Super – 9 per cent is not enough
One-third of Australia’s working population, or 3.4 million people, are still failing to take the necessary action to ensure they have an adequate nest-egg for retirement, according to the latest AMP Superannuation Adequacy Index.
The average shortfall is $3,560 a year in today’s terms, with females continuing to have account balances significantly less than males, on average.
Of this group, about half are aged less than 40 years, however, even if they follow the example set by their parent’s generation and contribute more to super when close to retiring, 30 per cent will still not achieve the level of savings required.
Projections therefore indicate that the average worker will receive close to a third of their retirement income from the pension.
However, the news is not all bad — the Government’s Better Super legislation has seen an increase in voluntary contributions, with a 142 per cent spike experienced during the period up to June 30, last year.
Furthermore, the number of Australians that are on track to achieve an adequate lifestyle in retirement has increased from 83,000 to 7.1 million since the previous index, which focused on the second half of 2006.
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