How much Australians need to retire comfortably, half of Australians anxious about retirement savings

Half of all Australians don’t feel particularly confident about their retirement finances and almost as many don’t have a post-work financial plan, three new reports show.

Just 50 per cent of 2000 Australians surveyed in July said they felt confident about their financial security in retirement, with more than one in three of those older than 65 still feeling financially insecure.

Financial services giant AMP commissioned the survey by independent research company Dynata as part of its new emphasis on retirement services and released the findings on Monday.

Meanwhile, investment manager Natixis said its Global Retirement Index found 53 per cent of Australians said it would take a “miracle” for them to be able to retire securely - up five per cent from 2023.

CoreData Research surveyed 7050 individual investors in 21 countries in February and March for the Natixis report, now in its 13th year.

Natixis said a complicated economic environment, persistent inflation and ageing populations were weighing on retirement preparedness around the world.

Australia retained its seventh position in the Natixis rankings and has been in the top 10 spot for retirement security globally for more than a decade.

Norway, Ireland, Switzerland, Iceland, Denmark and the Netherlands took the top six spots.

“Australia’s superannuation system is among the best globally and it has certainly played an integral role in Australia’s consistent top 10 ranking for retirement security,” Natixis Australia and New Zealand head Louise Watson said.

“Still, it’s concerning that Australians are fearful for their stability in retirement.

“Pressures from inflation, the cost of living and higher interest rates are undeniably crunching retirees’ wallets and increasing uncertainty on how much they can spend in retirement balances and dreams.

“This serves as a reminder that investors need their money to work hard for them at all stages in life to make sure they’re getting the best possible outcome in retirement.”

Australians were among those surveyed who had the most ambitious retirement goals, estimating they would need at least $1.25 million to feel secure.

In France and Germany, the average answer was $350,000, due to generous government benefits and employer subsidies.

AMP said its poll found men were more confident about retirement than women, with 59 per cent of men and 41 per cent of women expressing security about their finances.

Just 19 per cent of single women with children felt confident, the report found.

Australians in their 40s were the least confident by age, with just 38 per cent saying they felt secure about their retirement finances.

A third report, released on Friday, found 48 per cent of all working Australians had no financial plan for retirement, with 26 per cent saying they had “some details” and 25 per cent saying they were well-planned.

Vanguard Australia commissioned a survey of 1800 working-age and retired Australians in February as part of its 50-page research report, How Australia Retires.

Now in its third year, the survey found those younger than 45 expect to need at least $100,000 a year per household to live comfortably - almost double what today’s retirees spend.

“In just two years since our first How Australia Retires report, we’ve seen a sharp rise in retirement income expectations among younger Australians,” Vanguard Investments Australia managing director Daniel Shrimski said.

“It’s clear that needs and aspirations for retirement are evolving - and fast.”