|Uni Graduates Fare Better In Retirement
YOUNG adults hoping to retire comfortably will improve their chances by going to university and saving towards their superannuation now, a report has found.
An annual retirement report by financial services provider Citigrouip found retirement incomes of university-educated Australian retirees, aged 55 years or older, were about $983 higher per month than those who went to TAFE or college.
University graduates had about $1317 more per month in retirement than those with only a high school education, the survey of 400 retirees found.
Citibank head of investments Andrew de Vries said the difference was significant.
"Our findings show that university-educated Australians fare far better in retirement and are more likely to be self-funded in retirement," Mr de Vries said.
"The fact that those with higher levels of education may have earned more during their working lives is further enhanced by the fact that they are also more likely to both obtain financial advice and to start saving for retirement sooner."
The survey shows 51 per cent of tertiary-educated respondents plan to visit an adviser in the next 12 months compared to only 24 per cent of those with only a secondary education.
Those with a university education were also more likely to have begun saving for their retirement before the age of 45.
About 51 per cent of the university-educated respondents began to save before they turned 45, compared with 46 per cent of TAFE or trade retirees and 36 per cent of secondary-educated retirees.
"The truth is that almost everyone will improve their retirement prospects by taking good financial advice and by starting to save and invest sooner," Mr de Vries said.
The report found the university-educated leave behind larger bequests at $607,000 compared with $388,000 among the least educated.
Overall, 87 per cent of retirees that began to save before the age of 40 are confident with their financial position.
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