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life
Cost-of-living pressures are prompting more Australians under 40 to start planning for retirement, according to research commissioned by HESTA1 .
The national survey of 1,000 Australians asked respondents what the economic environment over the past 12 months had caused them to do in relation to their super.
It found that 49 per cent of 18 to 39-year-olds had taken more action to plan for their retirement, such as salary sacrificing or using online calculators to understand if their super was on track.
This compared to 44 per cent of 40 to 54-year-olds and just 29 per cent of 55-plus respondents who said they had taken more action to plan for retirement. This suggests current economic challenges may be sharpening the focus of younger Australians on the importance of planning to improve their financial future.
Boosting ‘retirement readiness’
Increased engagement with super has played a part in almost 200,000 more HESTA members being rated as ‘on track’ for retirement.
For the past 7 years, HESTA has used an in-house model to measure its members’ retirement readiness.
The model is informed by the Association of Superannuation Funds of Australia retirement standard, and provides HESTA with crucial member insights, helping the fund to better tailor support and advice.
Since HESTA began using the model in 2016, an extra 196,000 members have shifted from a ‘modest’ to a more ‘comfortable’ projected retirement lifestyle.
In addition to members engaging more with their super, several factors have been driving the improvement to retirement readiness, including HESTA’s strong financial support services, the fund’s long-term investment performance, and Australia’s world-leading superannuation system.
How HESTA can help
At HESTA, our members’ financial future is at the heart of everything we do.
We recognise how the economic environment impacts our members, and we’ve developed a range of tools and services to support them to improve their retirement outcomes at every life stage.
For those under 40, we offer resources like:
Support for members approaching retirement includes:
- Retirement Hub
- Path to retirement webinars
- Retirement and beyond webinars
- Your super questions answered.
Over the 2023-24 financial year, 68,000 members also used Future Planner, a tool exclusive to HESTA members which helps them plan for their retirement.
Two-thirds of those who used the tool during this period examined the impact of making additional contributions, changing their retirement date, or changing their investment options.
At HESTA, we’re proud to be helping our members build the retirement they deserve so they can face the future with confidence.
1. The research by PureProfile took place between 8-12 March 2024 with a sample of 1,000 people across Australia resembling population by gender, age, state, and location.
your financial future
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