Reducing financial anxiety in retirement
How seeking advice with HESTA can help you achieve your retirement goals
We work our whole lives in anticipation of the ultimate goal – retirement. For many of us that means not setting the alarm, living life on our own terms and finally having the time to do what we really want to do.
But what if you can’t afford to retire? Or what if you run out of money in retirement? These types of concerns are not unusual. A report by National Seniors Australia found 59 per cent of women and 47 per cent of men are worried about outliving their savings in retirement.
Women worry more not so much because they expect to live longer than men, but because of their roles throughout life. Many are mothers, carers and, more often than not, the people doing the lion’s share of running the household. While rewarding in many ways, these roles can also mean fewer work opportunities, disadvantages in divorce and greater burdens of care.
The report found that quality financial advice was a possible antidote to retirement anxiety. 35 per cent of respondents who received financial advice that met their needs indicated they do not worry about retirement. Another 15 per cent said they previously worried but no longer do.
“We appreciate that for our members, there’s often not been much time to think about the future or to set financial goals. Life’s busy! Time out with raising a family or the experience of a financial shock can also mean savings are less than they’d like,” says Jen Harding, General Manager – Advice Development and Growth at HESTA.
“Many members don’t realise their money can continue to grow through their investments after they stop working, and that even a small amount in super can make a big difference to your future lifestyle. Where we come in is to help members with the best way to get the most out of what they have, aligned to what’s most important to them, while navigating life’s financial surprises,” says Jen.
Expert advice is all part of the service for HESTA members. We offer a range of different advice options, from phone and online to information sessions to one-on-one appointments with an adviser. Because our membership is 80 per cent female, our financial advisers are well equipped to handle the specific concerns of our female members.
A unique perspective
When giving one-on-one advice, HESTA Financial Planners and Superannuation Advisers are acutely aware of the hurdles women face in achieving a comfortable retirement. Developing trust as well as understanding women’s values are key elements of the conversation.
Jen recalls meeting a couple who was very anxious about their financial advice appointment. “They weren’t sure what to expect, were unsure about sharing some of their financial decision making and whether their funds were enough to last them in retirement. In reality they were very realistic with their lifestyle expectations and were easily living within their means.
“After the meeting they made mention that the experience was far less daunting than they imagined. They felt listened to, validated and more confident in taking the next step – in this case, our member was having a discussion the following week with HR about scaling back her work days. After the meeting, she said she felt really reassured and relieved and was looking forward to having that discussion at work,” says Jen.
At HESTA, we’ve long been advocates for improving retirement outcomes for women. Our advisers are no exception. They know that when it comes to retirement, planning is key. By taking the time to engage with your super and access advice, you’re less likely worry about your finances at retirement.
“Often people think that financial advice is about maximising your entitlements while minimising the tax you pay. But the real value in advice, in having control of your money, is having options available to you. This, combined with the peace of mind you get from an expert in their field, just can’t be described in monetary terms,” says Jen.
Issued by H.E.S.T. Australia Ltd ABN 66 006 818 695 AFSL 235249, the Trustee of Health Employees Superannuation Trust Australia (HESTA) ABN 64 971 749 321. H.E.S.T. Australia Limited has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of HESTA. Advice is provided by one of our financial planners who are Authorised Representatives of IFS. Fees may apply. Information about these advice services are set out in the relevant Financial Services Guide, a copy of which is available by calling 1300 138 848. IFS is responsible for any advice given to you by its Authorised Representatives. H.E.S.T. Australia Ltd has shares in the company that owns IFS, but does not receive any commissions as a result of members using their services. HESTA Associate Superannuation Advisers and HESTA Superannuation Advisers are representatives of H.E.S.T. Australia Limited.
This article was sponsored by HESTA.