"At Least 1 Billion Won Needed for a Comfortable Retirement"... Inflation Fuels Retirement Anxiety

Survey of 2,000 Australians

Retirement Fund Needs Increase by 22% in One Year

Preferred Retirement Age is 62, but Actual Expectation is 66

As high inflation persists, the amount Australians consider to be an appropriate retirement fund has now surpassed 1 million Australian dollars (approximately 1.083 billion won).

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According to Bloomberg News on May 31 (local time), a survey conducted by Colonial First State (CFS), an Australian pension and asset management company, of around 2,000 Australian adults found that respondents believe they need, on average, more than 1 million Australian dollars for a comfortable retirement. This is an increase of over 22% compared to a year ago (about 817,000 Australian dollars).

The survey showed that while Australians hope to retire at age 62, they actually expect to work until 66. Marisa Foa, Executive General Manager of Retirement and Growth at CFS, stated, "Rising living costs, soaring inflation, and various factors such as family support are all having an impact," adding, "As people pay more attention to their pension accounts, they are checking their current asset levels and considering how long those assets will last."

Australia's total pension assets amount to 4.5 trillion Australian dollars (approximately 4,872 trillion won), making it one of the world's major pension systems. However, Bloomberg noted that the results of this survey highlight growing anxiety among Australians regarding their financial situation after retirement.

With about 2.5 million people expected to retire over the next decade, the pension industry is under pressure to devise a variety of ways for retirees to utilize their assets after retirement.

Australia has been suffering from high inflation even before the Iran war. Excluding highly volatile items, the average annual consumer price index in April stood at 3.4%, exceeding the Reserve Bank of Australia's (RBA) target range of 2-3%.

The survey found that women experience more retirement-related stress than men. About 62% of female respondents said they worry about not being able to secure enough living expenses after retirement, compared to 48% of men.

Executive General Manager Foa explained, "On average, women's lifetime earnings are lower, which has an impact," and added, "Statistically, women are more likely to experience career interruptions, and this trend was reflected in the survey results."

Women are more likely than men to retire with less pension assets due to the wage gap, career breaks for childrearing, as well as part-time and non-regular work.

Australia's pension system operates on a compulsory accumulation basis. The contribution rate initially started at 3% of wages but has now increased to 12%. Accordingly, the longer and higher a person earns, the more assets they can accumulate by retirement.

The median pension asset for men aged 60-64 is about 220,000 Australian dollars (approximately 240 million won), while for women in the same age group, it is about 163,000 Australian dollars (approximately 177 million won). However, as the effects of increased contribution rates accumulate, the total pension asset size is expected to grow in the future.

The Association of Superannuation Funds of Australia (ASFA) estimates that a comfortable retirement at age 67 would require 630,000 Australian dollars (approximately 682 million won) for singles and 730,000 Australian dollars (approximately 790 million won) for couples. According to ASFA data from October last year, a 30-year-old median income worker with 30,000 Australian dollars (approximately 32.5 million won) currently in their pension account is expected to accumulate about 610,000 Australian dollars (approximately 660.5 million won) by retirement.

This content was produced with the assistance of AI translation services.