Over 50s face up to financial concerns in retirement
25 November 2016
St.George research indicates the financial habits of older Australians are changing
More than one in three older Australians do not feel they have enough money set aside for retirement and over three quarters have never received professional financial planning advice, according to new research commissioned by St.George Bank.
The survey of 1000 Australians aged 50 to 75 reveals that having financial security in retirement is their biggest concern, with only just over one-fifth feeling on track for a comfortable retirement.
Despite this, 26% of respondents confess they have never reviewed their financial plan and another 24% only review their plan once a year. For the one-quarter of respondents that have sought professional financial advice, over half of those spoke to a financial adviser, while one-fifth spoke to their superannuation fund and 14% to their bank.
Ross Miller, General Manager of St.George Retail Bank, said the research findings were a reminder to those over 50 to continually evaluate their financial plan so they can live a full life with security in retirement.
“It’s eye-opening to see only one quarter of respondents have sought professional advice, despite the research signalling that older Australians are more worried about their financial security in retirement than they are about their health, losing independence, or maintaining a sense of purpose.
“With more than 40% of our customers over the age of 50, we know their lifestyle priorities and spending habits are rapidly changing and financial planning should reflect that. We understand retirement doesn’t necessarily mean a retirement home and we’re here to help older Australians plan for a future that suits their individual needs.
“We’re working on a range of solutions to help make planning for retirement easier. I encourage customers to come into a St.George branch to start the conversation with a banker about their financial health,” said Ross.
Summary of key findings
- 27% of respondents do not feel on track for a comfortable retirement
- 9% of respondents do not feel on track for a comfortable retirement, but do not plan to retire for some time
- 42% of respondents said they may be on track for a comfortable retirement but would like to have some more money set aside
- 22% of respondents said they are definitely on track for a comfortable retirement
- 73% of respondents have never received professional financial planning advice
- Of those who have sought advice (27% of respondents), 55% went to a financial adviser, followed by a super fund (21%) and a bank (14%)
- 26% of respondents confess to having never reviewed their financial plan while 24% review once a year, and 22% once every six months
- Financial security was ranked as the biggest concern in retirement, followed by health issues and losing independence, maintaining a sense of purpose, and estate planning
For more information about planning for over 50s, please visit https://www.stgeorge.com.au/personal/life-moments/approaching-retirement.
About the research: Conducted by Pure Profile in August 2016, 1000 respondents aged 50-75 were surveyed across Australia.
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