Boomers more focused on retirement

Tim Gunning

The market volatility generated by the sub-prime meltdown has caused baby boomers to focus harder on the adequacy of their retirement savings, according to research released this week by the Commonwealth Bank.

The bank’s Lifestyle Aspirations Survey has revealed that in the face of the market volatility, 77 per cent of respondents made changes to better save for their retirement and, of those, 56 per cent sought advice from a financial planner.

The Commonwealth Bank research also suggests that baby boomers are becoming more realistic about what they can afford in retirement, with the survey finding that fewer are certain they will be able to afford the lifestyle they want once they finish work.

Commenting on the results, the general manager of Commonwealth Financial Planning, Tim Gunning, said baby boomers were continuing to take an optimistic outlook towards retirement despite the economic conditions.

He said that with expectations and aspirations high, many had reviewed their financial position and taken a more active role in their retirement planning.

“Interestingly, as many as 38 per cent of respondents saw retirement as an opportunity to pursue a new career or even learn new skills,” Gunning said. “This trend suggests that many people see retirement as a series of transitions where some form of work or community service can continue into the retirement years.”

The survey also found that the 2007 changes to superannuation legislation led many Australians to reconsider their retirement strategies, with one in three revising or starting a new investment plan as a direct result of the changes.