Being unable to support their desired income, outliving retirement savings and being unable to meet the cost of medical treatment in retirement are amongst the main concerns for those approaching retirement according to surveys conducted this year.
The Australian Government Treasury’s 2022 Retirement Income Report also indicates that there has been a significant fall in the confidence levels and preparedness of those approaching retirement.
Inflation, interest rates and sharemarket returns over the past 12 months have resulted in 47% of non-retirees surveyed expecting to outlive their retirement savings. Of significant concern is the estimate that retirees will have $1,000 per month less than they want in retirement. That is a significant impact on lifestyle.
Further, the MFS Global Defined Contribution Participants Survey showed that compared to other countries Australians have the lowest confidence levels in being able to retire at their desired age and having enough retirement savings to outlive them.
This fear of not having enough money to retire is driving non-retirees to seek retirement-related information and wanting to be better prepared. As shown in the Value of Advice index (Financial Planning Association, October 2022), clients who engage a professional financial adviser are significantly more likely to feel financially secure than those who don’t receive advice.
Our team at Magnify Wealth specialises in assisting pre retirees to plan and implement strategies to maximise returns and lower the risk of a retirement income gap as well as maximising the likelihood of your assets outlasting you.
If you are within 10 years of your desired retirement age, there is still time to get the right advice. Contact the Magnify Wealth Team today on 07 46 888 000 to discuss how we can help create a life well lived, to last.