With inflation pushing living costs higher, planning for the future continues to be a major concern for older Australians, according to new research by Challenger in partnership with National Seniors Australia.
The National Seniors Social Survey of 4,700 Australians aged over 50 revealed that many respondents feel as though they lack the appropriate information to help navigate retirement.
However, financial advice continues to be associated with positive outcomes for Australians in this age bracket, with 41 per cent of respondents – who had already received financial advice – said to be more likely to feel financially comfortable, to be retired, and own their home outright.
“However, barriers for Australians in seeking financial advice remain, with cost, perceptions about the independence of advice and difficulty finding an appropriate adviser who meets their needs the main obstacles,” Challenger said.
Chris Grice, chief executive of National Seniors Australia, highlighted these factors amid the growing concerns among seniors that they don’t have the appropriate support to plan for retirement.
“We found that calculating aged care costs was the topic most people wanted financial advice about. Older Australians feel anxious about the prospect of needing aged care and the unknown costs associated with it,” Grice said.
“We must ensure seniors are not left to navigate these challenges alone, without adequate guidance or resources.”
Of those who hadn’t received adequate advice, 42 per cent said they wanted to know more about aged care cost calculations, followed by investment options (34 per cent), and options to balance spending and saving (22 per cent).
Close to half (46 per cent) of those surveyed also conveyed an interest in a lifetime income option for at least some of their retirement income.
According to Challenger, this compares to less than one in 10 Australians who currently have a guaranteed income stream, either directly through an annuity or as part of their superannuation.
At the same time, a fifth of respondents said they didn’t have enough savings to consider guaranteed income as an option.
“Lack of awareness and understanding about retirement income options has been a real challenge for Australians in or approaching retirement,” said Aaron Minney, head of retirement income at Challenger.
“Our customer research tells us guaranteed income provides peace of mind and significantly increases retirement happiness.
“Having a portion of your savings guaranteed to last a lifetime, brings an unparalleled sense of security. This is especially true in an environment of high and variable inflation and share market volatility, with retirees increasingly looking for ways to maintain their lifestyle and ensure they can enjoy their golden years without the risk of running out of money.”
Expounding on this, Minney underscored the importance of older Australians having avenues to access advice so that they may use their savings to live life to the fullest, at every stage in retirement.
“We’re living longer and it’s essential for retirees to plan for 30 years or more in retirement. With the right guidance, we can ensure that people are financially prepared for aged care when they need it, and can enjoy an active retirement, knowing they are ready.”
