Retirement, recession and the rising cost of living

As the cost of living and market uncertainty continues to rise, it’s no wonder less than 15% of pre-retirees expect their retirement lifestyle to be an improvement on their current lifestyle.

The Super Savvy Report 2023[1] by CoreData and Australian Seniors, explores what matters most to our senior community. Surveying over 5,000 Australians over the age of 50, the report found the rising cost of living is the number one financial concern for older Australians. It’s clear our aging community is concerned about staying afloat, with many of those surveyed considering or making lifestyle changes. These changes include:

Almost 8 in 10 are concerned about the impact a major recession and market downturn could impact their retirement savings, with close to 3 in 4 concerned about recovering from a recession when they have minimal time to recoup these potential losses. Interestingly only 1 in 5 feel they have a strong understanding of the impact a major recession may have on their super and retirement preparation.

There’s no doubt that super plays a pivotal role in our financial plans. After all, the higher your super balance, the more money you could have for retirement. However, it’s clear that the rising cost of living and the threat of a recession is front of mind for many as they approach their retirement.

As your financial planner, we can help you be better prepared to weather the potential impact of rising costs of living and to better understand the opportunities and threats of economic cycles.

[1] https://www.seniors.com.au/news-insights/australian-seniors-series-super-savvy-report