Good advice and policy certainty keys to retirement happiness

11 October 2018
| By Mike |
image
image
expand image

New research has revealed the importance of good advice and consistent Government policy approaches in ensuring peoples’ happiness with their retirement outcome.

The research, undertaken by State Street Global Advisors compared international retirement structures and concluded that a high ranking such as that enjoyed in the Netherlands did not guarantee satisfaction on the part of retirees.

It said that while the Netherlands consistently ranked as one of the strongest retirement systems in the world it had the second-lowest level of satisfaction in retirement for all countries surveyed, while in the lower-ranking US savers on a defined contribution plan were very confident and optimistic about their prospects and were generally happy in retirement.

The report found that the key factors driving retirement happiness were a combination of trust in a country’s retirement system stability, a strong feeling of ownership regarding their own outcomes and being well prepared in terms of accumulated retirement assets.

It found that stability and credibility in a country’s retirement system engendered trust whereas change or the expectation of change at the policy level, such as alteration of retirement age, eroded trust.

The report also found that people who accepted responsibility for their retirement and understood the chances that they could make felt more secure, with respondents in the US and Australia who had a long tradition of individual retirement responsibility through defined contributions, were happiest.

It said the challenge faced by many was determining how much is “enough” and understanding whether savings would be sufficient with the study highlighting that few people understand how to convert a relatively large lump sum into a dependable income for life, making the definition of sufficiency elusive.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 1 month ago
Kevin Gorman

Super director remuneration ...

1 year 1 month ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 1 month ago

Global X believes the yellow metal could soar as high as US$3,000 this year, with market flows leading the charge....

3 days ago

While Australian companies could face starkly different climate-related reporting regimes depending on which way the election swings, a sustainable investment specialist ...

3 days ago

The Association of Superannuation Funds of Australia (ASFA) is calling on the federal government to focus on measures in the upcoming budget that will improve fairness fo...

3 days ago

TOP PERFORMING FUNDS