When it comes to money matters, an overwhelming number of retirees are concerned they will outlive their savings, blaming energy costs as the biggest problem. But those long-term worries are offset by considerable wisdom among YourLifeChoices members, based on their responses to Friday’s Flashpoll, Are you prepared for a financial emergency.
An overwhelming majority of respondents indicated they had thought about possible hiccups in retirement and had set aside funds for that purpose.
A whopping 78 per cent said they had an emergency fund and 41 per cent said they had more than $20,000 in that fund. Another 18 per cent had between $10,000 and $20,000 set aside and seven per cent between $5000 and $10,000.
Sixty per cent said they believed they were prepared to deal with an unexpected expense.
About one in five (22 per cent) said they did not have an emergency fund. The main reason (seven per cent) was “I try but I constantly need to tap into my savings”. Nine per cent said they either can’t save enough or can’t afford it.
Most respondents (58 per cent) were confident they would not need to rely on public services to get through a health crisis and a big majority were staunch in their view that they would refuse to consider loans.
And in another sign that members are a wise mob, they gave a strong “no” (89 per cent) to payday loans and an even stronger “no” (93 per cent) to digital payment platforms such as Afterpay. Ninety-seven per cent said they had never resorted to platforms such as Afterpay and 67 per cent said such an option was not a good idea.
Thirty-five per cent of the poll’s 384 respondents said they were fully self-funded retirees and 28 per cent received a part Age Pension.
Are you optimistic about your financial outlook? Is the short-term view better than the long-term?