POWERED BY MOMENTUM MEDIA
Australians unprepared for life on age pension
Most Australians are confused about the age pension even though many of them will be completely reliant on it in retirement, a survey has found.
Thirty-four per cent will need the full age pension post-retirement, but Sunsuper's survey of more than 1500 Australians found that 88 per cent of those surveyed do not know how much the age pension will provide.
Although over a quarter (28 per cent) thought they knew, less than half of these (43 per cent) answered correctly when asked. Most over-estimated its value and 18 per cent thought the age pension was double its real value.
Sunsuper customer service general manager Steven Travis said the results were shocking: 70 per cent of retirees will receive at least a partial pension but do not realise the kind of lifestyle it will provide for.
"Most Australians dream of travelling around Australia or overseas and pursuing new hobbies in retirement. However, most people don't realise that the current maximum age pension is $733 for singles and $1,106 for couples per fortnight," he said.
"Based on Sunsuper's lifestyle modelling, if you were completely reliant on the age pension in retirement it would mean only eating out occasionally at budget food outlets, saving hard for one or two short breaks near home each year, relying on the public health care system and free benefits to cover medical costs and only participating in free or minimal-cost leisure activities."
Although 40 per cent know the pension is based on an income and assets test, only 23 per cent of those are baby boomers, according to the survey.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
Assistant Treasurer Stephen Jones has defended the government’s plan to modestly cut tax concessions for Australia’s wealthiest superannuation accounts, saying it is a “fairer outcome”.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
