Australians under 30 have listed setting aside more cash, investing in property and increasing super contributions as the three most important factors to consider when thinking about their retirement funding, according to the latest MLC Quarterly Wealth Sentiment Survey.
In a sign that shows a growing awareness about the importance of planning for retirement, 52% of young Australians said putting aside more cash was by far the most important factor when thinking about retirement savings. Investing in more property (32%) and increasing super contributions (28%) drew the next biggest responses.
Similarly, when asked what they would do differently if they had the chance again to fund their retirement, 36% of Australians over the age of 50 said they regret not putting away more cash, while 35% would increase their super contributions if they had the chance to plan again for their retirement.
Investing in bonds, taking out more insurance and taking more risk are three of the least important considerations according to both age groups.
General Manager Client Management Lara Bourguignon said, “Planning for retirement is not something that should be an afterthought. We want Australians to start saving for their retirement now so they can achieve their goals in the future.
“It is encouraging to see Australians of all ages are actively thinking about ways they can achieve their retirement goals. Ensuring plans are in place early on in can make all the difference down the track.
“This is why we launched our Save Retirement campaign to encourage Australians to take control and action to secure their retirement. It is never too late to start.”
The survey of more than 2,000 Australians also found that Australians on average expect to spend more on medical expenses when retired. Many Australians expect to cut back spending on children and discretionary goods like household items, personal goods, home improvements and eating out.
The report also highlights that Australians are increasingly giving consideration to the impact of future financial setbacks such as health issues or job loss when planning for their retirement.
“While it is not always easy to think about these sorts of issues, it is vital for Australians to be prepared if they find themselves in these situations.”