AUSTRALIANS have fallen more then $800 billion behind where they should be if they want to be financially comfortable in retirement. And the gap between what you have saved and what we need is growing by about 5 per cent per year, according to new figures from research group Rice Warner.
AustralianSuper chief executive Ian Silk said older Australians were among the most disadvantaged. Women too were at a disadvantage as they were paid less and spent most of the time out of work-force to raise babies.
"The many baby boomers retiring now have only had the benefit of compulsory superannuation.. for 23 years and it began at just 3 pre cent" he said "the system has several decades to go before it reaches full maturity".
Rice Warner releases a Retirement Savings Gap report each year with the Financial Services Council. The latest published results for June 2014 show the gap grew from $727 billion to $768 billion in just 12 months. Unpublished estimates put the figure at more then $800 billion at June 2015.
"fundamentally we are not saving enough"
The super shortfall is also effected by longer life expectancies and tougher age pension rules.
The latest ASFA Retirement Standard says a retired couple needs an annual income of $58,784 to live comfortably while a single needs $42,861. To achieve this a couple would need savings of $640,000 when starting retirement, while a single would need $545,000.
- Anthony Keane-