COVID prevents Australians from hanging up their boots

New research from profit-to-member superannuation fund, Equip, has found over one in four Australians (26 per cent) believe the COVID-19 pandemic has affected their retirement plans.

The results of the poll of over 2,000 people also showed that 11 per cent held COVID-19 responsible for postponing their plans to retire and 15 per cent of those aged over 55 said they have been forced to delay their retirement, with almost half (46 per cent) delaying it by four or five years.

Almost one-third of Australians also responded that they feel unable to control the lead-up into their retirement, with many feeling they won’t be able to wind down their working life on their own terms.

The survey also found that 15 per cent of Australians will likely pick up the pace of their journey into retirement as a result of the pandemic.

“Purse strings have been tightened due to the rising cost of living and the fallout from COVID. It’s not surprising that this pressure is causing some retirement plans to be revised,” Scott Cameron, CEO of Equip, said.

This was reflected in the survey results, with 22 per cent of people citing a decline in their annual income in the last two years and 25 per cent saying they have less disposable income now than in 2020. This figure soared to 33 per cent for those aged 55 years and over.

“Retirement is one of the most important stages in a person’s life. We all have different ambitions for our retirement, but for most of us, it’s a time to enjoy the simple pleasures in life,” Cameron said.

“Quality time with family, travel and pursuing hobbies that full time work doesn’t usually allow for.

“Small steps now, such as making voluntary contributions into your super if you have disposable income, can have a huge pay off down the line.”

The study also showed Australians have miscalculated the amount needed to retire comfortably, with 36 per cent estimating an individual will need at least $750,000. This comes despite the Association of Superannuation Funds of Australia’s Retirement Standard saying single people will need $545,000 in retirement savings and couples will need $640,000.

“Many Australians are grossly misjudging how much they need in their reserve to retire, which is likely causing additional – and perhaps unnecessary stress,” Cameron said.