Only one in three Australians aged over 40 have sought financial advice on their future aged care needs, while most retirees expect to outlive their savings, according to the latest data from Investment Trends.
The global company revealed yesterday the results of its 2016 Retirement Income Report, which surveyed 6,987 Australian consumers over the age of 40.
It found a significant jump in the number of retirees who are not confident they have enough savings – 51 per cent, up from 33 per cent in 2013.
“Australians’ confidence about their retirement has deteriorated significantly over the past few years,” Investment Trends senior analyst King Loong Choi said.
“The ability to accumulate sufficient wealth, potential falls in the share market and regulatory changes to the superannuation rules are all contributing to Australians’ growing angst about their retirement future.”
The need for superannuation funds to take a more proactive role in educating consumers well before retirement about the costs of aged care was also identified in the report.
“Super funds and financial planners are best placed to inform, educate and advise Australians on their retirement finances,” Choi said.
“Retirees who have used a financial planner allocated nearly twice as much of their savings to retirement income products than retirees who have not used a planner.”
“The unadvised, in the meantime, have spent four times more of heir retirement nest egg on lifestyle expenditure such as renovations, holidays and new vehicles (car, camper or boats) than planned retirees,” he said.
Many people are also unprepared for costs associated with aged care, with only one in three Australians say they either have or intend to seek more information on aged care, most often planning to turn to government services or medical professionals for this.