Research: Advice increases retirement confidence
/New research shows that financial advice increases confidence in retirement. Vanguard’s inaugural report, How Australia Retires study, having a financial plan and access to advice drives confidence in retirees.
The study surveyed 1,800 working and retired Australians.
Key findings of the study include:
Two out of three working-age Australians have never engaged a financial adviser to map out a retirement strategy.
Of those who never sought professional advice, three-quarters said they were not confident in funding their retirement.
Forty-four per cent of those surveyed who did receive advice are extremely or very confident in funding their retirement.
Of those who use an adviser, over half engage with their superannuation fund and are twice as likely to have a detailed plan as those who do not use an adviser.
Over half who were highly confident in their retirement readiness say they know what to do to achieve the retirement outcome they desire and are optimistic about retirement.
Unadvised people tend not to make regular additional superannuation contributions and are less optimistic, more likely to feel disinterested, anxious or worried about retirement.
Those who are older and have taken less action, just under 30 per cent feel optimistic about retirement and 23 per cent feel very confident.
Confidence wanes with age and the longer someone goes without a retirement plan.
