HSBC's Future of Retirement report found that 79 per cent of Australian retirees have experienced a decrease in income upon retiring, with 59 per cent attributing this to the GFC. Forty-one per cent have seen their income decrease by half, almost double that of the global average and well above the United States (16 per cent) and the UK (24 per cent).
HSBC head of retail banking and wealth management, Graham Heunis, said the continuing impact of the GFC on retirees is a result of the strong links between our pension and superannuation systems and equity markets, which saw more than 50 per cent falls after the crisis.
Mr Heunis said the impact of the GFC has emphasised the importance of preparing for unexpected events.
“Many Australians’ retirement plans have been disrupted by the GFC. It is a painful reminder of how we can all be blindsided by circumstances outside of our control and why it is important to provide a savings buffer for unforeseen events,” he said.
The report found that 59 per cent of working Australians currently feel they are unprepared for retirement and one in six working Australians believe they will never be in a position to fully retire, which falls above the global average of 12 per cent.
It is alarming to see many Australians facing the prospect of never being able to fully retire. This is also compounded by a large majority of Australians who realise they are currently undershooting their retirement savings,” Mr Heunis added.
The survey also found that many Australians are considering the idea of semi-retirement, with 52 per cent expecting to move into semi-retirement before full retirement. This is most prevalent among young Australians, with 57 per cent of 25-34 year-olds anticipating a semi-retirement phase.
“The results show that a new retirement landscape is emerging within Australia,” said Mr Heunis.
The report was based on 16,000 survey responses in 15 countries, including 1,000 respondents from Australia.
