Qantas Super’s CSBA Retirement Confidence Index, which launched today, has reinforced sentiment that Australians are nervous about retirement income, finding that 63 per cent don’t feel confident that they will be able to retire comfortably.
The RCI, which questioned more than 1,000 Australian pre-retirees and retirees, revealed that 29 per cent of pre-retirees did not think they could do anything to improve their retirement income situation either.
Fifty-five per cent of those surveyed blamed external factors beyond their control, such as the cost of living, government regulations and the Australian and global economies, for this.
Qantas Super chief executive, Michael Clancy, said that this showed that more knowledge around the money needed for retirement was necessary, with just 43 per cent of Australians saying they knew how much money they would need.
“These results speak to a strong need to improve the financial literacy and capability of the Australian population, so they are equipped with the knowledge to improve their situation,” he said.
“In particular, taking action during early life stages will help combat this crisis of confidence and better prepare Australians for their retirement, while reducing the economic burden on the country in the future.”
Clancy suggested that a practical way to help improve confidence is to try to prioritise saving more now, saying that “just contributing a little bit each month to your super account … can make a difference.”
The $300 billion fund has announced the development of a new flexible lifetime income option in partnership with TAL.
As regulators spur funds to focus on Australia’s ageing population and overseas players voice their interests, professionals expect a boost in innovative activity in super.
Over half of Australians hope to live to 100 years, according to MetLife, and 90 per cent believe retirement should be redefined to account for a longer lifespan.
Two actuaries have urged for an overhaul of the current retirement framework to better prepare Australians for the future and improve the accessibility of general financial advice.
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