Retirees have more confidence in their super

Retirees are feeling more confident about their retirement income as a result of improving returns from their superannuation, a new report has found.

The 2nd Seniors Sentiment Index released by National Seniors and commissioned by Challenger, gauged 2000 older Australians’ views on different aspects of their life as well as their views of society as a whole.

The overall Seniors Sentiment Index increased from 66 per cent in 2012 to 72 per cent in 2013, reflecting growing positivity from seniors about their finances, health and social wellbeing.

Chief executive Michael O’Neill said the number of retirees who were confident that their superannuation would be adequate in retirement increased from 44 per cent in 2012 to 61 per cent in 2013.

“This is a result of sustained recovery in equity markets and a rising share market producing better returns,” O’Neill said.

But while confidence in retirement income had increased in the past 12 months, senior Australians were not so optimistic about their financial wellbeing over the next five years.

“It’s hard for retirees to have long-term confidence in their super when so much of it is at the mercy of share market cycles”, said Challenger spokesperson Paul Rogan.

“Government and industry must work together to deliver better super outcomes for our people once they’re retired and living off their savings.” 

In the social wellbeing stakes, the report found a notable increase in satisfaction with the Australian political landscape, with those ‘at least somewhat satisfied’ increasing from 21 per cent to 30 per cent.

The 2nd Seniors Sentiment Index follows the inaugural Seniors Sentiment Index which was released in December 2012. Read the full report here.

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