A group of Australia’s leading financial researchers is say a ‘she’ll be right’ attitude is leading people to meander towards retirement with little idea of what are adequate savings.
They have developed a new online financial planning calculator to help people reach their retirement goals.
The calculator has been developed by a team of actuaries – Bond University’s Dr Gaurav Khemka, UNSW’s Dr Anthony Asher and ANU’s Dr Adam Butt – together with marketing expert, Professor Ujwal Kayande from the University of Melbourne.
Dr Khemka said the new calculator took less than half an hour to complete.
“While you can’t control changes to government regulations or a job promotion, the three main factors you can manage is how much you spend and save, your asset allocation and when you choose to retire,” he said.
“If you start thinking about those three things early, you get the best picture of how much you should spend taking into account your salary and the lifestyle you want now and in retirement.”
University of New South Wales (UNSW)’s Dr Anthony Asher said that many web-based calculators did not consider how financial decision-making affected the things that matter most to people now.
“It is considerably more engaging and empowering to factor in what is important to people now and show them how their standard of living can remain constant throughout their life,” he said.
You can read more about the retirement calculator project here.