Boomers still short on retirement needs
Not having sufficient funds for retirement is a cause for alarm among baby boomers in Australia, with more than half expecting to run out of money after retiring, according to the latest RaboDirect National Savings and Debt Barometer.
According to the research, baby boomers expect to retire with $400,000 in superannuation - half of what they think they will need to fund a financially secure retirement; and yet with less than a third of boomers saying they are saving for retirement, the opportunity to take action is clear.
Spokesperson for RaboDirect Renee Amor said Australia's ageing population was showing worrying signs of being significantly underprepared for retirement.
"Our most recent barometer shows that even if baby boomers doubled their superannuation balance between now and retirement, they would still only have approximately half of what they need," she said.
"There also seems to be a huge disparity between the returns being made in these markets and what boomers with super believe will happen in terms of retirement funding return."
Amor said that the issue of boomer Australians carrying debt into retirement was a matter for individual action based on a person's circumstances.
"But the trend should also prompt our policymakers with a clear imperative to do more to encourage greater saving both inside and outside of super," she said.
"Australians heading into retirement saddled with debt sends a very clear signal that more can be done."
Outlining specific steps baby boomers could take to improve their financial situations, Amor called on those people reaching retirement to act - and act now.
"With less than a third of baby boomers actually saving for retirement, RaboDirect is calling on all Australians to act now for their financial wellbeing during retirement by taking some simple steps today," she said.
"Put a savings plan together and ensure your hard-earned cash goes into true-to-label high interest savings accounts that don't charge fees.
"And start to engage with your superfund; if it isn't performing for you, speak to a professional about which funds and investments best suit your life stage and financial needs."
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