Advice grants Aussies choice, enjoyment in retirement: CFS

A new research report from Colonial First State (CFS) has confirmed the changing attitudes towards retirement, as advised Australians enjoy more certainty and comfort compared to the unadvised craving flexibility and confidence.

The Rethinking Retirement report, which surveyed 2,247 Australians including 430 retirees, found 83 per cent want flexible access to their retirement savings “if and when they need it”.

Off the back of this, two-thirds of Australians responded to the survey that they do not retire at a time of their choice, due to health, redundancy and other factors out of their control. The survey showed 70 per cent are currently able to enjoy a “comfortable” retirement with their savings – albeit providing different ideas of what a comfortable retirement looks like.

“Whether your retirement plans include travelling the world, staying close to home or pursuing a passion project, it is clear that retirement is personal and choice and flexibility are key,” CFS Superannuation CEO, Kelly Power, said.

“It is also clear that attitudes towards retirement are shifting. Most Australians plan to continue working into their later years. Less than a third plan to stop working completely once they reach the retirement age.”

The report also suggested the benefits of financial advice in deciding on retirement pathways, with advised Australians twice as likely to retire at their desired time than unadvised Australians.

According to the research, over three-quarters (77 per cent) of respondents who had a financial adviser were enjoying their retirement, compared to 52 per cent that are unadvised.

“The way people think about retirement is changing. The traditional idea of retirement as a point in time or a specific date when we stop working is becoming less prevalent,” Power said.

“With flexible access to super and flexible employment to play a larger role in people’s retirement plans, the need for financial advice becomes even more important.

“Those looking to work beyond the age of 67 need to consider the tax implications and how their choices could impact their eligibility for the Age Pension. Planning early and seeking advice will put you in a better position to retire with confidence.”