Why millions believe the once-great Australian dream now out of reach
Updated . First published at
Retirement seems like a far-fetched dream for millions of Australians, new research has revealed.
A survey by Finder found that 17 per cent of working Australians believe they’ll never have enough money to stop working.
Millions of Australians believe they won’t be able to comfortably retire on schedule. olaser
And another 12 per cent expect to work part-time later than they planned to make ends meet.
Combined, that adds up to 4.2 million Australians who think they won’t be able to retire when they want to.
Finder money expert Richard Whitten said many were worried their super balance would not be enough to fund a comfortable retirement.
“A significant number of Australians are expecting retirement to be about getting by, not living well,” he said.
“Instead of picturing years of freedom after decades of work, many are bracing for a longer working life or resetting expectations of what retirement will look like.”
Nearly a quarter of respondents (24 per cent) believed their super would provide just enough to cover the bare essentials.
About 32 per cent said they expected to be able to travel occasionally but would still need to squeeze every dollar.
Just 16 per cent of respondents believed they would have enough super to travel the world and enjoy retirement with few financial limitations.
Whitten said the choices people make well before they retire could shape the lifestyle they end up with.
“Retirement might feel like a long way off, but the sooner you start paying attention to your super, the more room you have to build your balance before you need it,” he said.
People are urged to review their super during their working life. iStock
"Simple steps like comparing super funds, consolidating multiple accounts, reviewing your investment option and making extra contributions can add tens or even hundreds of thousands of dollars to your balance by the time you retire.”
Whitten said Australians shouldn't assume their current super balance will automatically deliver the retirement they want.
“Rising living costs only make retirement more expensive. Australians can’t afford to neglect their super while they’re working,” he said.
"Retirement isn't only about leaving the workforce, it's about having the freedom to spend time with the people you love, travel, chase your interests and enjoy what you've worked hard to build.
“Taking a few minutes each year to review your super could mean the difference between simply surviving and genuinely enjoying your retirement."
Share a tip-off, video or photo with us
