Jenny Wijnen, 69, said she was worried about the cost of retirement and encouraged other Australians to get help. (Source: Provided/Getty)
Australians say the superannuation alone is “not enough” to meet basic retirement needs as the cost of living drives up everyday prices. Australians are being urged to seek help with their superannuation and retirement to avoid being “worse off”.
The superannuation was recently increased to $1,144.40 per fortnight for singles and $1,725.20 for couples, following the government’s indexation. However, 90% of Australians aged 50 and over surveyed by National Seniors and Challenger said that even if they had their own home, this would not be enough to meet their basic needs.
Half of homeowners surveyed believe they need an extra $10,000 a year on top of their superannuation payments to meet their basic needs, while married couples believe they need an extra $10,000 a year to meet their basic needs. An additional $5,000 will be required.
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National Seniors Australia CEO Chris Grice said the superannuation was not enough to cover costs such as private health insurance, heating and cooling costs, car and home maintenance costs.
“This research clearly shows that many older Australians are struggling to reconcile the cost of living with their retirement income,” Mr Grice said.
“It’s not just about making ends meet; it’s about ensuring retirees have the financial security to live with dignity and security.”
The Australian Superannuation Funds Association (ASFA) estimates that single people need $33,134 a year for a reasonable retirement and $52,085 a year for a comfortable retirement, while married couples need $47,731 and $73,337 a year respectively. We estimate that $. This assumes the retiree owns their home outright.
These amounts are below the current superannuation rates of $29,754.40 for a single person and $44,855.20 for a married couple.
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Retirement is “daunting”
Jenny Weinen, a former caregiver, told Yahoo Finance that she retired three years ago and was concerned about how she would finance her retirement.
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The 69-year-old said that despite making additional contributions, her superannuation was limited and she had taken time off from work to give birth to her daughter.
“I was under the impression that I needed $1 million to retire. Being single, I thought I would have to do the same thing in my 70s, but it was a daunting prospect. I’m thinking about it,” she told Yahoo Finance.
“You don’t want that. Most people want to retire while they’re still healthy and don’t want to wait until they’re exhausted.”
Wijnen said her mother gave her an inheritance and the push she needed to seek financial advice. By getting advice about her situation, she found that she could afford to retire sooner than she had originally planned.
Australians urged to seek retirement advice
ASFA research found that 49% of all adults and approximately 40% of people over 65 have not consulted any sources about preparing for retirement.
This could be through your financial advisor, friends and family, online resources, your super fund advisor or the media.
ASFA CEO Mary Delahunty said: “This means that many Australians are left worse off in post-work life than they otherwise would be simply because they have not been given the relevant guidance. That means there is a possibility.”
Mr Delahunty said the cost of obtaining financial advice remained a barrier for the “average working Australian”, with Advisor Ratings noting the average cost could be at least $3,500.
Ms Wijnen said the cost was ultimately worth it for her and urged others to seek advice early if possible.
“After speaking with[a financial advisor]we went through all of my finances and figured out how much I could live on,” she said. “Thanks to this, I can now live a comfortable retirement life.”
Mr. Wijnen currently receives part of his pension from the government. After receiving financial advice, she used her superannuation and savings to set up a guaranteed income lifetime annuity.
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