Two-thirds of Australians don’t believe they’ll be able to reach their retirement goals without professional help, with 84 per cent citing a financial planner as their go-to, according to Investment Trends’ Retirement Planner report.
The report showed there was also a pretty large misconception as to how much income is required to retire, with pre-retirees citing an expected necessary income of $480,000, while actual retirees cited only $300,000.
Pre-retirees also thought they would expect to receive an average of $2,800 per month in retirement, but thought they would need $3,300 to live, while actual retirees could get by with just $2,200.
“There are a lot of people out there who just don’t know how much they’ll need for retirement…They often over-project,” said senior analyst at Investment Trends, King Loong Choi.
Choi added that less than half (42 per cent) of pre-retirees said they felt well-informed about what income they would need for retirement, and the vast majority was aware they’d need professional help.
When asked what their top priorities were, pre-retirees reported gaining access to financial advice and access to a longevity protection product such as annuities.
“The main thing people want is to get access to a product which can help provide a guaranteed income for the rest of their life in retirement,” said Choi.
The study also highlighted that planners’ use of annuities had grown very strongly in recent periods, up from 27 per cent in 2012 to 43 per cent in 2017, with a projected increase to 59 per cent this year.