Baby Boomers are turning into “Baby Gloomers” – a fifth of them face retirement with an unpaid mortgage.
While most say they have given it no thought, a quarter say they will have to dip into their super to clear their mortgage.
Boomers are more likely than most to stash cash at home rather than in low interest savings accounts.
Surveys released this week found of Baby Boomers, born in 1945-64, that:
- Nearly half of 2300 people surveyed by RaboDirect said their financial situation was worse than it was a year ago.
- More than 60 percent expect it to be even worse in the coining year.
- Nearly half feared running out of money.
- One in four said they didn’t manage to save last year, or have no savings.
- A third did not have a will. Of those with a will the average value of their estate was $476,000.
RaboDirect manager Greg McAweeney said there were close to four million Boomers with little time to waste before retirement.
Declining property prices would be a concern for Boomers who may need to sell their homes to clear their mortgages and set themselves up for retirement.
Of the general population, Mortgage Choice spokeswoman Kristy Sheppard said 6 percent of 1000 people surveyed admitted storing money under a mattress or in a similar hiding place.
MasterCard research released today shows more than half of all young Australians plan to save more in the next six months, mainly for holidays and big-ticket electronics and whitegoods.
Only mortgages and rent rated more highly.
Ms Sheppard said older people tended to be most conservative, but it was misguided to miss out on interest earnings or become a potential victim of theft by stashing cash at home.
“Perhaps they have weathered hits to super, have lost trust in financial institutions, or have seen their parents go through the Depression,” she said.