Pre-retirees see confidence fall to 10-year low

Confidence levels among pre-retirees are at a 10-year low, according to Investments Trends, as they believe they feel unprepared for retirement.

In the firm’s latest annual Retirement Income Report, surveyed Australian’s attitudes to retirement and post-retirement issues,

Only half said they were prepared for retirement, down from 75% last year, and non-retirees expected their retirement income to be on average $3,200 per month.

Concerns about the cost of medical treatment rose from 32% last year to 43% while inflation concerns rose from 28% to 42%.

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This fear of insufficient funds was driving non-retirees to seek retirement-related information to improve their preparations with the most-used source being their superannuation fund followed by financial advisers.

They were also seeking enhancements around projections for cost of living, expected weekly income and inflation adjustments.

When it came to accessing retirement solutions, non-retirees felt longevity protection, a guaranteed minimum income and flexible access to funds were the most essential features offered by a retirement income product.

“Preference for retirement products varies significantly by age, super balance and evolves over time. We found that many members are unable to articulate their requirements, highlighting the importance of providing both education and advice at this life stage,” said Dougal Guild, research director at Investment Trends.