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?
Figures released by REST Industry Super reveal that just one in seven baby boomers believes their finances will enable them to successfully retire.
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.
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.
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.