ASIC Launches Free Retirement Planning Tools on Moneysmart Website

Newsroom

Print Share ASIC has today launched a new range of free and independent tools and resources on the widely trusted Moneysmart website to help Australians to plan for their retirement.

This comes in response to national research showing that around half of Australians approaching retirement worry they could run out of money, yet many want to learn more to build confidence about their future.

With around 2.5 million Australians expected to retire over the next decade, ASIC has made it a priority to understand their needs and provide tools and resources to help them to make good and confident decisions.

The national research shows that:

• 48% of Australians (aged 50 to 66) are worried they will run out of money in retirement.
• nearly a third (32%) feel they are already behind in preparing for retirement.
• only 18% have a clear retirement plan in place. In response, ASIC has developed a consumer awareness campaign which directs Australians to the new Moneysmart Retirement Hub where they will find practical tools, calculators and guidance to support their retirement planning.

A key feature of the Hub is the Retirement Planner which allows Australians to:

• see how much income they could have in retirement from their superannuation, the Age Pension and other income sources.
• understand whether they may be on track for the retirement they want.
• explore how different scenarios could affect their income over time. The planning tool brings together key sources of retirement income in one place, including superannuation, to help Australians answer the key questions many are asking, such as: Will I have enough money? Am I on the right track? and What can I do next?

The Retirement Hub also provides a range of other tools and resources including calculators to understand superannuation balances, Age Pension eligibility and retirement income options.

Moneysmart helps make retirement planning make sense

The need for clearer retirement guidance is supported by the research, which found:

• only 26% of pre-retirees demonstrate a strong understanding of retirement finances, despite 41% saying they feel confident they can manage their finances in retirement.
• 46% report low financial literacy and low confidence managing retirement finances.
• 58% of pre-retirees report they want to learn more about superannuation and retirement. ASIC Commissioner Alan Kirkland said many Australians feel confused and overwhelmed by the complexity of retirement planning.

‘It’s natural to feel uncertain about retirement but without a clear plan in place and that uncertainty can quickly turn into anxiety about whether you will have enough money,’ Commissioner Kirkland said.

‘The new resources on Moneysmart can help people move from worry to clarity - through simple, trusted tools and information to help them understand how they are tracking and plan for their future with greater confidence,’ he said.

Paul, a 61-year-old recent retiree from Sydney, began looking into his retirement options in his early 50s.

He started to self-educate through various online tools as well as keeping an eye on reports that showed how much is needed to comfortably retire, comparing this to his own needs and circumstances.

‘I wasn’t sure where to start but using many free tools and resources, including Moneysmart, helped me understand my options and feel confident about engaging more with a financial adviser and planning my retirement,’ Paul said.

‘I’ve been retired now for 18 months and while I now spend my time doing the things I enjoy, I do continue to keep an eye on our expenses and try to forecast spending for the coming years, so I can accurately budget.’

Australians can access Moneysmart’s retirement tools and resources at moneysmart.gov.au/retirement.

Background

ASIC’s Moneysmart program helps Australian consumers and investors by providing free and independent financial information and tools. Over 11 million Australians visit the Moneysmart website each year. Moneysmart is recognised as one of Australia’s leading trusted sources of independent information for consumers and investors.

Research methodology

ASIC commissioned research to survey 2,065 Australians aged 45–75 to understand the retirement planning and readiness gap. The survey was carried out online.

The findings have been weighted by age, gender, and location, and the sample is representative of the Australian population aged 45-75.

Download

• Key research findings (PDF 392KB)