New research provides important lessons to advisers.
A new survey has revealed that while Australians are better prepared for retirement than Americans, there are still some financial clouds on the horizon.
The Australian Retirement of Retirement Survey, a joint initiative between Putnam Investments Australia and PortfolioConstruction Forum, surveyed 177 Australian financial advisers and compared the results to a similar study undertaken in the US.
In the Australian study, nearly all advisers surveyed said their clients’ investment behaviour and attitudes had improved in recent years, showing that financial education was proving effective for investors.
However, when comparing the two pieces of research, Putnam director of market planning and development Beth Segers said similarities were present that advisers could learn from.
“There are a number of trends we are experiencing now in the US that may provide lessons for Australian planners and their clients,” she said.
“The most significant of these is family obligations — American baby boomers are particularly generous when it comes to their parents.
“In Australia, less than 25 per cent are providing aid to their parents or adult children, although it seems that there is some growth in the number spending money on their grown children.
“For example, there is anecdotal evidence that more adult children in Sydney are living at home.”
Segers said very few pre-retirees factored in how much money they would need to continue those kinds of responsibilities in retirement and that the US experience, where people were returning to work in order to meet expenses, should be heeded by Australians.
The Australian research also showed that advisers felt they had a way to go with effectively discussing estate-planning and aged care with clients.
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