More than two thirds (69%) of Australians feel financially optimistic about retirement. Though only half are confident (53%) they will have the standard of living they would like when retired.
The majority have a practical mindset, with only a third (35%) of overall respondents expressing the desire to live well today at the expense of retirement. That figure increases to 46% when the question is posed to people aged below 36 years.
Almost two thirds (61%) claim that having a Super makes them feel more secure about retirement than other investments of the same value.
Those with a financial adviser are much more optimistic about their future standard of living. Whereas people without alternative provisions for their retirement are unsurprisingly likely to be more pessimistic towards their future lifestyle.
Cash/savings is the most popular source of additional retirement funding with both stocks/shares and property following. Optimistic future retirees have a range of alternatives to rely on beyond their Super, while 41% of pessimists have no other provisions.
Risk appetite
While 69% of people may feel optimistic about retirement finances, that optimism rises to 86% among those with a higher risk appetite. Confidence among the risk takers may be due to the advice being received. Only a third (34%) of risk takers make investment decisions before seeking professional counsel. Whereas in contrast, that figure almost doubles to 62% among non-risk takers relying on their own investment judgement. As a potential consequence; 57% with a low risk tolerance are as optimistic as their counterparts.
73% of risk takers believe that they are knowledgeable about their Super investments, compared to only 19% of non-risk takers.
Risk takers tend to be at an earlier stage of their Super investment journey too, and a vast majority are male. Three out of four (76%) actively manage their Super(s) compared to just 40% of non-risk takers.
They (the risk takers), are three times more likely to be investing into an SMSF, but this could be due to their higher income and existing wealth. More than half of the risk takers earn over $75k a year compared to just one in four of their non-risk counterparts.
As a consequence, risk-takers have more money in their Super pot too. 44% have a Super currently valued between A$100k and A$500k, and half of them contribute more than A$10k a year, compared to 28% and 10% of non-risk takers respectively.
Finally, risk takers are far more likely to have alternative provisions for their retirement, most notably in cash, shares and property. A third of non-risk takers have no other provisions outside of their Super.
