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Aussies avoiding retirement savings

The Age, May 5, 2003

People want to travel and be adventurous once they stop work but few have thought much about planning financially for retirement, according to a survey.

The survey, commissioned by the Commonwealth Bank of Australia, found just less than half of working "pre-retirees" expected to be fully retired by age 65.

Sixteen per cent of those surveyed in the 46-64 age group - the pre-retirees - said they are likely to work as long as they are able, while one in two believe they will continue working either full time or part time after the age of 65.

The study found that pre-retirees feel up to 10 years younger than they are and are keen to keep on kicking up their heels, the CBA said.

The Newspoll survey showed 81 per cent were looking to travel in the future and 71 per cent of those surveyed said they were looking to try something new and different, the bank said.

Just above 50 per cent rated spending time with family as their top personal priority, while 34.8 per cent would like to rekindle romance in their future lives.

Commonwealth bank executive general manager retail customer service Stephen Morrow said pre-retirees want to travel and be adventurous when they retire, however they had not necessarily been planning for it financially.

"Pre-retirees today are truly aspirational - no longer should we perceive retirees as people who wear fluffy slippers," Mr Morrow said.

Actress and media personality Denise Drysdale, a pre-retiree, said at the CBA launch that the future for retirees was not about sitting back but "wanting to run with the bulls at Pamplona".

The survey found a large proportion of pre-retirees had given little or no thought to planning financially towards their retirements.

Fifty per cent said they had not made financial plans or seen a financial consultant about planning for their retirement. Those aged 45-54 were less likely than those aged 55-64 to have made financial plans for their retirement.

Only seven per cent of pre-retirees consider financial planning for their future to be a top priority.