A growing number of Australians are not prepared for retirement, while those already retired fear of outliving their savings, the latest research from Investment Trends shows.
According to the 2016 Retirement Income Report, 44% of the 6987 surveyed over the age of 40 feel prepared for retirement, with confidence levels declining from 49% in 2015.
More than half (51%) of those already retired expect to outlive their retirement savings; up significantly from 33% in 2013.
"The ability to accumulate sufficient wealth, potential falls in the share market and regulatory changes to the superannuation rules are all contributing to Australians' growing angst about their retirement future," Investment Trends senior analyst King Loong Choi says.
Half of the participants said they need at least $3000 per month to live a comfortable lifestyle, yet only one in three currently feel they would be able to achieve this.
Two out of three said they'd use financial professionals such as financial planners or go directly to their super fund to help them reach their retirement goals.
Retirees who used a financial planner allocated nearly twice as much of their savings to retirement income products than retirees who did not use a planner. The unadvised spent four times more of their retirement nest egg on lifestyle expenditure such as renovations, holidays and new vehicles than planned retirees.
The research also found fewer than one in five workers have thought about aged care needs, and typically don't think or plan for this until retirement, which "may end up being too late for them to make arrangements for potential aged care costs," Choi said.
One in three said they either have, or intend to seek more information on aged care by turning to government services or medical professionals.