Home / Retirement / Engaging with super helps lay foundations for successful retirement

That old saying, you reap what you sow, is very apt when it comes to retirement, with an AustralianSuper study revealing that those taking a keen interest in their superannuation in the accumulation phase being more positive about their golden years.

People who are actively involved in their superannuation in the accumulation phase are more confident of living well in retirement, according to new research by the $335 billion industry fund, AustralianSuper.

The Retirement Confidence Study, which surveyed more than 5,000 Australians, found that people putting extra money into their superannuation, regularly checking their balance or reviewing their annual statement were more positive about their retirement compared with those disengaged.

The study revealed that 58 per cent of people putting additional money into superannuation felt confident about retirement, as did 56 per cent reviewing their annual statement and 50 per cent regularly checking their balance. But only 36 per cent of people who did none of these things felt confident about living well in retirement.

The study’s findings highlighted that less than half of Australians (46 per cent) were confident about retirement, but this perception could be altered via simple daily habits such as planning and goal setting, saving money and paying off bills.

The study said: “Those who pay off monthly bills, such as rent, credit cards and loans, are more likely to feel confident about their retirement (50 per cent) than those who don’t (18 per cent). Similarly, those who consistently save money for the future, even a small amount, are more likely to feel confident about retirement (59 per cent) than those who don’t (17 per cent).

“People with clearly defined savings goals feel confident about retirement (67 per cent) compared with those without these goals (26 per cent), while discussing retirement plans with a partner, family member or friend also boosts confidence (63 per cent) compared with not sharing (28 per cent).

The study also highlighted the impact of cost-of-living challenges on retirement planning. Individuals who reported being unaffected by these challenges were significantly more confident (70 per cent) than those who reported being affected (32 per cent).

AustralianSuper’s chief officer of retirement Shawn Blackmore (pictured) emphasised the importance of the study in understanding and addressing attitudes, behaviours and financial drivers that helped Australians live well in retirement.

“Interestingly, the most influential driver of retirement confidence is goal setting and planning, with effective money management being the second most influential factor. We understand the unknown can be daunting but, with the right plan in place, Australians can feel more reassured they’ll live well in retirement.

“Everyone’s retirement journey is different, and we want Australians to feel confident as they approach this important stage of their lives,” he said.

Overall, those who received financial advice – whether professional or from attending seminars, webinars or doing desktop research – were 50 per cent more confident than those who didn’t.

Blackmore said: “This research helps us better understand the support Australians need when it comes to retirement so we can boost their confidence by providing the right information, guidance and advice at the right time. Moving into retirement can seem daunting and we know people are worried about not having enough money. But there is help available and, as this research shows, making simple changes in a daily financial routine can deliver positive outcomes.

“We want Australians to confidently move from a lifetime of saving for retirement to confidently spending their hard-earned nest egg when and how they wish to.”

The study also found differences in retirement confidence across various demographics. Men tended to be more confident, with 53 per cent believing they will live well in retirement, compared with 39 per cent of women.

Retirement confidence tips:

Start the conversation: Have open discussions with your loved ones about your retirement plans and goals. Sharing your thoughts can provide support and reassurance, helping everyone feel more prepared.

Set clear goals: Determine how much you need to save for a comfortable retirement and create a savings plan to help you reach those goals.

Ease into retirement: Consider a phased approach to retirement, gradually reducing your work hours or transitioning to part-time work. This can make the transition smoother and less stressful.

Budget with care: Create and stick to a budget, save and pay down debts where you can. This will help build financial security for your retirement.

Get professional advice: Seeking professional advice can help you make well-informed decisions.