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Australians can improve their retirement confidence through everyday activities and habits such as planning and goal setting, the super fund says.
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Less than half of Australians confident about retirement: AustralianSuper
12 August 2024
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Less than half of Australians are confident they will live well in retirement from their superannuation savings, according to research conducted by AustralianSuper.
AustralianSuper said retirement confidence can be boosted through simple daily habits such as planning and goal setting, saving money and paying off bills.
According to key insights from the Retirement Confidence Study, which included more than 5,000 participants, retirement confidence is directly related to effective planning and money management.
AustralianSuper chief officer Shawn Blackmore said the organisation is focused on changing the Australian perspective towards super.
“Everyone’s retirement journey is unique and we want Australians to feel confident as they approach this important stage of their lives,” he said.
Data from the survey highlighted 50 per cent of people who pay off monthly bills such as rent, credit cards and loans are more likely to feel confident about their retirement than the 18 per cent who don’t.
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In relation to this, 59 per cent of Australians who consistently save small amounts of money are more likely to feel secure in their retirement than the 17 per cent of people who don’t.
Twenty-six per cent of people who don’t have defined goals don’t feel confident about their retirement.
AustralianSuper said this is a sharp contrast to 67 per cent of people who do have defined saving goals and feel confident about their retirement and superannuation fund.
Blackmore emphasised the importance of the survey results and understanding how to address the attitudes of those who do not look at their superannuation and retirement positively.
“Interestingly, the most influential driver of retirement confidence is goal setting and planning, with effective money management being the second most influential factor,” Blackmore said.
“We understand the unknown can by daunting but with the right plan in place, Australians can feel more reassured they’ll live well in retirement.”
The study also highlighted retirement confidence can be boosted by discussing plans with another person rather than keeping the information private.
People who have been directly impacted by cost-of-living pressures are also not as secure in their retirement super fund than those who have been mostly unaffected.
Additionally, results demonstrated men are more confident than women for their retirement and ACT residents are the most confident in their superannuation, with Northern Territory residents the least confident.
To address the lack of confidence in retirement super, AustralianSuper outlined tips that included starting conversations about retirement plans and goals with surrounding friends and family and being proactive in setting clear and achievable goals by determining what funds are needed for retirement.
AustralianSuper also recommend easing into retirement by gradually reducing work hours and transitioning to part-time work before fully retiring.
Creating and sticking to a budget will also aid in the visualisation of a healthy retirement super fund, AustralianSuper said.
Seeking professional advice will lead to well-informed decisions and a solid plan to maximise retirement savings and investments.
Blackmore said he wants Australians to confidently move from a lifetime of saving for retirement to confidently spending their “hard-earned” money when and how they wish to.
“This research helps us better understand the support Australians need when it comes to retirement so we can boost their confidence by providing the right information, guidance and advice at the right time,” he said.
“Moving into retirement can seem daunting and we know people are worried about not having enough money but there is help available and as this research shows, making simple changes in your daily financial routine can deliver positive outcomes.”
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