The ‘average’ new retiree is now self-funded

Financial services provider, Challenger, has released information in a paper titled “Challenger Retirement Income Research” in June 2019.  This can be accessed here Challenger Retirement Income Research June 2019

The research offers several highlights including :

  1. More than half of 66-year-olds (ie new retirees) were not accessing the age pension at all at December 2018 – because their assets and income were too high
  2. 20 per cent were on a part pension.
  3. Only 25 per cent were drawing a full age pension.
  4. The age at which people become eligible to apply for the means-tested age pension increased to 65.5 in July 2017 and will rise again to 66 on July 1 2019.
  5. The average consolidated balance for singles approaching retirement (that is, those aged 60 to 64) exceeded $300,000 in 2016-17. At the household level the average is $400,000

Other infographics and charts are shown below.  Contact us here if you would like to discuss our financial planning services.