Retirement – a love hate relationship

Adrian Emery

A new survey conducted for major insurer and financial services house AXA has revealed that 35 per cent of working Australians have never reviewed their retirement plans and as many as 49 per cent are not prepared for retirement.

The latest AXA Retirement Ready Index, released today, reveals that only 51 per cent of working Australians fall into the category of being “retirement ready” albeit that the research suggests that an increasing number of Australians are now realising that they need to take individual responsibility to secure a comfortable lifestyle in retirement.

According to AXA general manager of sales and marketing Adrian Emery, 87 per cent of working Australians acknowledge that it is up to them to save for retirement and many are beginning to plan for retirement at a younger age.

“Thankfully, we are now beginning to start planning for retirement at a younger age,” Emery said. “Among Australians, the average starting age to begin planning for retirement is 31, lower than the international average of 33 years.”

Commenting on the survey outcome, behavioural scientist Dr Stephen Juan said it revealed that Australians have a “love-hate” relationship with retirement.

“We hate the idea of retirement, and frequently put off thinking or planning for it, and, ironically, the closer one gets to retirement, the more likely one wants to put it off,” he said.

Juan said that Australians were forming both more positive and negative views towards retirement and the future, despite comparative positive attitudes generally.

“Perhaps reflecting higher costs of living and changes in government policies, the survey shows 29 per cent of Australians have negative associations towards retirement, an increase of 9 per cent in 2007. Yet 56 per cent of working Australians, compared with 51 per cent of retired Australians, think retirement will be better for their children,” he said.