POWERED BY MOMENTUM MEDIA
Young Australians think $1.7 million is needed for retirement
While baby boomers may have underestimated the amount they need for a comfortable retirement, younger generations think they many need as much as $1.74 million to retire, according to new research conducted for ING by Rice Warner.
The cross-generational research suggests that, on average, Generations X, Y and Z believe they will need between $1.5 million and $1.74 million each in savings – more than double the Association of Superannuation Funds of Australian comfortable retirement benchmark.
As well it found that Gen X respondents did not think they would be financial ready to retire until they were 72, despite wanting to retire at age 63, while Gen Y wanted to retire at 61 but thought it unlikely they would be able to until they were 68.
Not surprisingly, having enough money to live comfortably and not having to worry about a mortgage or rent were the two top things that respondents believed would make for a happy retirement.
Commenting on the results, ING head of retail banking, Melanie Evans said that for Aussies it was the simple things that would make them happy in retirement such as having enough money to live well and home security
She also noted that many would not be happy to completely stop work with many indicating they would be choosing some sort of casual work throughout their retirements.
Recommended for you
Speaking to Super Review, the $70 billion fund has unveiled its new solution to address the ‘cognitive load’ of retirement as members enter their golden years.
New research has suggested it’s time to reconsider the home as a fourth pillar of the retirement income system, alongside the age pension, superannuation, and voluntary private savings.
New research has revealed over 60 per cent of retirees believe their super fund offers retirement income products suitable to support their retirement lifestyle.
Some retirees are “needlessly” paying two sets of fees and often more tax than they need to, according to the industry body.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
