What is your retirement plan?
According to research commissioned by RaboDirect reports a decrease in expected retirement age amongst Generation Y Australians.
The 21- 34 year olds have dropped the average expected age from 63.1 to 60.4 in the past two years — a whole seven years before baby boomers. Generation X, including ages 25–48 have held theirs at 65 since 2014, while Baby Boomers have increased theirs to a range between 66.6 to 67 years.
Is this possible? Well, thanks to the mandatory Superannuation in Australia, for some it very well might become a reality to retire at 60. Yet, majority of Gen Y do not have any kind of retirement fund set up to support this dream. At the same time, living costs are on the rise and the value of voluntary contributions are at their lowest level in three years.
“They can think all they want but unless they actually do, nothing will ever happen. You can retire any time you want, if you can afford to retire,” Wealth for Life Financial Planning principal Rex Whitford says.
Australia soared to the third position on the 2015 Global Retirement Index, up from fifth position in 2014. As a nation, Australia has retained the top spot for Finances in Retirement sub-index, due to low levels of public debt, strong balance sheets and low inflation. Australia also takes a high spot due to readily available public health services, increasing life expectancy to 82.10 years (2012).
“People can spend a lifetime thinking about how things are going to work out for them but they do nothing. Then their number one attribute — time on their side — is gone,” Whitford warned.