The biggest financial concern of Baby Boomers isn’t what you think

This article in the News’ Financial selection suggests people are maybe living in ‘Pixie Land’ when it comes to planning their superannuation. The article reports new research by Apia Insurance has found that three-quarters of people aged over 55 say they have been financially preparing for retirement. However, Planning for Prosperity senior financial adviser Bob Budreika said statistics showed that only 17 per cent of Australians were retirement-ready and “the rest are living in pixie land”.

“Until something serious happens like they run out of money or their investments are lost in a market downturn, there’s utter complacency,” he said.

Mr Budreika said many people believed they could get by on the age pension, but for an average couple, the pension could be paying just half or one-third of their pre-retirement income.
“Be realistic about what your living expenses will be — don’t just assume,” he said. “Make sure in your calculations that you have a buffer for unexpected things.”

Mr Budreika said there was a good chance that at least one member of a retiree couple would live beyond 90, so pre-retirees should be thinking about diversification, risk and longevity.

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