Australians Retiring Later!

The average age of Australians intending to retire in the next 12 months has gone up from 58 to 61 years while the number of people with the intention to retire has decreased. Changes in pension eligibility, superannuation rules and economic uncertainty are valid reasons for these trends.

This increase in retirement age is a win for the government and superannuation funds, as it means both government and superfunds will pay out less. The downside is that it may increase unemployment, with older workers occupying positions younger people might otherwise have filled.

According to a recent Roy Morgan Single Source survey, superannuation is playing an increasing role in retirement funding. However Norman Morris, Industry Communications Director, Roy Morgan Research says the average level of savings and superannuation for those intending to retire in the next 12 months is well below the new age pension asset eligibility levels announced recently by the Australian Government.

Mr Morris believes the government needs to play a greater education role to enable well informed retirement funding decisions, highlighting superannuation is a very long-term investment which is made more difficult by regular rule changes.

Source ‘Age of intending retirees goes up’.

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