Thought Leadership

Once bitten twice shy

10 min read


01 Oct, 2018

The 2018 National Seniors Social Survey highlighted that the global financial crisis (GFC) still lingers ten years on with 7 out of 10 older Australians concerned about the impact of another potential market collapse.

The survey also showed the importance people placed on having a regular and constant income in retirement, as well as having income that lasts for life.

Ability to cope with another GFC unlikely for most

Just 1 in 14 believed they could tolerate a loss of greater than 20% to their superannuation balances, which is equivalent to the average impact of the last GFC.

But despite these concerns, many still have their savings in market-linked investments. Worryingly, 26% of older Australians who stated they could tolerate zero loss are still fully invested in the market.

Outliving savings a concern

Most people are aware of the increase in time they will have in retirement due to improvements in medical care and living standards. But only 56% of those surveyed have made longer term financial plans for this.

Interestingly, whether they had made financial plans or not had little bearing on their concerns about outliving their savings. 53% worried that they would outlive their savings.

This shows why the importance placed on having income that lasts for life is so high, with 80% rating it 'very important'. Only having regular and constant income was rated higher, with 84% rating it 'very important'.

The 2018 National Seniors Australia report, 'Once bitten twice shy', is based on a survey commissioned by Challenger on the preferences and spending patterns of older Australians. Read the full report.