There is a widely-held perception that history has been very kind to Boomers. They had access to affordable housing and free education, generous welfare benefits and mostly good employment markets. But their super balances won’t be as high as that of their kids and they are going to have the least time to rebuild their wealth for retirement once the global economic crisis is over.
And this could be the reason why Boomers are redefining the concept of retirement by not retiring — at least not in the traditional sense.
Staying in the workforce longer
According to a recent survey by the Australian Psychological Society (APS) one in five Baby Boomers plan to never leave paid work, with more than half saying that enjoying work and keeping an active mind motivated them to stay in the workforce. Forty per cent of Baby Boomers intended to retire in their 60s; while surprisingly the same number (40 per cent) would wait until their 70s; or wouldn’t retire at all.
The survey also found that 60 per cent of Australians were looking forward to getting older and retiring when ready with a fundamental shift in attitudes in what constitutes ‘aged’. The research showed that whether a person was considered ‘aged’ was not determined by birthday, but more related to lifestyle factors and outlook on life.
Importance of super
According to the research, boomers are apparently aware that they only have a limited time to save for their retirement and they put in twice as much each week into their super as those who are aged under 45. But this is still less than the one-third of the weekly amount Boomers say they spend on entertainment and recreation!
If you would like to speak to one our financial planners to ensure you’re on track to live the retirement of your dreams call 13 11 84.