Cost-of-living pressures have eroded retiree confidence and prompted many to recalibrate their expectations, according to a new financial services sector report.

The Colonial First State (CFS) “Rethinking Retirement” report surveyed 2250 Australians and highlighted fewer retirees felt they could live comfortably during their golden years.

The annual report found 64 per cent of retirees were able to enjoy a comfortable retirement, down from 71 per cent a year ago, while among those yet to retire, 54 per cent did not see themselves achieving a comfortable retirement, with this increasing to 57 per cent for those over 50.

The cost of living remained a top concern for retirees, with 76 per cent stating their pension payments were being absorbed by essential outlays, such as on groceries and utilities.

Additionally, 22 per cent of retirees were servicing debt with pension payments, with this figure increasing to 30 per cent among those who do not own a home.

CFS superannuation chief executive Kelly Power said challenging economic conditions were prompting more Australians to reach out for help.

“The cost of living has shaken confidence in retirement expectations. However, it has also led to more people engaging with their super and seeking assistance with retirement planning,” Power said.

She noted the report found 41 per cent of Australians had reviewed the performance of their super, up from 36 per cent last year, and 28 per cent had sought advice from their fund, up from 23 per cent last year.

Australians who received financial advice were far more optimistic, with 85 per cent saying they felt on track for retirement, compared to 47 per cent of those without advice.

“The findings once again highlight the positive impact of financial advice, with those who receive advice twice as likely to feel financially prepared and on track to reach their retirement goals,” Power said.

The report found 70 per cent of respondents were interested in receiving information from their super fund on goal setting and 72 per cent would be happy to share their financial goals with their fund.

February 24, 2025
Lara Caughey
smsmagazine.com.au

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David Forrest

Director
BEc (Acc), MBA, CPA, FFin

David has been in the Financial Services Industry for nearly 30 years. He was one of the founding Directors of the successful Financial Planning and Stockbroking Practice, Henderson Gregory Forrest, for a decade. Prior to that, he held senior roles in companies such as ING, KPMG Accountants and AMP. David was previously Chairman of OAMPS Superannuation Trustee Board and currently serves as an independent Board Director for several companies.

David’s extensive experience in all forms of superannuation, including Self Managed Super Funds (SMSF), Defined Benefit Funds, retirement funding through Account Based Pensions, stockbroking with a focus on Direct Share Investment, Taxation/Remuneration Planning, Centrelink, Aged Care and business management, equip him to advise expertly on all aspects of Financial Advice.

Those with a particular interest in superannuation/SMSFs, direct share investment, salary packaging or applying for the Centrelink Pension will find his knowledge and ability in formulating and implementing creative, logical and simple wealth creation strategies a valuable asset.

David maintains a strong personalised client service focus, providing tailored solutions for clients.

Qualifications:

Bachelor of Economics with Accounting Major (BEc (Acc))
Master of Business Administration (MBA)
Certified Practising Accountant (CPA Australia)
Graduate Diploma in Applied Finance and Investment (FFin)

Memberships:

Member of the professional association of Certified Practising Accountants (CPA Australia)

Contact:

David Forrest is an Authorised Representative of Integrity Financial (SA) Pty Ltd ABN 16 133 921 187 — AFSL No 334846

Michelle Forrest

Business Finance Manager
B Bus (Acc), CPA

Michelle’s career has spanned across the Financial Services, Retirement Living and Aged Care industries working in the private sector, not for profit and more recently with the state government for over 20 years. Her experience extends to many facets of the financial services industry, having worked in superannuation administration, technical support and financial planning practice administration.

Commencing with AMP and subsequently working in commerce and accounting roles with companies such as Brambles, Adelaide Bank Retirement Services, ECH Inc and SA Health and Wellbeing, Michelle returns to financial services after working in practice financial management at Henderson Gregory Forrest. This wide range of experience from senior accounting and management roles has provided Michelle with a strong background in business administration.

With an astute financial acumen and keen interest in business improvement strategies, Michelle ensures the smooth running of the Integrity Financial Advisory practice providing valued management support to our personalised client service focus.

Qualifications: