Investing.com - Australians believe they need more than A$1 million ($718,450) to retire comfortably, an increase of A$183,000 in 12 months, according to new research from Colonial First State. The annual survey by one of Australia’s largest pension and wealth managers found inflation and rising living costs are driving concerns about running out of money after leaving the workforce.
The survey of almost 2,000 people found Australians aspire to retire at 62 but expect to work until they are 66. "The cost of living continues to increase, inflation has spiked significantly and then there’s many other factors of family and supporting others that Australians are going through," CFS Executive Director for Retirement and Growth Marissa Powe said in an interview to Bloomberg. "People are getting more engaged with their super, they’re seeing their balances and they’re trying to figure out ’how long will this last me?’"
The survey adds to data showing Australians are anxious about their finances after stopping work, even as the country’s A$4.5 trillion pension industry ranks among the top global retirement systems. With 2.5 million Australians expected to enter retirement over the next decade, the industry faces pressure to provide more options for people when they begin drawing down their pension savings.
Australia’s trimmed mean gauge of annual consumer-price growth, which shaves off volatile items, accelerated to 3.4% in April, above the Reserve Bank of Australia’s 2%-3% target band. The country was grappling with high inflation even before the Iran war.
The survey found women are more likely to experience retirement-related stress, with about 62% worrying they won’t have enough money to live comfortably at that stage, compared with 48% of men.
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