Based on a recent study, it was revealed that Australians think that an average amount of $1,142,000 -which can either be their investments or savings – is needed for them to be able to retire in a comfortable manner. Majority of them estimates that when the time comes for them to retire, they will only have a little over 50 per cent of the expected amount. This only goes to show that a financial advisor in Australia is necessary in order to help these people achieve their savings goal before retirement kicks in.
The survey was conducted by MLC Australian Wealth Sentiment for the first quarter of 2017. It included over 2,000 participants from different parts of Australia. It showed that more than 50 per cent of Australians think they will not be able to gather such amount before their retirement. Majority believed that they will only have about $638,000 in bank savings.
Women, on one hand, are not as optimistic as men when it comes to the topic of retirement savings. This shows by the 60 percent that believe in not having enough to retire while there are 52 per cent in men. More than 35 per cent of women think that their savings will be quite far from the average amount while only 27 per cent in men.
Only a small portion of Australians, about 5 per cent, expects that they will have more than the average amount before their retirement age.
MLC’s report shows that the present income levels are vital in determining the expectations when retirement comes. People who have the lowest incomes think that they will require as much as $679,000 in order for them to retire comfortable while high earners believe in saving as much as $1,469,000.
The reason for many Australians not having enough for them retirement lies on the fact that they want to pay their debts first before anything else. This is the top priority as revealed in the first quarter of this year. In order to pay their debts, many are not saving enough and investment is not seen as a priority. In order to rectify this situation, it is recommended that they hire a financial advisor in Australia that will help them in managing their finances and save more for their retirement.