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Retirement confidence hits 10-year low

Mike Taylor15 November 2024
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Retirement preparedness in Australia has fallen to a 10 year low, according to new research from Investment Trends sponsored by Brighter Super.

The survey underlying the research has revealed a striking difference in attitudes when compared to 2021.

“The survey indicates Australians are feeling less prepared for retirement in 2024 than at any time in the past decade,” it said. “Concerns about financial readiness have been climbing steadily, with 47% of pre-retirees now feeling unprepared – a sharp increase from 35% in 2023.”

“This decline in confidence is striking when compared to 2021, a pandemic year that brought a peak in retirement optimism,” the research analysis said. “During that time, 60% of pre-retirees felt prepared for retirement, with 14% declaring themselves very well prepared.”

“Fast forward to 2024, and that optimism has faded. Today, only 29% of pre-retirees feel they are prepared for retirement, down from 41% in 2023. Just 5% considered themselves very well prepared for retirement in 2024, a decade low, compared with 7% in 2023.”

The research analysis said the perceived retirement income gap is widening.

“Concerns among pre-retirees are deepening. The rising price of goods and services is the top financial concern among pre-retirees at 57%, followed by not having enough money to retire on (50%).”

“In 2024, the proportion of pre-retirees expecting a funding gap, between the retirement income they perceive they will require and what they anticipate they will have, rose to 62%, up from 55% in 2023.”

“The median funding gap anticipated by pre-retirees rose to 31%, or $1,300 a month, in 2024, from 28%, or $1,200 a month, in 2023,” it said.

“This growing gap has shaken retirement confidence among pre-retirees over the past 12 months. In 2024, only 23% of pre-retirees thought they would be able to live comfortably in retirement (down from 33% in 2023), while 34% expect they would be able to afford only basic living expenses, with little left over for extras,” the research said.

Mike Taylor

Mike Taylor

Managing Editor/Publisher, Financial Newswire

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Canberra Morons
4 days ago

Doesn’t access to Real Advice make retirees much more confident ?
Having tripled the costs of advice and halved the number of Advisers, great work Canberra.