Despite having higher investable assets and considerably higher contribution rates than Americans, a State Street survey finds Australians have notably lower confidence in their ability to meet retirement goals than their American counterparts.
While Australian respondents earned 38% less than U.S. respondents, they saved 41% more on average.
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American participants who aren’t confident cite having not saved enough (80%) and having other financial priorities (44%) as the contributing factors.
The Australian paradox debunks the widely held belief that confidence is driven by the balance in a retirement portfolio savings account, says Fredrik Axsater, global head of SSGA Defined Contribution.
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“Both plan sponsors and participants need to consider other factors when assessing confidence, such as culture, the state of the economy, pending legislation, plan design and individual circumstances,” he adds. “It is important that we move away from a singular view of confidence to a broader view of the financial life of people.”
The survey polled more than 3,600 retirement savers across the U.S., the U.K., Ireland and Australia.
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