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.