Opportunities abound for both superannuation funds and financial planners as Australians grow increasingly concerned about their retirement prospects, according to the latest research from Investment Trends.
The research, released today, reveals only 44 per cent of Australians over the age of 40 felt prepared for retirement, down from 49 per cent in 2015. More alarmingly, it found that 51 per cent of those already retired expected to outlive their retirement savings, up significantly from 33 per cent in 2013.
Commenting on the research, Investment Trends senior analyst, King Loong Choi said Australians’ confidence about their retirement had deteriorated significantly over the past few years.
“The ability to accumulate sufficient wealth, potential falls in the share market and regulatory changes to the superannuation rules are all contributing to Australians’ growing angst about their retirement future,” he said.
Asked what level of income they would need in retirement, half of working Australians said at least $3,000 per month to have a comfortable lifestyle, yet only one in three currently feel they would be able to achieve this.
The research also found that two in three working Australians recognised they needed to turn to financial professionals to help them reach their retirement goals and that these Australians were most inclined to first turn to either a financial planner or their super fund for this help.
“Super funds and financial planners are best placed to inform, educate and advise Australians on their retirement finances,” Choi said. “While retail funds have been top of mind for Australians’ retirement needs, the concerted effort from industry funds over the last few years in strengthening their retirement proposition has made them serious competitors for Australians’ retirement monies.”