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Retirees are keeping their savings for themselves instead of saving it to be passed onto family members when they die.
OLDER Australians are no longer hoarding wealth to pass onto their family members — instead they are preserving their savings for themselves, a new report has found.
However only 45 per cent of retirees have confidence they will have enough savings to fund their life once they stop work, the National Seniors Australia’s “Over 50s: still not confident about their retirement income†report showed.
The findings compiled from more than 3000 Australians revealed most retirees are incredibly savvy and three in four want to maintain a minimum level of savings because they believe they have an unpredictable future.
Many retirees are trying to maintain a minimum level of savings because they fear they have an unpredictable future.Source:Supplied
While many retirees are keeping a stable level of funds for any unexpected expenses including medical costs, home or car repairs, only about 18 per cent want to leave some money to family members.
The report’s author Professor Philip Taylor said retirees are keeping their savings in check so they can see out their retirement.
“They don’t want to be dependent, it’s an issue of maintaining your wealth so you can see out your retirement with some dignity,’’ he said.
“It’s not about hoarding the money away and not wanting to pass it onto the next generation as much as being about survival, it’s about people being genuinely concerned about their futures.â€
The Australian Institute of Superannuation Trustees chief executive officer Tom Garcia said superannuation has its ultimate purpose.
Australian Institute of Superannuation Trustees chief executive officer Tom Garcia said retirees should use their superannuation to fund their retirement and not for other purposes.Source:News Corp Australia
“Retirees need to remember that the key purpose of superannuation is about providing income in retirement so there shouldn’t be pressure to do any more than that,’’ he said.
The Association of Superannuation Funds of Australia’s Retirement Standard shows to have a ‘comfortable’ retirement, single people need $545,000 in retirement savings and couples will need $640,000.
Many Aussies will spend more than a quarter of their life retirement — the average life expectancy of males is 86 and females is 89.
Mr Garcia also said retirees should be aware that a majority of people retiring may qualify for the aged pension which will boost their retirement income.
“While every dollar put into super counts, the age pension provides a significant boost to overall income for many people,’’ he said.
The report also revealed many retirees are not well prepared to manage their own finances in retirement.
sophie.elsworth@news.com.au