As living costs continue to soar, many Australians are finding the Centrelink Age Pension insufficient to meet their basic retirement needs, prompting experts to encourage seeking professional advice.
With the recent indexation increase, singles now receive $1,144.40 and couples $1,725.20 per fortnight. However, a National Seniors and Challenger survey revealed 90% of Aussies over 50 believe this amount falls short.
Understanding Retirement Costs
The Association of Superannuation Funds of Australia (ASFA) estimates singles need $33,134 annually for a modest retirement and $52,085 for a comfortable one, while couples require $47,731 and $73,337, respectively.
Why the Age Pension Falls Short
National Seniors Australia CEO Chris Grice highlights that the age pension struggles to cover essential costs like:
- Private health insurance
- Heating and cooling
- Vehicle maintenance
- Home maintenance
Grice emphasizes, “Retirees need financial security to live with dignity and peace of mind.”
A Game-Changer for Retirement
Former carer Jenny Wynen, 69, shares her concerns about funding retirement. With limited superannuation, Wynen sought financial advice after receiving an inheritance.
“This advice allowed me to retire earlier than planned,” Wynen said. “It’s crucial to seek help; I urge others to do the same.”
Breaking Down Barriers to Financial Advice
ASFA research shows 49% of adults and 40% of those over 65 haven’t consulted any source for retirement preparation. ASFA CEO Mary Delahunty notes, “The cost of advice remains a barrier, but it’s worth it.
Delahunty stresses, “Seeking advice empowers Australians to make informed decisions, ensuring a better post-working life.”
The Centrelink Age Pension alone may not be enough for a comfortable retirement. Seeking professional advice can bridge the financial gap. Don’t let retirement daunt you – take control and plan for a secure future.
Frequently Asked Questions (FAQs)
What is the current Centrelink Age Pension rate?
Singles: $1,144.40/fortnight; Couples: $1,725.20/fortnight
How much do singles need annually for a modest retirement?
$33,134 (ASFA estimate)
What percentage of Aussies over 50 think the Age Pension is insufficient?
90% (National Seniors and Challenger survey)
What can retirees do to supplement their Age Pension?
Consider seeking advice, setting up a lifetime annuity, or optimizing superannuation and savings.