Financial uncertainty and the need to pay-off mortgages are the main reasons many Australians are delaying retirement well beyond age 55.
In a comprehensive survey of CARE Super members, more than 60 per cent of pre retirees predicted their working life would extend to at least age 65. Almost 50 per cent of the members listed finalising their mortgage as financial priority number one – well ahead of saving for retirement and travel. Starting a family was further down the priority list.
CARE Super Managing Director, Ms Julie Lander, says the survey presents a cautionary tale with almost 70 per cent of respondents admitting that, with the benefit of hindsight, they would have started saving for retirement earlier.
“Our members are telling us that whilst ‘mortgage stress’ in the number one priority in the financial planning of most Australians, they are now recognising the importance of voluntary superannuation contributions,” she said.
“It’s sad that nearly 60 per cent of super members anticipate the need to work way past their ideal retirement age because they feel financially insecure about the future,” Ms Lander continued.
Over half of the survey respondents identified that they would need a post retirement income of $30,000 – $60,000.
However, Ms Lander said she was also concerned about the lack of understanding pre retirees have about what is happening to the money they have invested in superannuation.
“Whilst almost 75 per cent of CARE Super members say they expect continued growth for their superannuation funds during this year, nearly one-third admitted they have little understanding about how their superannuation savings are invested,” Ms Lander said.