New research has shown that middle-aged Australians lack confidence when it comes to planning their own retirement, with half of 40-59-year-olds admitting they don’t think they will have enough money to fund a cosy lifestyle when they finish working.
Qantas Super carried out the study, which questioned 1009 adult Aussies across a representative age range about their feelings on retirement, and revealed that those between the ages of 40 and 59 are the most pessimistic about retired life.
A whopping 39 per cent revealed they have “little to no confidence” that they will be able to retire comfortably in the not-too-distant-future, with just 6 per cent owning up to feeling “very confident”.
The findings were published in the super fund’s most recent retirement confidence index’, which looks at the overall confidence of Aussie adults in relation to their impending retirement, and revealed the level of confidence has actually dropped since December last year.
Qantas Super CEO Michael Clancy said: “Many people who are contemplating their retirement needs have a genuine fear of the unknown. The antidote to this fear is awareness, education, and quality advice, which allow people to work with the resources they have to achieve the best retirement lifestyle possible.
“This is true for all age groups. Super really is your money and people need to own it.”
Almost half of 40-59-year-olds said they can’t rely on their super and other investments to ensure their financial wellbeing in retirement, and 48 per cent blamed external factors, such as the economy and government, make it impossible to plan properly.
The current cost of living was another factor which contributed to a decrease in confidence with 44 per cent stating it influenced how they feel about retirement. While just 35 per cent of those asked said they know how much money they will need to enjoy a pleasant retirement.
Clancy added: “Government and businesses have an important role to play in encouraging good behaviours around money and retirement planning, and encouraging people to take an active interest in their future.”
The results showed that, across all age-groups, 54 per cent of Aussies agreed that external factors made it difficult to prepare for retirement, with the most common influencing factors being cost of living/inflation, general economy and global uncertainty.