Saving for retirement: What does it look like in 2022?

older retired lady in blue jacket dancing in front of blue background

With more and more Aussies living longer and healthier lives, the way we think of retirement is changing.

A new report from Colonial First State shows that Australians aged 45-65 have a very different view of retirement than they did just a decade ago. 

While retirement was once seen as a reward to end your working life - think golfing, gardening and grandchildren - attitudes have definitely shifted. 25% of people surveyed were interested in potentially changing their careers and 15% were either studying or planning to begin shortly.

Many of the people surveyed who were interested in making a career change said they would be willing to stay longer in the workforce given a shift to a new career. With longer lifespans meaning longer retirements, this extra time (and money into your super fund) could be deeply beneficial.

The current recommendation for the amount of money set aside prior to retirement ranges between $29,139 and $45,962 p.a. for a single person and $41,929 and $64,771 p.a. for a couple. The Colonial First State report illustrates the tendency of Australians to underestimate their lifespan (with 38% of people surveyed not expecting to live beyond 80), having to stretch their money out further than anticipated.

Thinking of retirement less as a final stage and more as an opportunity, retirees-to-be are excited for the potential of time to spend travelling, giving back to the community, and being with their families.

How do I start setting myself up for retirement now?

Depending on where you are in your life, retirement might seem far off. Regardless of your age, the way you set yourself up now can have a huge impact on the way you are able to spend your life after 65.

Investing your superannuation wisely will help you yield greater results come retirement. This can help to accommodate concerns around retirement income and mortgage payments. Checking in regularly to your super will help you monitor its health and adjust where needed.

Keeping debt minimised, paying back loans and staying on top of credit cards prevents these carrying over into retirement. 

Giving yourself a clean slate will allow you to have the fullest retirement possible - whether that means seeing the world, exploring an untapped passion, or spending time with the people you love.

Setting yourself up for success? Explore the Mozo People’s Choice Award winners for Best Super Fund.