Many expect to need a paid job in retirement
A report has found that most Australians expect to continue to work in some form of a paid job after they retire. Many believe they’ll need to work to make ends meet.
Commissioned by News Corp Australia in partnership with Industry Super Funds, the report found that 61% of workers predict they will need to work in their retirement years.
But the main reason wasn’t for the money, with 53% saying they wanted to continue to work in some form ‘to keep busy.’ Money did come a close second with 48% saying it was so they would ‘have enough money.’
9% of Baby Boomers say they don’t think they’ll be able to afford to retire.
It’s true that Baby Boomers have to be careful with finances and attempt to put extra aside as we prepare for retirement, but we also have to be realistic about our expectations.
How do you see yourself?
Martin Fahy, the chief executive officer for the Association of Superannuation Funds of Australia, said one of the problems we have is ‘how we perceive ourselves in retirement.’
‘If you define retirement as recreation it will be about consumption and it will be financially unsustainable, bad for your health and vitality, and bad for your relationship.’
‘You cannot play golf six days a week and bridge and bowls from the age of 60 to 95.’
You might want to work at a part-time job because you can. If you do, go for it. You may have other plans. Actually, having a plan for what you want to do is incredibly important for a successful retirement.
It’s about more than money
In your planning, remember that it isn’t all about money.
However, if you have concerns about your finances, you should see someone who can help you—a financial advisor, for instance. A trained financial advisor can clarify what you need to do to maximize funding for retirement. They can also give you some idea of what you will need, what you will have, and whether you will be eligible for a pension.
Whatever your situation, it’s better to know the realities of your finances than attempt to work it out by guesswork. Then you can plan realistically to fit your situation.