Only half of Aussies on track to comfortable retirement

10 November 2016
| By Jassmyn |
image
image
expand image

Only 41 per cent of women and 53 per cent of men in Australia are on track to achieving a comfortable retirement income, according to Mercer's latest study.

The study found that Baby Boomers were the least prepared generation in terms of super and that only 16 per cent of Australians made regular voluntary contributions.

Gen X outperformed all other generations with higher incomes and higher levels of voluntary contributions.

Mercer said while 94 per cent of taxpayers earning over $100,000 were on track to a financially secure retirement, the Association of Superannuation Funds of Australia (ASFA) standard for what annual income equates to a "comfortable lifestyle" was relatively low — $59,160 for a couple.

Mercer senior partner, David Knox, said: "The correct investment strategy choice is crucial to ensuring financial security in retirement. Members must also consolidate their accounts and be strongly encouraged to regularly make voluntary contributions".

"Super funds play a critical role in recognising where retirement income gaps are occurring and encouraging underprepared members to actively take control of their financial future," he said.

"Funds must also consider what retirement income is more appropriate for each of their members. Will a high income couple really be happy living off just $59,160 per annum in retirement?"

Knox said the study should act as a warning to both funds and members to act now in order to ensure the financial security of Australians in the future.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

11 months ago
Kevin Gorman

Super director remuneration ...

11 months 1 week ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

11 months 1 week ago

Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Co...

2 days 21 hours ago

Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum....

2 days 21 hours ago

In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges....

2 days 22 hours ago