More confidence in their super – for now
Retirees are feeling more confident about their retirement income as a result of improving returns from their superannuation, a new report has found.
The 2nd Seniors Sentiment Index released by National Seniors and commissioned by Challenger, gauged 2,000 older Australians’ views on different aspects of their life as well as their views of society as a whole.
The overall Seniors Sentiment Index increased from 66% in 2012 to 72% in 2013, reflecting growing positivity from seniors about their finances, health and social wellbeing.
National Seniors Australia chief executive, Michael O’Neill, said the number of retirees who were confident that their superannuation would be adequate in retirement increased from 44% in 2012 to 61% in 2013.
“This is a result of sustained recovery in equity markets and a rising share market producing better returns,” Mr O’Neill said.
But while confidence in retirement income had increased in the past 12 months, senior Australians were not so optimistic about their financial wellbeing over the next five years.
Paul Rogan, Challenger chief executive of distribution, product and marketing, said: “It’s hard for retirees to have long term confidence in their super when so much of it is at the mercy of share market cycles.
“Government and industry must work together to deliver better super outcomes for our people once they’re retired and living off their savings.”
In the social wellbeing stakes, the report found a notable increase in satisfaction with the Australian political system, with those ‘at least somewhat satisfied’ increasing from 21% to 30%.
“This may be attributed to the survey being conducted within two months of the federal election and the result of a change in government but overall it is noticeable there is still considerable dissatisfaction with our political system,” Mr O’Neill said.
The proportion of seniors who felt ‘very’ or ‘somewhat satisfied’ with the government’s level of spending in the health system increased from 17% in 2012 to 24% in 2013 which also reflected small improvements in satisfaction ratings in being able to get a doctor’s appointment when necessary.
The 2nd Seniors Sentiment Index follows the inaugural Seniors Sentiment Index which was released in December 2012.
Read the full report.
