Australians are exhibiting higher confidence regarding their retirement than in previous years, State Street Global Advisors (SSGA) has found.
The asset manager’s Global Retirement Reality Report, surveying over 600 Australians, revealed one in three (33 per cent) expressed optimism about being financially ready for retirement by their desired retirement age.
This was a notable rise from 24 per cent in August 2023, SSGA stated, and 22 per cent in May 2020 – marking a five-year high for retirement confidence in Australia.
With the global survey canvassing over 4,300 employees from the US, UK, Ireland, Australia and Canada, it saw Australia rank in second position for retirement preparedness behind the US at 34 per cent.
Meanwhile, Canada and the UK demonstrated the lowest optimism levels, both sitting at 20 per cent.
SSGA’s research also uncovered that confidence levels among advised respondents in Australia was significantly higher at 64 per cent, compared to 25 per cent of unadvised respondents.
The main subjects Australians sought professional guidance on were investment advice and retirement planning, the report added, followed by debt management, estate planning, and tax planning.
Despite this, under 10 per cent of survey respondents had actually seen an adviser in the past six months, noted Jonathan Shead, Australian head of investments at SSGA.
“With an ageing population and an environment where change and uncertainty remain constant, retirement planning has never been more important. We know that optimism alone will not carry Australians across the finish line,” Shead described.
“Bridging the confidence gap between aspiration and proper retirement readiness requires collaboration, education, and a renewed focus on evolving superannuation plans. We hope to see more Australians turn their retirement aspirations into reality.”
Barriers preventing more Australians from seeking an advice relationship continue to be perceptions of fees being too high (49 per cent) and confidence in one’s own abilities (40 per cent), according to SSGA.
Separate research from Colonial First State (CFS) recently found two-thirds of Australians are eager for legislative change to enhance the accessibility of financial advice.
An overwhelming 82 per cent of Australians believe advice should be accessible to all, while 72 per cent said advice should be priced according to their needs, from simple to complex.
With women being more likely than men to be disproportionately affected by their financial situation, the research noted women (67 per cent) and Australians aged 40–49 (71 per cent) are the most keen for legislative changes from the government that will open up access to professional advice.
