Money Research with Money Matchmaker®
Do Australians have enough savings and assets for their retirement?
A Money.com.au Study October 2022
About the study
Money.com.au commissioned a survey of an independent panel of 1018 Australians to gauge their current finances, including their biggest concerns, how they are servicing their loans and assets they plan to purchase, such as a car or property. More than half (573) were aged 35-60; these respondents were asked whether they have enough assets to comfortably retire, if they expect to have any debts when they retire and if they will receive a pension during their retirement.
The pool of survey respondents matches the age and geographical spread of the Australian population.
Questions
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What kind of annual income do Australians want in their retirement?
Money.com.au sought to uncover the desired annual income that Australians would want in their retirement.
- More than half (57 per cent) of respondents want more than $60,000
- 35 per cent want more than $80,000
- While a fifth (20 per cent) want more than $100,000
What kind of annual income will you want in your retirement?
What annual income each age group would like
Money.com.au analysed the results across age groups. Respondents that are further from reaching retirement age indicated they want a higher annual income than older respondents:
- Two-thirds (64 per cent) of 35-44-year-olds and 57 per cent of 45-54-year-olds want more than $60,000 in their retirement
Compared with:
- Just 43 per cent of 55-60-year-olds.
- More than a quarter (26 per cent) of 35-44-year-olds want more than $100,000 annually
Compared with:
- 20 per cent of 45-54-year-olds and 10 per cent of 55-60-year-olds
What kind of annual income will you want in your retirement? By age.
What annual income each respondents in each State would like
When analysing responses across the States, Money.com.au found that Queenslanders and NSW respondents want a larger income in their retirement:
- 40 per cent of Queenslanders and NSW residents indicated they want more than $80,000 in annual income
Compared with:
- 27 per cent of South Australians and 23 per cent of West Australians
- 28 per cent of Queenslanders and 26 per cent of NSW residents also indicated they want more than $100,000
Compared with just:
- 15 per cent of South Australians
- 14 per cent of West Australians
- and 13 per cent of Victorians
What kind of annual income do you want in your retirement?
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) | ACT (%) |
|---|---|---|---|---|---|---|
Less than $40,000 | 11 | 15 | 16 | 12 | 23 | 13 |
$50,000 - $60,000 | 25 | 23 | 28 | 42 | 43 | 13 |
$60,000 - $80,000 | 24 | 28 | 16 | 19 | 11 | 40 |
$80,000 - $100,000 | 14 | 21 | 12 | 12 | 9 | 7 |
More than $100,000 | 26 | 13 | 28 | 15 | 14 | 27 |
Will Australians have enough super and cash flow to get the income they want in their retirement?
Respondents were asked whether they think they will have adequate super and cash flow from investments and other income streams to receive the income they want in their retirement. Nearly two-thirds (60 per cent) indicated they won’t.
Will you have adequate super and cash flow from investments and other income streams to receive that income?
Assets and cash for retirement by age groups
Similar proportions of respondents across all age groups
- 63 per cent of 35-44 year olds
- 60 per cent of 45-54 year olds
- and 58 per cent of 55-60 year olds
Admit they will not have adequate assets and cash to meet their retirement income expectations.
Will you have adequate super and cash flow from investments and other income streams to receive that income?
| Response | Age 35-44 (%) | Age 45-54 (%) | Age 55-60 (%) |
|---|---|---|---|
Yes | 37 | 40 | 42 |
No | 63 | 60 | 58 |
Assets and cash for retirement by State
The survey also revealed the proportions of respondents across the States that won’t have the finances needed to sufficiently set them up for retirement.
- Three quarters (73 per cent) of West Australians indicated they won’t be prepared
Compared with:
- 63 per cent of South Australians
- 58 per cent of NSW residents
- 57 per cent of Queenslanders
- And 56 per cent of Victorians
Will you have adequate super and cash flow from investments and other income streams to receive that income?
Do Australians expect to have any debts when they retire?
A worrying 31 per cent of respondents expect to carry debts into their retirement. Specifically:
- One fifth (21 per cent) expect to bring a mortgage or renovation loan into their retirement
- While an equal 4 per cent expect to continue to be paying off a car loan or major credit card debt
- And 2 per cent expect to be paying off a personal loan
Do you expect to have any debts when you retire?
Retirement debts across the States
Across the States, more NSW and Victorian respondents expect to bring debt into their retirement.
- One third (36 per cent) of NSW residents think they will have debt
- Followed by 34 per cent of Victorians
- 29 per cent of West Australians
- 26 per cent of Queenslanders
- And 25 per cent of South Australians
- A quarter (24 per cent) of NSW residents and 23 per cent of Victorians expect to have a mortgage or renovation loan when they retire
Compared with:
- 18 per cent of Queenslanders
- 17 per cent of South Australians
- And 14 per cent of West Australians
A smaller proportion of respondents across the States expect to bring other debts into their retirement. For instance:
- 9 per cent of West Australians expect to have major credit card debt when they retire
Compared with:
- 5 per cent of NSW residents
- 4 per cent of Victorians
- 3 per cent of South Australians
- And 2 per cent of Queenslanders
Do you expect to have any debt when you retire?
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) | ACT (%) |
|---|---|---|---|---|---|---|
Yes, a mortgage or renovation loan | 24 | 23 | 18 | 17 | 14 | 27 |
Yes, a car loan | 5 | 6 | 4 | 2 | 2 | 8 |
Yes, a personal loan | 3 | 2 | 2 | 3 | 4 | 0 |
Yes, major credit card debt | 5 | 4 | 2 | 3 | 9 | 0 |
No | 63 | 65 | 74 | 75 | 71 | 65 |
Retirement debt across the age groups
A higher proportion of younger respondents expect to have debt when they retire:
- 32 per cent of 35-54 year olds
- Compared with 27 per cent of 55-60 year olds
A higher proportion of younger respondents also expect to carry a mortgage or renovation loan into their retirement:
- 21 per cent of 35-54 year olds
- Compared with 18 per cent of 55-60 year olds
Do you expect to have any debt when you retire?
What proportion of Australians will need to receive a pension during their retirement?
Three quarters (73 per cent) of respondents will expect a pension at some point in their retirement.
Do you think you will need to receive a pension at any point in your retirement?
Receiving a pension across the States
There was little difference in the proportion of respondents across the States who expect a pension at some point to support their retirement:
- 77 per cent of NSW residents
- 75 per cent of South Australians
- An equal 73 per cent of West Australians and ACT residents
- 70 per cent of Queenslanders
- And 67 per cent of Victorians
Do you think you will need to receive a pension at any point in your retirement?
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) | ACT (%) |
|---|---|---|---|---|---|---|
Yes | 77 | 67 | 70 | 75 | 73 | 73 |
No | 23 | 33 | 30 | 25 | 27 | 27 |
Receiving a pension by age group
There was also little difference in expectations among age groups:
- 78 per cent of over-55s admitted they would need a pension to support them in their retirement
- Compared with 71 per cent of under-55s
Interestingly, the high proportion of younger respondents predicting the need for such a support measure suggest the ability for the population to save for their future has been significantly impacted by rising costs of living.
Do you think you will need to receive a pension at any point in your retirement?
