Approximately 5.3 million of Australia’s Baby Boomers will move into retirement over the next 15 years but are they financially prepared to clock off?
Apparently not.
Figures released by REST Industry Super reveal that just one in seven baby boomers believes their finances will enable them to successfully retire.
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The data, reported by News Ltd publications, is alarming with 35 per cent baby boomers reported to be completely unprepared to hang up their boots and 51 per cent being only slightly ready.
According to an estimate by The Association of Superannuation Funds of Australia, funds needed for retirement are estimated $56,236 a year for a "comfortable lifestyle" for a couple and $41,090 for a single person.
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The results found 70 per cent of baby boomers had not sought financial advice when working out a retirement plan.
"There's a worryingly low understanding among baby boomers about the cost of funding retirement. Almost half believe they won't have to give anything up come retirement due to financial constraints, so there's quite a gap in wants versus actuality there," REST chief executive officer Damian Hill was quoted as saying.
In Australia, the baby boom period describes the increase in the total birth rate following World War II, specifically between 1946 and 1965. Baby boomers are aged between 46 and 65 years in 2011.
As well as constituting the majority of the aging population over the next 30 years, baby boomers are a significant element of the consuming public.
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Their consumption patterns and preferences will have important implications for the Australian economy.Numerically, older people will represent a consumer group with a sizable aggregate purchasing power capable of driving market innovation and development.
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15 Comments
In some areas of Australia house prices have fallen substantially, I live on the Gold Coast and some properties have fallen as much as 50%, and 20% is very standard. It' envisaged that house prices are not going to grow significantly over the next few years and contrary to some views, this is a great thing. We need to have more affordable housing for all.
2 RepliesWhy why why does government allow export of mega-wealth to Swiss bank accounts. Rio pays a total of 700 million to native title holders ( after a lot of Rio whinging about it), then albanese loses 14 BILLION in Africa while trying to undermine working conditions in Australia !!!!! Get out of coal people's .. it is going down.
1 ReplyWhen are people going to wake up to this scam, probably never. Try this on for size, what will happen to the value of your super when all the baby boomers decide to cash in. It all looks good on paper and thats all it is paper, anything is only worth what someone else is willing to pay for it and when you all start selling you will then realise how much you have been scammed. Enjoy people.
ReplyFirstly, income tax USED to be to pay you the pension when you retired. Now it's not. Secondly, what about the number of men who lost half their money to short-term relationships (less than 5 years) who were "divorced" by their partners (who they didn't marry)? I know a few guys in their 60s who did all the 'right' things financially who can't afford to retire after their ex-partners left them when they had to take out mortgages on the houses they'd paid off in their 40s/50s. Imagine having a $300k-$400k mortgage in your 60s!
2 RepliesWell we pay exorbinant taxes whilst part of the work-force and then the Government and employers trash us when we are deemed to old and of no significant ecconomic use. Oz is lucky for some but a very low sum. I will probably have to live out my retirment in China.
3 Replies