It’s no wonder pre-retirees have concerns about the next phase of their lives. Putting together the fragile financial puzzle involving superannuation, the age pension and investments to keep abreast of rising inflation isn’t easy.
No one knows exactly how long they will live. They potentially face a long retirement, ill health, disability and residential aged care.
Will they have enough money to see them out?
“It’s a great, big interconnected ball of decisions, behaviours and a system of government assets and income tests with exemptions and exclusions” says financial planner Peter Humble, at Rise Wealth.
Uncertainty is overwhelming for many pre-retirees, who are much less satisfied with their lives compared with those who have already retired.
Pre-retirees have the lowest satisfaction about wealth, confidence, emotional experience, purpose, connection and control compared with retirees who work part-time, those who are new to retirement, and late retirees, according to Fidelity’s 2021 survey of the four groups.
Fifty per cent of the pre-retirees say financial stress hurts their physical and mental health, while 40% say it damages their family and social relationships. A third say it harms their work life.
“There is fear of not having saved enough for retirement and worrying about how it is going to work out,” says Richard Dinham, head of client solutions and retirement at Fidelity.
This story is from the July 2022 edition of Money Magazine Australia.
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This story is from the July 2022 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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