people’s attitude towards retirement savings. The survey shows that people will run out of money after 10 years of retirement.
With Australian’s expected to have 23 years of retirement, the figures leaves a 13 year gap with little or no pension to live on.
This is the longest gap of the 15 countries surveyed. The survey results show the main reasons they are not currently saving sufficiently is because of mortgage or other debt repayments that are the priority.
44% of the surveyed said they are not adequately prepared for retirement; they simple cannot afford to save for retirement.
A large percent of Australian baby boomers told another survey, conducted on behalf of Industry Super Fund (REST), they are not convinced that they can support a satisfying living when they stop their working life.
Some reasons why Australian baby boomers are struggling with retirement savings, are that we did not introduce compulsory super contribution until 1992 at 3%, which is much lower than the current rate of 9%.
This means that many older baby boomers only used compulsory contribution for a sometime smaller part of their working life.
The survey found only 14 % of baby boomers are financially prepared for retirement.
An agent of ‘The Association of Superannuation Funds of Australia’s Retirement Standard’, says “we are expected to live until we are 83 now and we have to be prepared for this.”
If you start saving early, the interest you earn can work like magic when it compounds. Some of the things you can do to help is cut down 1 cup of coffee a day and move the balance into super. It could help you with $125,000 in your final super.
Some data shows that Australian’s average super for men sits at $197,000 and $105,000 for women. This is by far not enough to live a healthy lifestyle.
At Peachey’s, we have helped hundreds of clients like yourself with a retirement strategy which benefits you and your family. Our financial planners will look at your cash flows, liabilities and other outgoings to build and plan to secure the wealth you need for your retirement.
You do not need to be rich to set up a plan and achieve a healthy retirement. We can help you break down the barriers that are currently stopping you from saving. Call and book your consultation with our financial planners in Ipswich or Hervey Bay.