“When it comes to understanding how Australians finance their retirement, it is very much a two-tiered system. Beyond the age of 65, about a quarter of retirees are either still working or fully self- funded, with superannuation representing a big proportion of their wealth.
Self-funded retirees, says Kevin Smith, a director of planning firm the Professional Super Advisers, are usually pretty well off. While their wealth in recent years has been treading water, most have adjusted to the challenging financial times by investing more cautiously with a focus on term deposits and in some instances managing their spending.”