Retirement
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
Retirement
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save.
Aussie retirees face a shortfall as ideal retirement nest egg doubles what super will deliver
As Australians look towards retirement, the desired superannuation balance that many believe will ensure a comfortable retirement has significantly outpaced what they are on track to actually save.
According to a recent Finder survey involving over a thousand participants, Australians estimate they need to squirrel away $641,223 for their retirements, a figure that's alarmingly twice the actual expected super balance at retirement.
This disconcerting gap highlights a burgeoning problem for the soon-to-be retired. Official data from the Australian Taxation Office (ATO) paints a stark picture, showing the average Australian male aged 60 to 64 has a super balance of just $402,838, while their female counterparts have even less, with $318,203 saved up.
To achieve the nearly $650,000 retirement goal, an individual would need to earn $33,397 each year, assuming a retirement age of 64 and an average Australian lifespan of 83. This goalposts seem to be constantly moving, with The Association of Superannuation Funds of Australia (ASFA) suggesting retirees need between $595,000 and $690,000 for a couple — figures that are only set to rise further.
Sarah Megginson, personal finance expert at Finder, voiced concerns over the widening gap between retirement expectations and reality: "Thousands of Aussies are facing a huge deficit when it comes to the size of the ‘nest egg’ they think they’ll need to retire with and the amount they’ll actually have."
She highlighted the increasing life expectancy and cost of living in Australia, urging that retirement savings will need to stretch further than ever before.
The survey also revealed generational differences in expectations, with Baby Boomers estimating a need for $545,548, Gen X aiming for $751,813, Millennials looking at $628,191, and Gen Z anticipating $594,909 for a comfortable retirement.
Megginson offered advice to those looking to maximise their retirement funds. "It’s really easy to forget about super because you can’t access it now, but it’s actually your money, so make sure it’s working in your best interests," she advised.
Amidst the dire projections, Megginson recommends retirees-to-be review their super funds for performance and fees, ensuring they aren't paying exorbitant fees and that their funds align with their risk profiles. She also stressed the importance of consolidating super funds to avoid unnecessary fees, thereby preserving more for retirement.
This wake-up call to assess superannuation arrangements encourages Australians to take charge of their retirement planning and to ensure their golden years are as comfortable as the nest eggs they've long envisioned.
RELATED ARTICLES
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
Superannuation
Actuaries propose three-tier superannuation tax reform
The Actuaries Institute has outlined major reforms to Australia's $4.1 trillion superannuation system, proposing uniform tax rates and new levies on high retirement withdrawals. Read more
Superannuation
Survey reveals Australians' reliance on superannuation for retirement
A new survey by AustralianSuper has found that only 32% of Australians believe they could save for retirement without compulsory superannuation. Read more
Superannuation
AMP launches national campaign to boost super engagement
AMP has unveiled a new national advertising campaign aimed at encouraging Australians to engage more actively with their superannuation. Read more
Superannuation
AustralianSuper urges action on gender pay gap for Equal Pay Day
AustralianSuper, Australia's largest superannuation fund, is calling for increased focus on the gender pay gap and its long-term impacts on women's retirement savings this Equal Pay Day, August 19. Read more
Superannuation
AMP advisers focus on super contributions and home ownership queries
Financial advisers are prioritizing assistance with superannuation contributions, transfer balance caps, death benefits, and home ownership issues, according to recent data from AMP Advice. Read more
Superannuation
Aware Super reports strong 11.02% return for flagship investment option
Aware Super, one of Australia's largest superannuation funds, has announced an 11.02% return for its High Growth accumulation option in the 2024 financial year. Read more
Superannuation
Retirement savings strategies: How to boost your superannuation
Superannuation is a pivotal part of retirement planning in Australia, offering a tax-effective way to save for your later years. As you navigate through your working life, enhancing your ...Read more
Superannuation
Aware Super takes on Australia's gender retirement gap, aiming for financial equality
Aware Super, one of Australia's largest superannuation funds with a 70 per cent female membership, is on a mission to close the gender gap that sees women retire with 30 per cent less super than men ...Read more
