Are you worried you won’t be able to maintain the same quality of life in retirement as you have now? If so, you’re not alone. But it doesn’t have to be such a scary proposition.
By adopting a few simple daily habits now, you can make life after work much easier – and be a lot more confident in your future retirement.
The Retirement Confidence Study, conducted by AustralianSuper, surveyed more than 5000 working Aussies and found less than half (46 per cent) felt confident they would live well in retirement.
Perhaps not surprisingly, the survey showed those who practised daily financial habits such as planning and budgeting, goal setting and putting aside regular savings were more likely to be confident in their retirement.
Shawn Blackmore, AustralianSuper chief officer of retirement, says the study shows just how important your financial habits today are for your confidence in tomorrow.
“Interestingly, the most influential driver of retirement confidence is goal setting and planning, with effective money management being the second most influential factor,” he says.
“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.”
It’s the little things
The survey shows those who regularly pay off monthly bills, such as rent, credit cards and loans, are more likely to feel confident about their retirement (50 per cent) than those who don’t (18 per cent).
Similarly, those who regularly set aside savings, even a small amount, are more likely to feel confident than those who don’t (17 per cent). Setting savings goals also seems to positively impact confidence, with 67 per cent of people with clearly defined savings targets feeling confident about living well in retirement, in contrast to just 26 per cent of those without these goals.
Even just talking about your retirement finances can boost your confidence. Those who regularly discuss retirement plans with a partner, family member or friend were more confident (63 per cent) compared to those who don’t (28 per cent).
Current cost-of-living challenges are also having an impact on people’s retirement planning. Individuals who reported being unaffected by inflation were significantly more confident (70 per cent) than those who said they were feeling cost-of-living impacts (32 per cent).
How can I boost my retirement confidence?
AustralianSuper has a few tips and things you can do today to feel more confident in your retirement future.
Talk about your retirement plans: have open discussions with your loved ones about your retirement goals. Sharing your thoughts out loud can provide support and reassurance, as well as help you give structure to your retirement.
Start budgeting: create and stick to a household budget, prioritise saving money and paying down debts where you can.
Set clear goals: determine how much you will need to save for a comfortable retirement and create a savings plan to help you reach those goals.
Get financial advice: getting professional advice can help you make well-informed decisions and develop a plan to maximise your retirement savings and investments.
The survey found that those who had received financial advice were 50 per cent more confident than those who didn’t. Similarly, those who were more engaged with their super, shown by making additional contributions (58 per cent), reviewing their annual statement (56 per cent), or just regularly checking their balance (50 per cent) are more confident than those who did none of those things (36 per cent).
“Moving into retirement can seem daunting, and we know people are worried about not having enough money. But there is help available and, as this research shows, making simple changes in your daily financial routine can deliver positive outcomes.”
How confident are you that you’ll live comfortably in retirement? Do you practise any of these habits already? Let us know in the comments section below.
Also read: Confidence takes a dive as 50 per cent of Aussies say they’re rethinking retirement plans
Good grief no, at age 72, I have absolutely no confidence in the security of my future years. Having always been single, I thank heavens for all those years I worked 3 jobs, and did not go on overseas trips, because I now own my own home, I have very small super being drastically dwindled, and with the massive outrageous cost of living increases, I honestly don’t know how much longer I can survive. I’m not interested in the government pushing me to sell my home, rent privately (from a wealthy politician most likely), and live off the proceeds.