One-third of clients not on track to achieve comfortable retirement
Financial planners have estimated a third of their clients were not on track to achieving a comfortable retirement, according to a survey released by Investment Trends.
According to the December 2011 Retirement Planner Report, financial planners anticipate 33 per cent of their clients aged under 75 will be dependant on the Age Pension for more than half of their income when they retire.
By the time they reach the ages between 84 and 95, Age Pension would make up 54 per cent of their income, said Investment Trends senior analyst Recep Peker.
"In light of this, it is not surprising that in 2011 planners advised 69 per cent of their pre-retiree clients to contribute more to their superannuation, 26 per cent to retire later and 13 per cent to downsize their home," Peker said.
"Most planners are not shy of recommending the tough strategies required to help their clients get closer to their retirement goals," he added.
However, Australians who use a financial planner are more likely to feel on track to achieving their retirement goals.
"The proportion of those who don't feel on track is 19 percentage points higher at 42 per cent among those who don't use a planner," Peker said.
The Investment Trends report, which was based on a survey of 1,027 financial planners, also found that they are now providing more financial advice on retirement-specific needs.
AUTHOR
Staff Writer
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
