POWERED BY MOMENTUM MEDIA
Pre-retirees see confidence fall to 10-year low
Confidence levels among pre-retirees are at a 10-year low, according to Investments Trends, as they believe they feel unprepared for retirement.
In the firm’s latest annual Retirement Income Report, surveyed Australian’s attitudes to retirement and post-retirement issues,
Only half said they were prepared for retirement, down from 75% last year, and non-retirees expected their retirement income to be on average $3,200 per month.
Concerns about the cost of medical treatment rose from 32% last year to 43% while inflation concerns rose from 28% to 42%.
This fear of insufficient funds was driving non-retirees to seek retirement-related information to improve their preparations with the most-used source being their superannuation fund followed by financial advisers.
They were also seeking enhancements around projections for cost of living, expected weekly income and inflation adjustments.
When it came to accessing retirement solutions, non-retirees felt longevity protection, a guaranteed minimum income and flexible access to funds were the most essential features offered by a retirement income product.
“Preference for retirement products varies significantly by age, super balance and evolves over time. We found that many members are unable to articulate their requirements, highlighting the importance of providing both education and advice at this life stage,” said Dougal Guild, research director at Investment Trends.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
