A new survey commissioned by REST Industry Super has found that over one third of those entering retirement are completely unprepared for it. More alarming, over two thirds haven’t even sought financial advice.

Their survey of 1200 retirees found a mere 14% consider themselves financially prepared for what lays ahead. The rest are ‘closing their eyes an hoping for the best’ when it comes to funding retirement.

This compliments findings in our own McCrindle Baynes village census of 2011.

REST CEO Damian Hill says that government and the financial services sector will need to work on encouraging people to plan much earlier.

“What we found is some sizeable gaps between what Baby Boomers are envisaging for their retirement and what the reality will be,” he said.

The Association of Superannuation Funds of Australia estimates that $56,236 is the average amount a couple should budget for comfortable retirement.

However, the REST survey found most respondents nominated a figure far below that amount. Yet almost half believe that they won’t have to give anything up in retirement due to financial constraints.

“Research shows that Baby Boomers are largely unprepared for retirement,” said Mr Hill, “with most people leaving it very late to start the planning process".