Gaps in financial knowledge impacts retirement spending

New research from AMP reveals some Aussies may be hitting a snag when it comes to dealing with the retirement system.

It appears that many are finding the transition to retirement complex, and are unsure of how they might get their finances in order. 

Concerningly, three-quarters of those surveyed have sought no financial advice for retirement, data from AMP shows.

A further 3 in 5 were ‘extremely concerned’ about the cost of living crisis. 

As a majority feel they should’ve started planning for retirement sooner, this could signal a need for future retirees to take a closer look at the management of their superannuation fund.

Super balances and account-based pensions 

With 4 in 10 older Australians not knowing their eligibility to receive the aged pension, there’s a call to improve access to financial advice and education programs.

“Seven out of ten older Australians also don’t know what an account-based pension is - even though it is the main income-generating option for Australians in retirement,” says AMP chief executive Alexis George.

An account-based pension refers to using your super as a stream of income in retirement, so it’s important to consider whether you’re getting the most out of your fund. It might also be a good idea to speak with a financial adviser to come up with a solid retirement plan. 

If you’re ready to get a jump on planning for your future, visit our superannuation guides hub to learn more about super, with topics ranging from what an industry super fund is to how you might withdraw super.