While Australia’s A$4.5 trillion (US$3.2 trillion or $4.0 trillion) pension industry ranks among the top global retirement systems, surveys repeatedly show Australians are deeply anxious about their finances once they stop working. The industry has been under pressure from the regulator to provide more options for people when they begin drawing down on their pension savings.
Some 46% of people reported having low financial literacy and low confidence managing their retirement finances, the ASIC said, when launching a suite of new online tools to help such people.
For a third straight year, the rising cost of living continues to be the biggest concern for Australians over the age of 60, according to separate research from annuities provider and investment manager Challenger released on Monday. Still, it found Australians over 60 remain largely positive about retirement.
A growing number of Australians are working well into their 70s, as flexible work options for white collar employees enables people were able to stay in the workforce longer.
See also: Australians say they now need A$1 mil to retire, study shows
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