Four out of five self-funded retirees are now concerned about the value of their investments, according to a new report released by Australia’s peak organisation for older Australians.
The National Seniors report titled ‘COVID-19: Self-funded retirees‘ looks at the impact of the pandemic on more than 500 self-funded retirees.
The report indicates that 86% of self-funded retirees are concerned about the economy in general and 77% have concerns about the value of their investments.
Just over half (57%) of respondents are concerned about managing their money long term and 61% are either somewhat or very concerned about accessing the Age Pension.
National Seniors CEO Professor John McCallum says the responses have been disturbing.
“The distress resulting from these sudden financial losses came through very strongly in the answers we received,” Professor McCallum said.
“Financial and psychological initiatives aimed at relieving this distress and stabilising incomes are urgently needed.”
The survey was carried out in two periods, in the wake of COVID-19 in mid-March to mid-April and again in June as it appeared the pandemic curve was flattening.
Respondents also expressed a lack of government support and recognition, a sense of feeling invisible and forgotten and fear and uncertainty about their income in future years.
Being vulnerable to market change can be a tricky spot to be in, and it highlights the reasons why retirement villages are such a good option for retirees.
By nature, villages help you manage the ebbs and flows of big costs like insurance, council rates and capital maintenance on your property.
So, when the market turns, you’re not left up the creek without a paddle.
Discussion1 Comment
The following statements are an embarrassment. Villages cost more in the form of contributions and, at the end, the resident loses a significant percentage of their equity, and also lose the growth provided by freehold title.
Being vulnerable to market change can be a tricky spot to be in, and it highlights the reasons why retirement villages are such a good option for retirees.
By nature, villages help you managed the ebbs and flows of big costs like insurance, council rates and capital maintenance on your property.
So, when the market turns, you’re not left up the creek without a paddle.