Australia tops the world for retirement

Australia has been voted as the number one country in the world to retire to. The finding is part of the 2008 AXA Retirement Scope, a global study of more than 15,000 people across 26 countries.

Australia tops the world for retirement Working and retired respondents globally said the foreign country in which they would choose to live 20 years from now was Australia, followed by Switzerland and the United States.

AXA General Manager Sales and Marketing, Adrian Emery, said Australia has long been considered the lucky country, and this survey confirms Australia is the place to be.

“Our lifestyle, climate and landscape make Australia the most desirable destination for people embarking on their retirement,” Mr Emery said.

“Furthermore, Australians enjoy the largest number of ‘bonus years’ in retirement in the world.”

The survey found that the average retirement age among Australians is 57 years of age, and that ‘old’ is at 80 years, giving Australians 23 ‘bonus years’ in which to enjoy a healthy and active retirement.

“Whilst this is great news, financially it offers a new challenge because it means we need to fund our retirement for a longer period than most,” he said.

“It is generally accepted that you’ll need at least two thirds of your current salary to live comfortably in retirement. For a household earning $65,000 per annum today, you’ll need at least $1 million, at today’s value, to live comfortably in retirement.”

Behavioural Scientist Dr Stephen Juan said the 2008 AXA Retirement Scope report highlights a global trend towards retirees seeking a new life once they’ve finished working.

“Australia is very popular as a retirement destination for all of the reasons we Australians have long known,” Dr Juan said. “Aussies believe in giving everyone a fair go, in mateship, and in sharing a good sense of humour – qualities that other nations envy. We look after those in need, especially in the latter years of life, we’re laidback and we’re immensely lucky to live in this country.”

“The world is starting to discover all of this and more about us, so it’s not surprising they want to live here too when their work lives are over. Even our neighbours in New Zealand chose Australia to retire to,” he said.

Contrary to the cross-Tasman rivalry, Australians selected New Zealand as their preferred foreign country to retire to.

The survey also found that 70 per cent of Australian workers believe their income will fall in retirement; however, only 36 per cent think their standard of living will decrease.

Meanwhile, 51 per cent of retired Australians say their living standards have remained the same, and 29 per cent say they’ve fallen in retirement.

“The message is clear, only half of our current retirees have been able to maintain the living standard they enjoyed while in the workforce, so if you haven’t already starting planning for retirement, you should start now,” Mr Emery said.

“Initiatives such as contributing more salary into super, the federal government’s co-contribution and tax incentives for those over 55 years have all made investing into super a much more attractive option than it was in the past.”

“If you sit back and do nothing, you can be assured that you will not be able to enjoy the same living standards you do today,” he said.

The AXA Retirement Scope is a global reference study on retirement, measuring attitudes and expectations of retirement in Australia and internationally.

The survey also found:

Working Australians want to retire by 57.
Fifty-five per cent of working Australians expect to hold a paid job during retirement.
Fifty-eight per cent of working Australians plan to travel in retirement.
Australia has the highest proportion (27 per cent) of retirees undertaking volunteer work.
Ninety-four per cent of working people and 93 per cent of retirees classify themselves as quite’ or ‘very happy’.

Article provided by The Retiree Magazine

Australia tops the world for retirement

The survey also found:

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