Roy Morgan research conducted in the twelve months to January 2019 shows more than 430 thousand Australians will retire in the next 12 months with an average gross wealth of $299 thousand – much less than the $545K recommended by the Association of Superannuation Funds of Australia (ASFA).
With pressures on the Age Pension and additional uncertainty coming from a weakening property market, potential changes to superannuation legislation and general share market volatility, the need for Australians to plan for retirement has never been greater.
Director of Aged Care Steps, Louise Biti, says it is essential for everyone to consider the three phases of retirement.
‘When talking about retirement, we ask people to think about the care-free years, the quiet years and the frailty years – when health issues associated with living longer mean we are likely to have some level of dependency on others.’
Ms Biti describes the average income required at each phase and cautions against the common misconception that the cost of living declines after retirement.
‘It’s really more of a U curve’ she explains. ‘Higher care needs in later life mean increased costs.’
While there is considerable government subsidised aged care available in Australia, living well in all phases of retirement is about maintaining choice and control – especially in later life.
‘Australians are guaranteed a minimum quality of care through government funded aged care,’ she says. ‘But quality of life in retirement requires careful planning and professional advice.’
Make an appointment with your adviser today to discuss your retirement planning needs.
Disclaimer: The information in this article is general and does not take into account your particular circumstances. We recommend specific tax or legal advice be sought before any action is taken and refer to the relevant Product Disclosure Statement before investing in any product. Rates current to 19 September 2017.