Retirement Confidence Index
We’ve been working with Monash University since 2017 to explore what makes people confident in retirement, and in their transition to retirement. The Retirement Confidence Index (RCI) surveys thousands of Australians each year aged 50 and over. The index uses award-winning methodology1 to determine a score which shows how Australian’s feel about retirement.
4 factors of retirement confidence
The Retirement Confidence Index tells us there are 4 core factors which make up retirement confidence.
These are:
- financial awareness and planning
- health and wellbeing
- social factors
- retirement awareness and planning
| Confidence in retirement | |||
|---|---|---|---|
| Financial awareness and planning (30%) | Health and wellbeing (30%) | Social factors (20%) | Retirement awareness and planning (20%) |
| Financial literacy | Physical health | Social connectedness | Future uncertainties |
| Financial attitude and behaviour | Mental health | Goal setting for retirement | |
| Financial control | |||
| Financial anxiety | |||
4 factors to think about when planning your retirement
-
Show transcript
When you’re thinking about your retirement, money is just one factor to consider.
In fact, there’s a range of things to think about when planning for the next phase of your life, to make sure you can live the retirement lifestyle you want.
The Retirement Confidence Index, carried out by AustralianSuper and Monash University shows that how confident you feel about your retirement comes down to 4 key factors.
- Your financial awareness and skills.
- Your physical health and mental wellbeing.
- How socially connected you are to your family, friends and community.
- And the goals and plans you have in place for your retirement.
If you’re thinking about retirement, or have already retired consider how these 4 factors could guide your thinking.
For example, the study shows that financial awareness improves as you approach retirement.
So, spending some time to understand your finances can help you feel better about the years to come.
People who also took time to improve their financial literacy were found to be less anxious about the financial side of retirement.
Looking after your physical and mental health can help you transition into your new lifestyle and stay positive.
Being connected socially to friends, family and community is key to feeling confident. Your social circle is important.
People who set goals and make future plans report higher levels of retirement satisfaction and find it easier to adjust to their new lives.
Take the time to consider these 4 key factors and how they could help you feel confident about life after work.
The AustralianSuper Monash University Retirement Confidence Index is a 10-year annual survey which commenced in 2017.The information in this video reflects results from the 2022 survey which spoke to approx. 3000 people aged 50 years and over. This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.
Awareness of the key insights can support you in your retirement planning and in your retirement years.
The Retirement Confidence Index score
In 2021, the average Retirement Confidence Index score for Australians aged 50 and over was 65.1 out of 100. In 2022, the score increased by 0.6 to 65.7.
The Retirement Confidence Index produces a score, estimated from the key socio-demographic variables captured in the study. For example, if the participants are male or female, home owners or renters, or single or in a couple. The score indicates general retirement confidence and is calculated out of 100 – with zero being least confident and 100 being most confident.
References
- The Retirement Confidence Index study won the best award for research in ageing in 2018 in the 17th National Conference of Emerging Researchers in Ageing.
- Personal financial product advice is provided under the Australian Financial Services Licence held by a third party and not by AustralianSuper Pty Ltd. Fees may apply
This may include general financial advice which doesn’t take into account your personal objectives, financial situation or needs. Before making a decision consider if the information is right for you and read the relevant Product Disclosure Statement, available at australiansuper.com/pds or by calling 1300 300 273. A Target Market Determination (TMD) is a document that outlines the target market a product has been designed for. Find the TMDs at australiansuper.com/TMD. AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788, Trustee of AustralianSuper ABN 65 714 394 898.