A new survey report from National Seniors has documented the financial concerns of self-funded retirees during the COVID-19 pandemic.
The report COVID-19 Self-funded retiree’s distress is the result of surveys conducted by the National Seniors lobby group over two distinct periods during the health crisis.
The first survey was conducted between March and April and the second was carried out in June. For each survey, there were 1,100 and 1,294 respondents respectively.
The report reveals how the pandemic has impacted both their financial and mental health.
National Seniors CEO, Professor John McCallum says the report reveals some disturbing responses.
“The distress resulting from these sudden financial losses came through very strongly in the answers we received,” Professor McCallum said.
“There’s a feeling of helplessness with the articulation of a loss of hopes and dreams,” he said.
“Financial and psychological initiatives aimed at relieving this distress and stabilising incomes is urgently needed.”
Around 500 of those who responded to the second survey identified as self-funded retirees.
Among the self-funded retirees who responded to the second survey:
- 85.9% were somewhat or very concerned about the economy in general
- 76.9% were very or somewhat concerned about the value of their investments
- 60.9% were very or somewhat concerned about accessing the Age Pension
- 57.0% were very or somewhat concerned about managing their money long-term
- 41.3% were very or somewhat concerned about managing day-to-day-with money
- 40.5% were very or somewhat concerned about the value of their home
Many surveyed expressed anger and fear about their retirement prospects and the pandemic’s impact on investments.
“My main concern is that my super has dropped by more than $120,000. My wife and I have only just retired at the end of last year. How will we survive now that we have lost so much?” one respondent wrote.
“I am self-funded so the effects on super is my main concern. Will I have to go back to work?” said another.
“…unsure where this is all going…how to get through the next 6 months. Scared,” another survey respondent said.
Among the other common themes expressed by respondents were frustration at the lack of government support and recognition; feeling of being invisible and forgotten; and fear and uncertainty about their income in the years to come.
Professor McCallum said there was a strong feeling of inequity and injustice among self-funded retirees who, despite working and saving hard, now perceived themselves worse off than those on welfare.
“While we acknowledge the challenges age pensioners and younger Australians face with housing affordability, high unemployment and lower paid jobs, self-funded retirees say the lack of acknowledgement from the government makes them feel ‘forgotten’,” he said.
“The distress felt by Australians who aspired to be independent of government support must be acknowledged.”
The report contended that the emphasis on wealth accumulation within the retirement income system had likely contributed to feelings of despair among self-funded retirees.
It concluded that “…superannuation must be redefined to focus on providing adequate lifestyle and buffering worry in later life, as opposed to wealth accumulation”.
To read the full report, click here.
