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Aussies most anxious about retirement: Franklin Templeton

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By Lachlan Maddock
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3 minute read

Australians are more anxious about their retirement savings than their global peers, according to a report from Franklin Templeton.

Around 70 per cent of those surveyed reported stress or anxiety related to retirement finance compared to the US (67 per cent), Canada (68 per cent), and China (68 per cent). 

“When you consider that there are so many different projections about the amount of money a person will need in retirement, and estimates can differ by millions of dollars, this general malaise about retirement finance is not hard to understand”, said Manuel Damianakis, head of retail for Franklin Templeton in Australia. 

Younger Australians were particularly stressed, with 70 per cent of Australians aged 21-38 and 39-54 experiencing stress or anxiety related to their retirement savings compared to 67 per cent of baby boomers (55-73). 

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“Younger Australians are often pessimistic about their capacity for home ownership and it appears they are equally perturbed about financing retirement,” said Mr Damianakis. 

“It is unfortunate younger Australians are feeling this unease when they have one of the greatest advantages for successful retirement planning on their side – time.”

Over 70 per cent of gen Y respondents were worried they were behind on saving for retirement, while a number of respondents across all age groups also reported having less than $50,000 in total savings for retirement, including 62 per cent of gen Y respondents and 36 per cent of Gen Xers.

“Australians need to better understand the benefits of saving early and often, even in small amounts,” said Mr Damianakis. 

“Seeking financial advice and having a sound written plan for retirement savings, both in super and outside of it, will help Australians to face their future with improved clarity and confidence.”

The report surveyed 2,000 Australians aged 18 or older, with the aim of understanding individual attitudes and behaviours around planning for and living in retirement.