Colonial First State’s (CFS) annual Rethinking Retirement Report revealed that of those yet to retire, more than half (54 per cent) cannot see themselves achieving a comfortable retirement, with those over 50 feeling this even more acutely (57 per cent).
Meanwhile, only 64 per cent of Australian retirees said they were currently able to enjoy a comfortable retirement, marking a 7 percentage point drop from last year (71 per cent).
However, CFS suggested that ongoing cost-of-living pressures are pushing more Australians to be more proactive when it comes to their retirement planning.
For example, the report found that 41 per cent of Australians have actively reviewed the performance of their super, up from 36 per cent last year, while 28 per cent have sought out advice from their super fund, up from 23 per cent.
The report found that pre-retirees who receive financial advice feel more confident about their prospects in retirement, with 85 per cent stating they are on track to reach their retirement goals compared with just 49 per cent of those not receiving advice.
Furthermore, more than two-thirds (70 per cent) of advised Australians indicated that they felt financially prepared for retirement, while just 30 per cent of unadvised participants indicated the same.
Notably, younger Australians appear to be taking a particular interest in their retirement planning, with those under 50 showing greater interest in getting help with goal setting (73 per cent) or sharing their financial goals (75 per cent) with their super fund.
The report found that this boost in confidence also extends beyond retirement planning, with 77 per cent of advised respondents indicating they feel confident to manage their own finances, compared with 58 per cent of unadvised participants.
Advised Australians also feel markedly more confident in their overall financial situation (72 per cent) and that they will achieve their financial goals (70 per cent).
CFS Superannuation chief executive Kelly Power remarked that while the current economic environment has proved trying for many, it has also prompted more Australians to reach out for help, which will ultimately leave them better off down the line.
“The cost of living has shaken confidence in retirement expectations. However, it has also led to more people engaging with their super and seeking assistance with retirement planning,” Power said.
“The findings once again highlight the positive impact of financial advice, with those who receive advice twice as likely to feel financially prepared and on track to reach their retirement goals.”
