Retirement can be filled with all sorts of new freedoms and experiences. However, this new phase is not without its anxieties. Research just out by UniSuper shows that over 90% of Australians have some concerns about retirement, and fewer than 10% feel their retirement is completely stress-free.
A significant source of this anxiety is financial uncertainty. Nearly half of all working Australians (45%) feel they are not financially prepared for retirement, and a similar number (48%) don’t know how much money they will need. A substantial 68% of Australians also worry about outliving their savings. This “fear of running out” can lead retirees to live and spend too cautiously, denying themselves the joys they worked so hard to achieve.
And the worries aren’t just about money. Many people are concerned about the non-financial aspects of retirement. The UniSuper survey found that 61% of working Australians worry about losing social ties from the workplace when they retire. Losing a sense of purpose and identity is also a key concern, which is why 81% of working Australians plan to continue working in some form, such as through a new job, volunteering, or hybrid work.
The financial anxieties often stem from the unasked and unanswered questions that can create significant stress. Questions such as:
- ‘Do I have enough to retire?’, ‘
- ’How can I make my savings last?’, and
- ‘Will I qualify for the Age Pension?’
can feel overwhelming. The good news is that these questions can be answered, and the fear can be replaced with clarity and confidence.
Relief for retirement anxiety
Consumer research shows that advice is the best antidote for retirement anxiety. The UniSuper data shows a critical link between seeking advice and retirement confidence. Around two-thirds of working Australians (66%) who have received financial advice feel confident about how much money they will need in retirement. This is in stark contrast to the 77% of pre-retirees who have not sought professional help and don’t feel prepared. For those who have already retired, 71% of those who received advice felt confident about their next phase of life, and 68% knew how much money they needed for retirement.
The problem has been that traditional financial advice has become just too expensive for most people. It’s typical to pay $4000 to $5000 for a financial plan, and that’s just the first year. No wonder that only a small fraction of Australians have had retirement advice.
This is where services such as Retirement Essentials Advice Consultations can make a significant difference. By providing easy and affordable access to financial guidance, we help people put a plan in place to face retirement with confidence.
Retirement advice isn’t about prescribing a one-size-fits-all solution; it’s about helping you understand your specific circumstances and answering your questions; showing you how to get started with your planning and making complex rules easier to understand. A key component is using tools, such as the sophisticated Retirement Forecasting engine, to model how long your savings are likely to last – in good and in bad market scenarios – and to project how your super, the Age Pension, and other income sources can work together to provide a sustainable retirement income.
For most Australians, a satisfying retirement is achievable. The combination of your superannuation and the Age Pension provides a solid foundation for a satisfactory lifestyle. The key is to get a clear picture of your situation and to understand your options. Rather than living with the pressure of getting everything ‘perfect’ immediately, a consultation can provide a clear plan that can be adjusted over time. By getting your questions on the table and having them answered, you can replace worry and uncertainty with confidence and peace of mind. The right advice can help you navigate this transition on your own terms and embrace the many opportunities that retirement brings.
Most fear is based on assumptions about things that never actually happen. Financial fears are often based upon erroneous assumptions about income and spending levels. Facing the facts of your financial situation is a necessary first step to reducing your concerns through a clear understanding of not if, but how, your retirement savings will last.
Retirement Advice Consultations are priced at $395 for a 55-minute video call with an experienced financial adviser who can share ‘real time’ projections of your retirement income including Age Pension entitlements, super withdrawals and work income. Knowing these projections is the best next step towards financial peace of mind.
What’s your attitude towards advice?
Have you forecast your own income across your full retirement journey?
