Fear and apathy towards retirement
There is a conflicting sense of fear and apathy when it comes to retirement in Australia, with the majority worried about retirement, while only a few proactively manage these affairs.
That was the finding in the latest HSBC Future of Retirement report, titled ‘Shifting Sands’, which revealed only 21 per cent of Australians believed they would have a comfortable retirement, the second lowest in the report, compared to 41 per cent of Americans and 69 per cent of Indians.
Australians were also the third most concerned about the rising cost of healthcare in retirement (30 per cent), behind Hong Kong residents (46 per cent), and Singaporeans (50 per cent).
Despite the fear of not being able to afford a comfortable lifestyle in retirement, only 38 per cent of Australian Baby Boomers have sought information on retirement funding, compared to the global average of 50 per cent. Millennials were the most active in seeking information on retirement (50 per cent), compared to 39 per cent of Generation X.
The report, which surveyed over 18,000 people in 16 countries around the world found working age Australians were third least likely to actively move money to increase returns for their retirement funding (32 per cent), compared to 79 per cent in China and 64 per cent in Indonesia.
HSBC Australia head of wealth, Scott Ellis said: “Our research also showed Australians are not taking advantage of the many resources available online for managing their retirement”.
“Only a quarter of working age people surveyed had researched options online, compared to 35 per cent globally.”
The survey also found Generation X were more risk averse than their international counterparts, with only 17 per cent of the cohort willing to take investment risks, compared with 33 per cent of this group globally.
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