Retirement is often seen as a time to relax and enjoy the fruits of decades of hard work. However, a new study suggests Australians are rethinking what this next chapter will look like.
UniSuper’s inaugural Retire with Purpose Report has revealed that many Australians are open to working in retirement, not just for the income but to maintain a sense of connection and purpose.
The key findings from the study include:
Financial concerns: Nearly half of pre-retirees (45 per cent) feel unprepared for retirement, and 48 per cent don’t know how much money they’ll need.
Longevity worries: 68 per cent of Australians fear outliving their retirement savings.
Social connection matters: More than a quarter (29 per cent) plan to keep working or delay retirement to maintain valued social networks.
Priorities in retirement: Caring for loved ones is important for 64 per cent of Australians, while 33 per cent see volunteering and community involvement as key goals.
UniSuper CEO Peter Chun says these findings show retirement is no longer a one-size-fits-all approach.
“Retirement is one of life’s most significant milestones and it’s natural for people to worry about losing their sense of connection, identity and purpose when they leave full-time work and their career. What is inspiring is that rather than retreating, many Australians are reimagining retirement not as an end, but as the start of a new chapter filled with meaning, growth and fresh opportunity,” Chun said.
“Australians are seeking meaningful ways to stay connected and they’re doing it on their own terms. Whether it’s part-time work, volunteering or creative pursuits, the path to purpose in retirement is deeply personal. This is a powerful reminder that one-size-fits-all solutions no longer serve today’s retirees. As superannuation funds, we have a responsibility to help our members create superannuation strategies that are hyper-personalised and designed to support their diverse goals, lifestyles and aspirations.”
While many older adults plan to approach retirement in their own fulfilling way, with so many Australians feeling they aren’t financially prepared for retirement, experts advise taking action now.
Chris Brycki, Founder and CEO of Stockspot, recommends the following three simple strategies.
Sydney-based Wealth Coach Andrew Woodward, from The Investor’s Way, reassures soon-to-be retirees that there are ways to get back on track.
Woodward suggests that “if you are short of your asset goals” then “increase the amount you are putting into superannuation”.
“The best thing you can do while still working is increase the amount of money from your current income that you are investing or putting into superannuation,” Woodward says.
“Be sure you are taking advantage of the tax benefits for additional contributions to your superannuation, which can be done from pre or post tax income,” he adds.
“If you are able to divert some of your pre-tax income to superannuation you can accelerate the growth of your assets.”
Woodward advises that ” the simplest way to reduce what is required in retirement is to reassess your lifestyle and adjust your spending to align with what assets you have available to meet you expenses.”
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.