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The Colonial First State (CFS) “Rethinking Retirement” report surveyed 2250 Australians and highlighted fewer retirees felt they could live comfortably during their golden years.

The annual report found 64 per cent of retirees were able to enjoy a comfortable retirement, down from 71 per cent a year ago, while among those yet to retire, 54 per cent did not see themselves achieving a comfortable retirement, with this increasing to 57 per cent for those over 50.

The cost of living remained a top concern for retirees, with 76 per cent stating their pension payments were being absorbed by essential outlays, such as on groceries and utilities.

Additionally, 22 per cent of retirees were servicing debt with pension payments, with this figure increasing to 30 per cent among those who do not own a home.

CFS superannuation chief executive Kelly Power said challenging economic conditions were prompting more Australians to reach out for help.

“The cost of living has shaken confidence in retirement expectations. However, it has also led to more people engaging with their super and seeking assistance with retirement planning,” Power said.

She noted the report found 41 per cent of Australians had reviewed the performance of their super, up from 36 per cent last year, and 28 per cent had sought advice from their fund, up from 23 per cent last year.

Australians who received financial advice were far more optimistic, with 85 per cent saying they felt on track for retirement, compared to 47 per cent of those without advice.

“The findings once again highlight the positive impact of financial advice, with those who receive advice twice as likely to feel financially prepared and on track to reach their retirement goals,” Power said.

The report found 70 per cent of respondents were interested in receiving information from their super fund on goal setting and 72 per cent would be happy to share their financial goals with their fund.

February 24, 2025
Lara Caughey
smsmagazine.com.au