Younger Australians are more worried about retirement savings than those close to or in retirement, and Australians overall are more anxious about retirement finance than their global peers, according to new research by global asset management firm Franklin Templeton.
The survey found that over 70% of Australians in both Generation Y (age 21-38) and Generation X (age 39-54) experience stress or anxiety from thinking about their retirement savings and investments, a rate even higher than among Baby Boomers (age 55-73) which was 67%.
Far from indifferent when it comes to retirement planning, nearly half (46%) of Gen Y respondents reported checking in on their retirement savings progress monthly or more often.
“We often hear that retired Australians or those nearing retirement are highly concerned about the adequacy of their finances to support their retirement”, said Mr Manuel Damianakis, head of retail for Franklin Templeton in Australia. “However, concern among younger Australians is even more widespread.”
He added, “Younger Australians are often pessimistic about their capacity for homeownership and it appears they are equally perturbed about financing retirement. It is unfortunate younger Australians are feeling this unease when they have one of the greatest advantages for successful retirement planning on their side – time.”
Furthermore, nearly three in four Gen Y respondents (73%) and 68% of Gen Xers fear they are behind on saving for retirement.
This lack of savings appears to be resulting in younger Australians having a fearful vision when it comes to retirement, with 29% of Millennials and 20% of Gen Xers believing they will never retire, and around one-third of both groups expecting to have to continue to work part-time to fund their retirement.
The study surveyed 2,000 Australians aged 18 or older, with the aim of understanding individual attitudes and behaviours around planning for and living in retirement.
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