Boomers are ill-prepared for retirement

Aged care providers must prepare for ‘superannuation stress’, according to a new survey which found that over 75 per cent of Australia’s baby boomers hold concerns about the cost of their future care needs.

Fujitsu Consulting’s survey, Baby Boomers Attitudes to Superannuation and Health Care  report also found that almost nine in ten boomers are more worried about their superannuation than they were a year ago.

The report builds on Fujitsu’s 2007 report into future aged care needs, which identified that a large proportion of baby boomers were not adequately preparing for their retirement years and beyond.

Bewteen May and July this year, Fujitsu Consulting conducted telephone surveys with 6,000 baby boomers to obtain a better understanding of their financial situation.

What they found is that while some boomers will be able to fund their own retirements and health care, many will require family or government support.

It found that the majority of baby boomers will not have the means to cover their ongoing health costs using private health insurance, increasing the pressure on the public health system.

“Health Insurance was seen by many as too expensive an option, we expect to see a significant reduction in those using this source of funding thanks to the recent budget changes,” said Fujitsu’s Managing Consulting Director, Martin North.

“We envisage a future where the majority of Baby Boomers will be unable to adequately fund their medical needs.”

Alarmingly, 15 per cent of baby boomers did not how they would fund their health care needs.

This week, Fujitsu will be conducting a workshop at the Australian College of Health Service Executives’ National Congress to develop future health and ageing strategies.