Australians still need better retirement planning
Most Australians are still not paying adequate attention to their superannuation and retirement until they are nearly in their 50s.
New research conducted by Roy Morgan Research has confirmed what many financial planners already know.
And, according to Roy Morgan Research industry communications director, Norman Morris, financial planning has an important role in overcoming the problem.
The research found that, up to 21 years, most people (more than 70 per cent) feel that retirement is too far away to plan for, but that this improves a great deal by around 22 to 24 years, by which time 56.7 per cent think that retirement is too far away.
However, the research analysis suggested it was a potential problem that just under a third (31.4 per cent) of 35 to 39 year olds still believed they were too far from retirement to plan and that in the critical pre-retirement years of 50 to 54, 16.6 per cent considered that retirement was too far away to bother about planning.
Morris suggested the superannuation industry and the government had roles to play to make people aware of the benefits of financial planning, such as creating a more stable set of conditions and rules for superannuation that will improve confidence in being able to plan for the long-term.
"Frequent changes or speculation of changes to the rules governing superannuation do not instill confidence in what for most people is a 40-plus year time frame. There is also a need to improve people's understanding of superannuation: from its terminology, adequacy and advantages, to its fees and financial advice," he said.
"Currently there is uncertainty regarding what the government is likely to do regarding rule changes for the taxation of superannuation. Factor in the volatile share market and the complex terminology used in superannuation, and this makes long-term financial planning for individuals a rather precarious occupation," Morris said.
By Mike Taylor
21 January 2016
moneymanagement.com.au
Latest Newsletters
Hot Issues
- Aged care report goes to the heart of Australia’s tax debate
- Removed super no longer protected from creditors: court
- ATO investigating 16.5k SMSFs over valuation compliance
- The 2025 Financial Year Tax & Super Changes You Need to Know!
- Investment and economic outlook, March 2024
- The compounding benefits from reinvesting dividends
- Three things to consider when switching your super
- Oldest Buildings in the World.
- Illegal access nets $637 million
- Trustee decisions are at their own discretion: expert
- Regular reviews and safekeeping of documents vital: expert
- Latest stats back up research into SMSF longevity and returns: educator
- Investment and economic outlook, February 2024
- Planning financially for a career break
- Could your SMSF do with more diversification?
- Countries producing the most solar power by gigawatt hours
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- Quarterly reporting regime means communication now paramount: expert
- Plan now to take advantage of 5-year carry forward rule: expert
- Why investors are firmly focused on interest rates
- Super literacy low for cash-strapped
- Four timeless principles for investing success
- Investment and economic outlook, January 2024
- Wheat Production by Country
- Time to start planning for stage 3 tax cuts: technical manager
- Millions of Australians lose by leaving savings in default MySuper funds
- Vanguard economic and market outlook for 2024: A return to sound money
- An investment year of ups and downs
- How to tame the market's skewness
- The Countries that Export the Most Wine in the World
- Tips for preparing for the best tax outcomes
Article archive
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
January - March 2016 archive
- Possible tax benefits through early inheritance
- Market Update - 29th February 2016
- Mortgages, personal debt and retirement
- Cost of retirement continues to climb
- Personal finance goes 'viral'
- ATO warns on poor asset records causing SMSF breaches
- When is an unallocated contribution account a reserve?
- Market Update – 31st January 2016
- Australians still need better retirement planning
- What to expect from investment markets in 2016 and beyond
- ‘Irrational fear’ impacting SMSF longevity risk: CSIRO
- Tax scam reaps hundreds of thousands
- Morrison signals direction of super tax changes
- Market Update – 31st December 2015