POWERED BY MOMENTUM MEDIA
Retirement confidence continues to plummet
State Street Global Advisors have found that 40% of Australians have minimal confidence in their preparedness for retirement, despite recent reforms.
State Street Global Advisors (SSGA) released its 2022 Global Retirement Reality Report, which surveyed over 3,500 workers across Australia, US, the UK and Ireland, including around 600 in Australia.
The survey aimed to measure the perceptions surrounding future retirement, specific barriers and the behaviour of those leaving the workforce.
Although the Australian retirement system experienced recent changes including Your Future Your Super (YFYS) reforms and the Retirement Income Covenant, 40% of Australian respondents expressed little confidence regarding their readiness to retire.
This percentage had marginally changed over the last four years, despite system changes.
The report identified that the confidence deficit was the most prevalent amongst those on lower incomes as well as those closest to retirement.
Jonathan Shead, head of investments at State Street Australia, commented: “There is clearly still much work to be done, by both industry and government, in simplifying, explaining and confidence building for our national retirement system”.
Additionally, 34% of Australians surveyed indicated a changed outlook on retirement due to pandemic-inspired job mobility. This statistic was higher in comparison to the UK, Ireland and US, which sat at 25%.
Amongst the factors most negatively impacting confidence surrounding retirement, inflation was the largest dampener. This was present for both Australia, with 65% including inflation in their top three factors, and the rest of the world, where 70% selected this issue.
Mortgage or rental costs were other major concerns troubling 35% of Australians, amidst rising interest rates and economic slowdown globally.
Additional findings indicated that women demonstrated far less optimism towards their financial readiness for retirement, with only 18% of women feeling prepared compared to 38% of men. Only 17% of women were confident they will be able to retire when they want to, contrasting 38% for men.
AUTHOR
Jasmine Siljic
Jasmine Siljic is a journalist at Super Review. Prior to joining SR, she also worked across other Momentum Media brands as an intern and cadet journalist. She recently completed a Bachelor of Media and Communications at Macquarie University.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
