POWERED BY MOMENTUM MEDIA
Young Australians think $1.7 million is needed for retirement
While baby boomers may have underestimated the amount they need for a comfortable retirement, younger generations think they many need as much as $1.74 million to retire, according to new research conducted for ING by Rice Warner.
The cross-generational research suggests that, on average, Generations X, Y and Z believe they will need between $1.5 million and $1.74 million each in savings – more than double the Association of Superannuation Funds of Australian comfortable retirement benchmark.
As well it found that Gen X respondents did not think they would be financial ready to retire until they were 72, despite wanting to retire at age 63, while Gen Y wanted to retire at 61 but thought it unlikely they would be able to until they were 68.
Not surprisingly, having enough money to live comfortably and not having to worry about a mortgage or rent were the two top things that respondents believed would make for a happy retirement.
Commenting on the results, ING head of retail banking, Melanie Evans said that for Aussies it was the simple things that would make them happy in retirement such as having enough money to live well and home security
She also noted that many would not be happy to completely stop work with many indicating they would be choosing some sort of casual work throughout their retirements.
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New research has suggested it’s time to reconsider the home as a fourth pillar of the retirement income system, alongside the age pension, superannuation, and voluntary private savings.
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