Reality bites on super in retirement
The number of working Australians who say they will rely on superannuation as their main source of retirement income has dropped by almost 30 per cent, according to a survey commissioned by the Institute of Chartered Accountants Australia.
The survey showed 50 per cent of working Australians believe they will rely on superannuation as their main source of their retirement income, down from 79 per cent three years earlier.
The decline reflects the effect the economic downturn has had on Australian workers and their understanding of its impact on superannuation, said Institute of Chartered Accountants chief executive Graham Meyer.
Sixty five per cent of respondents also indicated that the 9 per cent compulsory super component alone would not provide enough savings for the average Australian worker in retirement.
Meyer claimed that further education is still required to help people understand the benefits of using their superannuation to save for retirement.
"Improving financial literacy skills is an ongoing issue that will assist many Australians to make better and more informed financial decisions about their future," he said.
AUTHOR
Corrina Jack
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