Financial Wellbeing: Concerns and choices among older Australians
Older Australians face a range of risks that can impact on their financial security in retirement. How much does a retiree need for future expenditure?; if they live longer than expected will the money set aside be sufficient?; will their funds keep up with costs of living?; and how can one reconcile the need for investment growth with requiring certainty of income and spare funds for emergencies?
To better understand the financial risks and concerns facing older Australians, their wellbeing, and their attitudes and choices, a survey of National Seniors Australia members was conducted in 2010, run jointly by ANU, Rice Warner Actuaries and AMP.
The survey examined the influence of demographic factors and financial resources on their needs and preferences. Among other things, the survey revealed the following:
Close to 70 per cent of National Seniors retirees surveyed rely, partially or fully, on the Age Pension. The greatest concern, particularly amongst women, is that inflation may erode the value of their savings and investments. Almost 50 per cent of workers have, or intend to, delay their retirement in order to provide greater financial security. It is the youngest (55 year olds) and oldest (85 year olds) members in the survey who tend to least understand the relationship between investment choices and risk.
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