Baby boomers feeling the financial squeeze
Baby boomers are more pessimistic about Australia's economic outlook than any other generation, according to the RaboDirect National Savings and Debt Barometer.
Based on the results of 2,355 Australians aged between 18 and 65, 30 per cent of boomers expect to enter retirement with a mortgage, with 40 per cent of those planning to sell their property to pay off the loan and buy a cheaper property.
Just under 30 per cent plan to pay off their mortgage with their superannuation - a plan that RaboDirect cites as a risky avenue to take, particularly as pre-retirees have seen the value of their super portfolios dwindling.
According to RaboDirect head of marketing Renee Amor, the results underline the need for Australians to build a larger pot of savings for what is more likely to be a longer lifespan.
With an average of $200,000 in their super, boomers expect to retire with $400,000 in superannuation - half the amount they estimate they will need, RaboDirect found.
In relation to the economy, 39 per cent expect to be worse off in 12 months, 47 per cent believe they will have less money in the hip pocket each week and 62 per cent see the economy worsening over the next year.
In the face of retirement savings gloom, the majority of boomers said they felt more in control of debt and were less stressed about money management.
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