Survey also shows nearly one in five retired Australians are renting
An increasing number of Australians expect to pay off a mortgage in retirement or be forced to rent, results of a survey from investment firm Vanguard Australia have shown.
“After working hard and saving for the majority of our lives, Australians want to feel excited about a financially secure retirement,” said Daniel Shrimski (pictured above), managing director of Vanguard Australia. “However, our research has revealed nearly one in five Australians are renting in retirement, and 30% of working Australians expect to still be paying a mortgage after they retire.”
Shrimski highlighted the potential financial burden of unresolved debt or the need to draw down on savings to pay rent, especially if full-time work is no longer an option. He emphasised the importance of a robust superannuation balance as part of a comprehensive retirement plan.
The latest Vanguard How Australia Retires report also indicates that cost of living is a significant concern, with retirees expecting their income needs to increase by $10,000 per year, while working Australians anticipate a $25,000 annual increase in their retirement income needs.
“With rising costs in all aspects of our lives, many Australians are already thinking they’ll need to save more to afford a comfortable retirement,” Shrimski said.
The survey also found that Australians are increasingly worried about their money lasting through retirement. Four in five working Australians are somewhat or very concerned about running out of money, and half of retired Australians are unsure how much they can spend each year without outliving their savings.
Shrimski noted that planning and access to a financial adviser significantly improve Australians’ chances of a successful retirement. However, the survey indicated that free online sources, such as Google, are the most popular for retirement information and guidance, used by 42% of respondents.
“This is very concerning because we know quality financial advice can make a real difference to the retirement outcomes and experience for Australians,” Shrimski said. “The more Australians know, the better they can plan for the lifestyle they envision, and the more confident they will feel.”
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