Hopes and Fears: the expectations and reality of retirement: I read a report earlier this month that I thought was worth sharing. Early in 2018 State Street Global Advisors conducted an online survey in conjunction with YouGov across eight countries representing a range of different retirement systems. Australia was included and, although the sample is not particularly large, the results are interesting in that generally they fall into line with similar surveys I have read in recent times and intuitively to me at least they appear reasonably representative.
The key findings included:
- The message is getting through that we need to prepare for our own retirement rather than rely on others, including government.
- However, still only 19% of working Australians are optimistic about their financial situation in retirement.
- 42% of working Australians intend to retire later than expected in order to fund a perceived shortfall in superannuation, while 46% expected to downsize to a smaller home, thus freeing up home equity.
- People are increasingly turning towards their super fund and/or a financial adviser for advice, and more so as they get closer to retirement. [My comment: the earlier you do it the easier the job is].
But, unsurprisingly, the most useful advice comes from those already in retirement. “What advice would they give to people who are currently working?”
72% suggested engaging in the planning process earlier
69% said to start saving earlier
In my experience the typical Solace Financial client feels far more optimistic about their future for the simple and obvious reason that they have already started planning. Do you? That’s what we’re here to talk about.
The full report is surprisingly reader friendly – Click here for the full report
Chart: What advice would today’s retirees give to people still working?
Sources: RBA, SSGA, APN, PM Global Investors, MorningStar Research, State Street Global Advisors: Global Retirement Reality Report 2018 Australia Snapshot.