The ideal retirement is a pipe dream for the majority of Australia’s 4.7 million pre-retirees amid rising living costs and retirement income expectations, new research from CoreData has revealed.
CoreData’s 2016 Post-Retirement Report, which examines retirement attitudes and intentions among Australians aged 45 and older, found that pre-retirees expect to need an average of $1,224 a week in today’s dollars (up from $1,124 in 2015 and $1,015 in 2014) and a super balance of $804,559 to maintain their desired lifestyle in retirement.
However, the majority (53.1%) think it is unlikely they will achieve this goal, up from 39.5% in 2015 and 36.1% in 2014.
To manage the risk that they will outlive their savings and the impact of rising living costs, the vast majority (81.2%) of pre-retirees plan to keep working in some capacity after they retire from full time work.
The average superannuation balances at retirement of $292,500 for men and $138,150 for women fall well short of the $800,000 balance the average pre-retiree expects they’ll need.
Annuities have long been touted as the panacea to managing longevity risk – offer retirees a guaranteed income stream regardless of what happens in the markets