spending continues to slow as baby-boomers save for retirement
24 Aug 2011
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ipac money mentors
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retirement
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superannuation
Baby Boomers continue to see saving for retirement as a priority over continuous spending, with many remaining concerned that they won't have the finances available to retire when they want to.
This is one of the findings of the Australian Retirement Funding and Savings Ratio report released by AMP Capital this week which looked at the the current lack of consumer spending.
The report suggests that while Australian consumer confidence remains weak it will gradually improve in line with the economy, Baby boomers will continue to be cautious as to how much will be available for their impending retirement.
"It seems possible that the standard norms of what constitutes 'adequate' savings - such as historical levels of savings rates, debt to income, or debt to assets - are on their own insufficient metrics to utilise in understanding the current savings rate dynamic," the paper said.
Simon Warner, Head of Macro Markets and Andrew Scott, Portfolio Manager who produced the report remain cautious regarding Baby Boomers ability to continue to save.
"When the household sector does look forward, the scale of underfunding for retirement goals under a variety of realistic scenarios has the potential to generate continuous upward pressure on the savings rate in Australia," they said.
are you considering retirement?
Our recent blog, planning your retirement offers you some great ideas when considering entering into the golden age.
At ipac, we believe the goal of financial planning is to manage your wealth to create a happy and fulfilling life. We can help you discover what’s important to you, cut-back on unnecessary spending and focus on your authentic long-term goals. The Paul Clitheroe article 'super income for retirees' gives Baby Boomers a chance to review their superannuation and consider their financial options in a volatile market.
At ipac, we believe the goal of financial planning is to manage your wealth to create a happy and fulfilling life. We can help you discover what’s important to you, cut-back on unnecessary spending and focus on your authentic long-term goals.
At ipac, we believe the goal of financial planning is to manage your wealth to create a happy and fulfilling life. We can help you discover what’s important to you, cut-back on unnecessary spending and focus on your authentic long-term goals.
Contact your ipac adviser today or phone 1800 626 881 to speak to a client services representative.