Retirees win out in Australia

inflation retirement super Natixis

16 September 2022
| By Laura Dew |
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2022 could be one of the worst years in recent memory for people to retire but Australia ranks among the best countries to do so, sitting in the top five globally.

The Natixis Global Retirement Index, now in its 10th year, examined the factors that drove retirement security as well as the indicators to enjoy a secure retirement such as access to quality financial services and access to health services.

Australia ranked among the top five countries to retire securely, up from seventh in 2021, and scored fourth for finances in retirement and ninth for health services. New Zealand was in sixth place and Natixis noted it was up from 34th a decade ago.

Louise Watson, country head for Australia and New Zealand at Natixis Investment Managers, said: “The compulsory nature of Australia and New Zealand’s super industry creates a strong base from which government and investors can continue to partner to build progressive retirement systems. But investors need to be proactive and ensure their superannuation is best positioned to deliver long-term investment outcomes”.

The report also noted the top 10 mistakes made during retirement planning, topped by underestimating the impact of inflation. This was particularly important as inflation had been steadily rising and was expected to peak in Australia at 7.75% in the December quarter.

Watson said: “Inflation impacts asset classes in different ways with interest bearing securities and those investors who are retiring this year, most affected. But we know superannuation is a long-term investment proposition, and through investment diversification and strategic asset allocations, investors can look to minimise these impacts and safeguard their retirement nest eggs.” 

Other problems included underestimating life expectancy, overestimating investment income, being too conservative and setting unrealistic expectations for returns.

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