Half of Australians do not support SG rise, according to AXA survey

An AXA retirement survey has revealed that only 46 per cent of Australians would support an increase in the superannuation guarantee, nearly half the level of support reported by a BT Financial Group survey released earlier this week.

The BT survey revealed that 87 per cent of respondents supported a gradual rise in the SG to 12 per cent. However, the AXA 2010 Retirement Scope survey showed that only 46 per cent of working Australians said they would support a Government decision to increase mandatory contributions. The AXA survey also revealed that only 5 per cent agreed the Government should lift the pension age, even though 50 per cent believed their retirement income would be sufficient (down from 61 per cent in 2006) and 78 per cent were unable to estimate what their future retirement income would be. About 48 per cent of Australian retirees relied on the age pension.

AXA general manager of sales and marketing Adrian Emery (pictured) said many Australians were ignoring the elephant in the room, leaving it too late to start planning their retirement. He said most waited until they were 55 to start planning when they should start in their 30s.

“Our survey found 73 per cent per cent of 55-60 year olds said they had started preparing for retirement but only 33 per cent of 31-36 year old Australians had started to prepare,” he said. “This doesn’t compare well with the US, where 68 per cent of 31-36 year olds said they had already started preparing.”

Emery stated that Generation X should start seeking financial advice, adding that their financial health needed to keep pace with the extended expectations of living longer.