Retirement Confidence: Why Planning Today Secures Tomorrow’s Dreams
At JBS Financial, we believe that to Retire Right, preparation is essential. As the saying goes, “If you fail to plan, you plan to fail.” This truth is increasingly evident as retirement confidence among Australians continues to decline, underscoring the importance of seeking financial advice to achieve a secure future.
The Confidence Gap: Then vs Now
In 2021, optimism around retirement was relatively high, with 60% of pre-retirees feeling prepared for retirement and 14% reporting they were well-prepared. Fast forward to 2024, and the picture is starkly different. Only 29% of pre-retirees now feel prepared, a drop from 41% in 2023. This sharp decline reflects growing uncertainty in the face of several key challenges:
- Economic Pressures: Rising inflation, volatile markets, and increasing cost-of-living expenses have eroded retirement confidence for many Australians.
- Longevity Risks: Longer life expectancies have amplified concerns about whether savings will last throughout retirement.
- Planning Gaps: Many Australians lack detailed retirement plans or adequate savings strategies, leaving them feeling unprepared for the future.
The Power of Financial Advice
Despite the challenges, Australians who receive professional financial advice report significantly higher confidence and preparedness levels. Recent data reveals the profound impact of working with a financial adviser:
- Preparedness: 76% of advised Australians feel ready for retirement, compared to just 45% of those without advice.
- Savings: Only 10% of advised Australians have less than one month’s expenses saved, compared to 23% of unadvised individuals.
- Confidence in Goals: 71% of advised Australians feel confident in achieving their financial goals, compared to 55% of the unadvised.
- Investment Decisions: 60% of those receiving advice feel confident in managing their investments, compared to 48% without guidance.
Building wealth is a long-term initiative—the earlier Australians access advice, the more opportunity there will be for that advice to positively impact their financial and retirement outcomes. Financial advisers provide critical support in areas such as budgeting, investment planning, estate planning, and retirement preparation. They help tailor strategies to individual circumstances, ensuring a pathway toward greater financial security, clarity, and optimism about the future.
Insights into Advised Australians
Research also shows that Australians with advice are not only more confident but also more proactive in their financial lives. According to The Advisable Australian report, advised Australians are:
- More likely to make informed decisions and feel empowered in their financial journey.
- More prepared for unexpected events, with greater savings and contingency plans.
- More likely to collaborate with other professionals, such as estate planners or accountants, ensuring a holistic approach to wealth management.
This comprehensive support fosters a robust foundation for achieving both short-term and long-term financial aspirations.
Retire Right with JBS Financial
Retirement planning isn’t just about saving—it’s about ensuring your future reflects your dreams. Our retirement advice team specialises in helping Australians navigate the complexities of retirement planning, providing tailored advice to maximise opportunities and minimise risks.
If you’re ready to take control of your retirement journey, our expert advisers are here to guide you every step of the way. Let us help you gain confidence, build wealth, and secure the retirement you deserve. Because failing to plan is planning to fail—and together, we’ll make sure you Retire Right. Reach out to our team here.
References:
Australia’s Retirement Reality
Retirement Confidence Hits 10-Year Low
Netwealth: The Advisable Australian