Australians not planning for retirement
We all daydream about retiring - what we’ll do, where we’ll live, how fabulous it will be not to have to go to work? The problem is how many of us take the time to make those daydreams realities?
According to Roy Morgan Research: “56.7 percent of 22 to 24 year olds feel that retirement is too far away to plan for, and just under a third (31.4 percent) of 35 to 39 year olds still believe they are too far from retirement to plan."
Making a conscious decision not to save into your super and so take advantage of how much this can add to your final retirement amount, seems very short-sighted.
In the critical pre-retirement years of 50 to 54, 16.6 percent still consider retirement as being too far away to bother about planning.
The worrying outcome for a large number of Australians is they will not have adequate superannuation or other investments to fund their retirement. An outcome that is not good for them and the country.
Run the gender lens over this scenario and the situation for women is even more desperate. A vast proportion of us will retire into poverty. We live longer than men and yet have less in our coffers due to life stage decisions, which exclude us from workforce participation at various times, chiefly if we are the primary carers in the family, as well as poor financial planning.
Planning for the future can support you to make better long-term financial decisions.