About the study
Money commissioned a survey of an independent panel of 1,018 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.
What kind of annual income do Australians want in their retirement?
Money sought to uncover the desired annual income that Australians would want in their retirement.
- 28% of respondents want between $50,000 and $60,000
- 22% want $60,000 to $80,000
- 20% want more than $100,000
- 15% would be comfortable with less than $40,000
- 15% want between $60,000 and $80,000
What annual income each age group would like
Money analysed the results across age groups. Respondents that are further from reaching retirement age indicated they want a higher annual income than older respondents:
More than $60,000 annually
- 64% of 35-44-year-olds
- 57% of 45-54-year-olds
- 43% of 55-60-year-olds
More than $100,000 annually
- 26% of 35-44-year-olds
- 20% of 45-54-year-olds
- 10% of 55-60-year-olds
A breakdown of desired annual income at retirement by age
What annual income each respondents in each State would like
When analysing responses across the States, Money found that Queenslanders and NSW respondents want a larger income in their retirement:
- 40% of Qlders and NSW residents indicated they want more than $80,000
- Compared with only 27% of South Australians and 23% of Western Australians
- 28% of Qlders and 26% of NSW residents also indicated they want more than $100,000
- Compared with only 15% of South Australians, 14% of Western Australilans and 13% of Victorians
What kind of annual income do you want in your retirement?
Response | Less than $40,000 |
|---|---|
NSW (%) | 11 |
VIC (%) | 15 |
QLD (%) | 16 |
SA (%) | 12 |
WA (%) | 23 |
ACT (%) | 13 |
Response | $50,000 - $60,000 |
NSW (%) | 25 |
VIC (%) | 23 |
QLD (%) | 28 |
SA (%) | 42 |
WA (%) | 43 |
ACT (%) | 13 |
Response | $60,000 - $80,000 |
NSW (%) | 24 |
VIC (%) | 28 |
QLD (%) | 16 |
SA (%) | 19 |
WA (%) | 11 |
ACT (%) | 40 |
Response | $80,000 - $100,000 |
NSW (%) | 14 |
VIC (%) | 21 |
QLD (%) | 12 |
SA (%) | 12 |
WA (%) | 9 |
ACT (%) | 7 |
Response | More than $100,000 |
NSW (%) | 26 |
VIC (%) | 13 |
QLD (%) | 28 |
SA (%) | 15 |
WA (%) | 14 |
ACT (%) | 27 |
| 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%) indicated they won’t.
Assets and cash for retirement by age groups
Similar proportions of respondents across all age groups admit they will not have adequate assets and cash to meet their retirement income expectations. Here's how the ages stack up:
- 63% of 35-44 year olds
- 60% of 45-54 year olds
- 58% of 55-60 year olds
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.
- Nearly three quarters (73%) of West Australians indicated they won’t be prepared
Compared with:
- 63% of South Australians
- 58% of NSW residents
- 57% of Queenslanders
- 56% of Victorians
Do Australians expect to have any debts when they retire?
A worrying 31% of respondents expect to carry debts into their retirement. Specifically:
-
One fifth (21%) expect to bring a mortgage or renovation loan into their retirement
-
While an equal 4% expect to continue to be paying off a car loan or major credit card debt
-
And 2% expect to be paying off a personal loan
Do you expect to have any debts when you retire?
Retirement debts across the states
36% of NSW residents
34% of Victorians
29% of West Australians
26% of Queenslanders
25% of South Australians
Almost a quarter (24%) of NSW residents and 23% of Victorians expect to have a mortgage or renovation loan when they retire.
This compares with:
- 18% of Queenslanders
- 17% of South Australians
- 14% of West Australians
A smaller proportion of respondents across the states expect to bring other debts into their retirement. For instance:
- 9% of West Australians expect to have major credit card debt when they retire
Compared with:
- 5% of NSW residents
- 4% of Victorians
- 3% of South Australians
- 2% of Queenslanders
Do you expect to have any debt when you retire?
Response | Yes, a mortgage or renovation loan |
|---|---|
NSW (%) | 24 |
VIC (%) | 23 |
QLD (%) | 18 |
SA (%) | 17 |
WA (%) | 14 |
ACT (%) | 27 |
Response | Yes, a car loan |
NSW (%) | 5 |
VIC (%) | 6 |
QLD (%) | 4 |
SA (%) | 2 |
WA (%) | 2 |
ACT (%) | 8 |
Response | Yes, a personal loan |
NSW (%) | 3 |
VIC (%) | 2 |
QLD (%) | 2 |
SA (%) | 3 |
WA (%) | 4 |
ACT (%) | 0 |
Response | Yes, major credit card debt |
NSW (%) | 5 |
VIC (%) | 4 |
QLD (%) | 2 |
SA (%) | 3 |
WA (%) | 9 |
ACT (%) | 0 |
Response | No |
NSW (%) | 63 |
VIC (%) | 65 |
QLD (%) | 74 |
SA (%) | 75 |
WA (%) | 71 |
ACT (%) | 65 |
| 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
32% of 35-54 year olds
27% of 55-60 year olds
A higher proportion of younger respondents also expect to carry a mortgage or renovation loan into their retirement:
21% of 35-54 year olds
18% 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?
Nearly three quarters (73%) of respondents will expect a pension at some point in their retirement, while 27% do not believe they will receive a pension.
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% of NSW residents
- 75% of South Australians
- 73% of West Australians and ACT residents
- 70% of Queenslanders
- 67% of Victorians
Receiving a pension by age group
There was also little difference in expectations among age groups:
- 78% of over-55s admitted they would need a pension to support them in their retirement
- Compared with 71% 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.
