Most expect delayed retirement

Julie Lander

Most pre-retirees predict that their mortgage and insufficient retirement savings will prevent them from retiring until they are at least 65, a new survey by industry superannuation fund CARE Super has found.

More than 60 per cent of respondents said they believed they would have to work until they are at least 65, with nearly half nominating repaying their mortgage as their primary financial priority, well ahead of saving for retirement and travel.

Almost 70 per cent said that, in hindsight, they would have started saving for retirement earlier — something CARE Super managing director Julie Lander said should serve as a cautionary tale.

“Our members are telling us that while mortgage stress is the number one financial priority of most Australians, they are now recognising the importance of voluntary superannuation contributions.

“It’s sad that nearly 60 per cent of CARE Super members anticipate the need to work way past their ideal retirement age because they feel financially insecure about the future.”

Lander said she was also concerned about many pre-retirees’ lack of understanding about where their superannuation is being invested.

“While almost 75 per cent of CARE Super members say they expect continued growth for their superannuation funds during this year, nearly one-third admitted they have little understanding about how their savings are invested.”