Australians aged between 35 and 49 focus mostly on debt reduction and paying off their mortgage rather than saving for retirement, industry super fund REST research found.
In a whitepaper titled ‘What's Next', REST found 71 per cent of this age group have a mortgage, and paying off this debt is their number one priority.
Paying off personal debts and short-term savings come next, while saving for retirement comes fourth on the priority list.
Those who do not have a mortgage prioritise short-term savings for things like education and holidays.
Only those who own their home outright (8 per cent of respondents) said retirement savings was their most important goal.
"Focusing on paying off the house means that over half (51 per cent) of Australians are relying solely on the compulsory super system to save for their retirement — at the very stage of life when they are likely to be in the best position to make additional contributions on top of what their employer is paying," REST CEO Damian Hill said.
Half of the 1,000 respondents have super in a balanced investment option.
Almost one in five (19 per cent) are not saving for retirement at all, including getting employer contributions.
The situation is much more dire for women of this age group, with 30 per cent having no savings at the end of every month, compared to just 23 per cent of men.
Only 59 per cent of women get compulsory employer super contributions, compared to 75 per cent of men in this age bracket.
"There are a number of factors stacked against women when it comes to saving for retirement, often linked to career breaks taken to care for the family," Hill said.
Hill added women could make extra contributions before, during or after their time out of work, or could ask their partner to make contributions during that time.
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