Retirement confidence can be boosted through simple daily habits such as planning and goal setting, saving money and paying off bills, according to new research conducted by AustralianSuper, the country's biggest superannuation fund.
Key insights from the Retirement Confidence Study, which surveyed more than 5,000 Australians, highlight the significant impact of effective planning and money management on retirement confidence. The survey finds that less than half of Australians (46%) are confident that they will live well in retirement.
However, those who pay off monthly bills, such as rent, credit cards, and loans, are more likely to feel confident about their retirement (50%) than those who don’t (18%). Similarly, those who consistently save money for the future, even a small amount, are more likely to feel confident about retirement (59%) than those who don’t (17%).
The study shows that 67% of people with clearly defined savings goals feel confident about living well in retirement, in sharp contrast to 26% of those without these goals.
Discussing retirement plans with a partner, family member or friend also boosts confidence (63%) compared to not sharing (28%).
The study also highlights the impact of cost-of-living challenges on retirement planning. Individuals who reported being unaffected by these challenges were significantly more confident (70%) than those who reported being impacted (32%).
AustralianSuper’s chief officer of retirement Shawn Blackmore emphasised the importance of the Retirement Confidence Study in understanding and addressing attitudes, behaviours, and financial drivers that help Australians live well in retirement.
“Interestingly, the most influential driver of retirement confidence is goal setting and planning, with effective money management being the second most influential factor. We understand the unknown can be daunting but, with the right plan in place, Australians can feel more reassured they’ll live well in retirement.”
“Everyone’s retirement journey is unique, and we want Australians to feel confident as they approach this important stage of their lives,” he said.
Overall, those who received financial advice — whether professional or from attending seminars, webinars, or doing desktop research — were 50% more confident than those who didn’t.
Similarly, Australians who are more engaged with their super, such as making additional contributions (58%), reviewing their annual statement (56%), and checking their balance (50%) are more confident than those who did none of those things (36%).
“This research helps us better understand the support Australians need when it comes to retirement so we can boost their confidence by providing the right information, guidance, and advice at the right time,” Mr Blackmore said.
The study also found differences in retirement confidence across various demographics. Men tended to be more confident, with 53% believing they would live well in retirement, compared to 39% of women. ACT residents are the most confident at 57%, while those in the Northern Territory are the least confident at 39%. Retirement confidence in metro areas (47%) and rural areas (44%) is not distinctly different.