Perth, Jan 20: Thousands of Australians have delayed retirement or returned to work in the past two years as rising living costs bite, new Finder research shows.
A Finder survey of 536 Australians aged over 43 found 18% had either postponed retirement or re-entered the workforce, with 11 per cent saying they did so to ease cost-of-living pressures — equivalent to an estimated 1.26 million people nationwide.
A further four per cent said they resumed work to reduce boredom.
Alison Banney, superannuation expert at Finder, said the dream of a comfortable retirement is slipping further away.
“Rising costs aren’t just squeezing younger Aussies – they’re hitting older people hard enough that some are delaying retirement or heading back to work.
“While a handful are jumping back in because they want something to do, the majority are just trying to stay afloat.”
Finder urged Australians to review their super to ensure they are in a fund with low fees and strong long-term performance, and to avoid paying multiple sets of fees by holding more than one account.
Banney said now is the time to review your super and explore whether a better performing fund could boost your retirement.
“Check you’re with a super fund that has low fees and a history of strong long-term performance.
“It’s also crucial you’ve only got one fund in your name, so you’re not losing thousands of dollars to multiple sets of fees.”
According to ASFA, debt-free homeowners typically need around $595,000 in super for a comfortable retirement if single, or $690,000 for couples.
For a modest retirement, ASFA suggests $100,000 for singles or couples who own their home, but for renters that rises to $340,000 for singles or $385,000 for couples.
Banney said making small contributions can help build savings over time and warned against a “set and forget” approach.
“If you’re in a position to top up your super, even occasionally, it will compound over the years and make a big difference by the time you stop working.”
Banney urged Australians not to take a ‘set and forget’ approach.
“If you’re not keeping an eye on how your super is performing, you could miss out on the equivalent of a full year’s pay – or even more – by the time you reach retirement.
“The difference in returns between funds can be huge. A top performing fund can set you up for a comfortable retirement, while an underperformer can leave you just scraping by.
“It’s a good idea to review your fund every year to see how it stacks up against others, and whether its investment strategy still matches where you’re at in life,” Banney said.
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