Aussies do not have enough funds to retire

The majority of Australians believe they do not have enough funds to retire comfortably as they start the retirement planning process too late, a Mortgage Choice's study revealed.

According to its Diversified survey, 65 per cent of all Australians admitted they lacked sufficient funds to maintain a comfortable lifestyle in retirement, however the data was not surprising.

Mortgage Choice's chief executive officer, John Flavell, noted that 54 per cent of the population was not seriously planning their retirement until they were over 50, which was often too late.

"People don't want to give their retirement serious thought when they are younger because it is not something that is going to affect them any time soon," he said.

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Also, considering how much money Australians needed in order to retire comfortably, it was crucial for them to begin the planning process as early as possible.

According to the Association of Superannuation Funds of Australia, on average couples would need around $640,000 in savings, while singles would need $545,000, to sustain a comfortable lifestyle.

Additionally, Flavell noted that most people did not realise the fact that they were heading into retirement with debt "hanging over their heads" as, according to the statistics, many Australians over the coming years were expected to reach retirement age with a mortgage.

"Australians should seek out financial advice early on in their financial journey, and put strategies in place today that will help them achieve their financial objectives and lead a comfortable retirement," Flavell said.

"As the old adage goes ‘don't put off til tomorrow what you can do today'."