Australian workers change retirement attitude: AXA

Australians have changed their attitude towards their financial futures with 34 per cent of workers now having a good idea of their projected retirement income, the 2007 AXA Retirement Scope study has revealed.

The study, released today, found Australian workers’ interest in their financial futures has increased, with this year’s figure of 34 per cent almost double last year’s figure.

AXA general manager sales and marketing Adrian Emery said the study indicated a shift in attitudes among Australians towards understanding the importance of planning for retirement early.

However, two-thirds of working Australians still do not have a good idea of what their retirement income will be.

“The key for these Australians is to have a plan, and the good news is that seven in 10 working Australians have already started to prepare for their retirement — and are doing so at an average age of 31 years old, almost a decade earlier than their retired counterparts, who began at 41. This is a significant breakthrough, as just two years ago Australians who were preparing for retirement did not begin to do so until they were 36 years of age,” Emery said.

“Australians need to be aware that the best way to guarantee the retirement they dream of, is to take charge of their own future and seek quality financial advice,” he said.

The study found working Australians are currently saving an average of $652 per month towards their retirement, ranking them the second highest retirement savers in the world just behind workers in the United States. And Australians are equal first with Hong Kong residents in regards to accepting individual responsibility for retirement financing.

The study also found Australian workers’ expectations of retirement are far different from the reality they face. It revealed that more than 60 per cent of working Australians expect to hold a job in retirement, however less than 10 per cent of retirees are currently working.

“When asked how they will fund their retirement, 52 per cent of workers said that superannuation would be their major source of income. Meanwhile, 27 per cent of today’s retirees currently rely principally on super, and over half depend on a Government pension for the majority of their income,” Emery said.

“The research also showed that on average, working Australians believe they would be ‘fit to work’ until 67 years of age, and believe they are not ‘old’ until 73, while today’s retirees, having experienced retirement, don’t see themselves as old until 79.

“Interestingly, over 90 per cent of workers and retirees consider those aged over 65 would make good employees,” he said.

The AXA Retirement Scope is a landmark study, measuring the expectations and experiences of retirement from 11,373 interviews in 16 countries including Australia, France, Germany, Hong Kong, Italy, Japan, New Zealand, Spain, UK, USA and, for the first time, China. The study is in its third year.