The ABS released their survey of ‘retirement and retirement intentions’, with some very interesting findings.
The Australian government wants workers to retire at 67, but the average retirement age is 58.5 for men and 50 for women, with a combined average of 53.8. What is particularly interesting, however, is that the survey shows a significant number of people in the labour force – almost one in five – aged 45 or over are not planning to retire until at least 70. About half of those surveyed (49 per cent) intended to retire between 65 and 69 years, and 25 per cent intended to retire between 60 and 64 years.
But here’s the kicker – most worryingly, the survey showed that half of those who intended to retire (49 per cent) expected their main source of income to come from superannuation, annuity or allocated pension, but in reality, less than one-fifth of retirees (17 per cent) reported these as their main source of income.
For men, the main source of income at retirement was ‘government pension/allowance’ (51 per cent), with ‘superannuation/annuity/allocated pension’ making up just 25 per cent. For women, the main sources of income in retirement were also ‘partner’s income’ at 44 per cent and ‘government pension/allowance’ at 42 per cent, while ‘superannuation/annuity/allocated pension’ accounted for only 10 per cent.
These figures reinforce once more that if you want to retire comfortably, you HAVE to take control of your future. If you have clients wondering what they can do to change their future, this is a great way to start the conversation and invite them to a Blue Wealth event.