Cost-of-living pressures motivating almost half of under 40s to plan for retirement

A recent survey conducted by HESTA reveals that nearly half of Australians under 40 are increasingly motivated by costof-living pressures to take action on their retirement planning. The survey, which involved 1,000 Australians, found that 49% of respondents aged 18 to 39 had taken steps such as salary sacrifcing or using online tools to assess their superannuation.

This contrasts with 44% of those aged 40 to 54 and 29% of those over 55 who reported taking similar actions.

Key Findings:

• Rising Awareness

Among Younger Australians: The survey suggests that younger Australians are becoming more aware of the importance of superannuation and long-term fnancial planning, driven by current economic challenges.

• Concern About Retirement Security: A signifcant concern for those under 40 is running out of money in retirement, with 68% expressing worry about affording basic needs as they age. This concern is also prevalent among older age groups but to a slightly lesser extent.

• Gender Disparities:

The survey highlighted that women are more concerned than men about running out of money in retirement (65% of women versus 57% of men). Women also expressed greater concern about potential health issues and medical expenses in retirement.

• Action on Retirement Planning: Across all age groups, 41% of respondents had taken more action in the past 12 months to plan for retirement, while 51% made no changes, and 6% took less action.

HESTA’s Response: HESTA CEO Debby Blakey emphasized the importance of early retirement planning, particularly for younger Australians. She noted that small changes made now could signifcantly impact long-term fnancial security.

Blakey also pointed out that HESTA’s online Future Planner tool has been instrumental for many members, with 68,000 using it in the past fnancial year to explore additional contributions, adjust retirement dates, or change investment options.

Blakey acknowledged the immediate cost-ofliving pressures many Australians face but encouraged taking the frst steps toward longterm fnancial planning, noting that even shortterm planning efforts could yield substantial benefts over time.

Survey Methodology:

The survey was conducted by PureProfle between 8-12 March 2024 and involved 1,000 participants, with the sample refecting the Australian population by gender, age, state, and location.