Over three-quarters of Australians believe inflation is a big threat to their retirement security, according to Natixis Investment Managers.
The firm’s Global Individual Investor Survey found 82 per cent of respondents in Australia said recent inflation had highlighted to them how big a threat inflation was to their retirement security.
Over half of respondents in Australia said they were worried about inflation and 42 per cent were worried about interest rates.
CPI inflation had peaked at 7.8 per cent in December 2022 but fallen to 7 per cent in the year to March 2023.
Meanwhile, interest rates were currently at 4.1 per cent and the Reserve Bank of Australia expected them to keep rising this year.
With this in mind, 43 per cent of Australians said they would be most interested in retirement income planning and 39 per cent would seek financial planning advice.
Globally, 66 per cent of the 8,500 respondents surveyed said inflation has significantly hurt their ability to save for retirement and 55 per cent said it means they are saving less than before due to higher cost of everyday expenses.
Over half of global respondents (58 per cent) said inflation was their biggest investment concern in 2023.
However, 91 per cent of respondents said they trust their financial adviser to make financial decisions, higher than 50 per cent who trust their retirement plan provider.
Louise Watson, managing director and country head for Australia and New Zealand at Natixis IM, said: “Volatility and inflation are certainly impacting investors’ short-term outlook but longer-term they are more optimistic about returns and their capacity to save for retirement. Central to achieving their goals will be working with trusted financial advisers, and the survey confirms that Australian investors hold their financial advisers in high regard.
“The findings also reaffirm the importance of including active management to deliver returns and the importance of investors understanding the role different asset classes can play in delivering diversification and performance to a long-term investment portfolio.”