According to Mortgage Choice’s Diversified survey, 65 per cent of Australians said they worried they would not have enough money in retirement.
According to the Association of Superannuation Funds of Australia, couples will need approximately $640,000 in savings, while single people will need approximately $545,000 in order to live a comfortable lifestyle in retirement.
However, Mortgage Choice’s research found that more than half (54 per cent) of people will not give their retirement “serious thought” until they reach the age of 50 (or older).
Mortgage Choice chief executive officer John Flavell commented: “Over the coming years, statistics suggest that many Australians will reach retirement age and still have a mortgage. Soaring property prices combined with the fact that people are taking out home loans later in life, will ensure many still have debt in their twilight years… which can have a significant impact on their savings and cash flow.
“When you consider how much money Australians will need in order to retire comfortably, it is little wonder why it is so important to start the planning process early,” he added.
Mr Flavell said that while he understood how planning for retirement may seem like an unnecessary task to those in their 20s or 30s, he noted “with people living longer than ever and therefore needing more money in retirement, it’s important to be financially prepared for your twilight years”.
He concluded: “As the old adage goes: don’t put off ‘til tomorrow what you can do today.
“Australians should seek out financial advice early on in their financial journey, and put strategies in place today that will help them achieve their financial objectives and lead a comfortable retirement.”
Annie Kane is the editor of Mortgage Business.
As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also a regular contributor to the Mortgage Business Uncut podcast.
Before joining Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.