Almost half of Australian retirees are struggling financially, study reveals

ALMOST 40 per cent of recent retirees are struggling financially, a new survey reveals.

A news survey commissioned by Industry Super Australia also shows that instead of kicking their feet up more than a quarter of the recently retired had to go back to work – many to keep the lights on.

It also reveals that retirement was thrust upon almost 45 per cent of workers, meaning the more they can put towards their savings during their working life the better prepared they’ll be when it ends.

A total of 734 industry fund members aged 47 years and older participated in either an online survey or a telephone interview overseen by Susan Bell Research between December 2019 and January 2020.

The survey revealed 38 per cent of recent retirees reported either living on a very tight budget with only enough for essentials, or that they were not making ends meet. A spike from a similar 2010 research report, when 30 per cent of reported they were either living on a very tight budget or not making ends meet.

In 2019, 20 per cent of retirees said their golden years were not as comfortable as they expected.

And the gender pay gap persists in super – with the average pre-retiree woman ($190,000) having just more than half the balance of men ($340,000), this gender inequality can partly be attributed to women spending on average 12 years less in full-time work than men.

And with almost half of pre-retirees anxious about how they will fund their retirement, the only way to deliver them some certainty is for the super rate to be lifted to 12 per cent by 2025 – as legislated. Delays to lifting the super rate has already cost the average Australian worker $100,000.

The promised super rate increase is the best way to give Australians control on when they finish work and the financial independence to live the retirement of their choice.