Australia ranks sixth out of 43 countries in retirement happiness. New Zealand came fifth and Sweden fourth. Norway won the title, followed by Switzerland and Iceland.
The global fund manager Natixis Global Asset Management`s study was based not only on the financial situation of retirees, but also on indicators of material abundance, quality of life and health. It also rates the performance of each economy, then puts together scores and updates the rankings every year.
Australia`s high quality of life and financial position offset the decline in material wealth and health, with an overall score of 78 percent, flat from last year.
Harlan (Kevin Haran), managing director of Natixis Global Asset Management Australia, said that while both Australia and New Zealand were doing well, they could do better in terms of material wealth. "it can be attributed to income equality, which is much better in northern Europe than we are. We are a rich country, but the distribution of wealth is not balanced. " New Zealand scored the highest in terms of quality of life, such as air quality and well-being. Given the fact that Australia and New Zealand do not have the same cradle-to-grave welfare systems as top-ranked countries, the performance is already impressive.
Universal ignorance
Overall scores, however, mask real differences among retirees, with nearly 600 retirees and more than 400 nearby retirees surveyed showing that about half have no other investments than pensions. More than 16 percent of workers over 60 don`t know how much retirement savings they have, and more than 60 percent feel "confused" or completely unaware of the impact of goverment pension reform on them.
But many close to retirement want to be financially secure after retirement, want to maintain quality of life, reward themselves occasionally, and do not have to worry about money.
The specific reward most often mentioned is travel, and many near-retirement people are eager to explore Australia, go on vacation abroad or go sightseeing with their families.
Back-up overhead
In the Retirement expectations and expenses Bulletin by Milliman, an actuarial firm, the median annual cost per person for 65 to 69-year-olds is A $310168, based on real-life spending by more than 300,000 Australian retirees.
(Association of Superannuation Funds Australia), the Australian pension fund association, says singles need a pension of 24250 Australian dollars a year to live a "simple" life, while a "comfortable" standard requires 59971 Australian dollars.
However, post-retirement spending varies widely across Australia. Canberra`s population is the highest, requiring $38923, while Tasmania is the province, with only $28816. As a result, Canberra residents also need a much higher retirement savings balance ($280444) to cover higher costs, compared with just $191829 for urban residents in Tasmania.
Self-housing is crucial.
In addition to health, the biggest factor affecting the quality of life for retirees is the absence of a house. Milliman found that in Sydney, Melbourne, Canberra and other regions of Australia where rents are the highest, there is also the greatest impact on the availability of housing.
For example, 65-69-year-old Sydney retirees spend $31987 a year if they own their own homes, but if they don`t have a property, they will have to spend another $21679 a year, according to CoreLogic`s median rent.
But the latest census shows housing affordability is declining, with the proportion of self-owned homes falling to 31 percent in 2016, compared with about 41 percent in 1991.
