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The changing face of retirement

Retirement means different things to different people. The changing landscape of retirement means that people are living longer in retirement and therefore need to ensure their financial security for upwards of 20 years.

30 years ago, people retired from the workforce due to old age or health concerns. Recently, attitudes towards retirement have shifted to focus on establishing a work-lifestyle balance with some people retiring completely, or even working part-time.

On a positive note, a recent survey conducted by Aegon has seen an increase in the amount of people who feel financially prepared for retirement, as many economies recover from the global financial crisis.

This stresses the importance of saving for retirement. If Australians want to retire at age 65 and enjoy at least 20 years of the good life, we need to save more to provide for that lifestyle.

While our compulsory superannuation system, coupled with the government pension has boosted the retirement incomes of many Australians, the increasing number of retirees is putting a strain on the system.

The Australian Bureau of Statistics recently surveyed retirees aged 45 and over who had retired from the workforce and the difference between their expected source of income and actual source of income differs greatly when it comes to the Government pension and superannuation.

retirement chart

So, what does this mean for the baby boomers? Going forward, Australians are going to have to rely more heavily on their personal sources of income to support them throughout their retirement and less on the Government pension.

A stronger emphasis needs to be placed on the best ways to save for retirement which takes into account your current lifestyle and the lifestyle you hope to live in the future. Talking with your Core financial advisor and setting up some clear goals can ensure that when it comes time to retire, you are living the life you want and enjoying your golden years.