There are good arguments for Australians to defer their retirement until age 67, according to new research released by Deloitte.
Deloitte has released its sixth biennial report – The Dynamics of the Australian Superannuation System – the next 20 Years, which has confirmed that while the nation's superannuation system is in good shape and growing, the global financial crisis has had a dramatic impact on many pre-retirees.
Deloitte Actuaries and Consultants partner Wayne Walker, a key author of the report, said the research was showing that despite the $7.6 trillion superannuation asset pool that had been projected for 2033, the potential to generate wealth and prosperity might well be at risk for the average Australian.
He said the GFC had caused more than a ripple for the aggregate system, bringing lasting adversity for those on the verge of retiring, as well as many currently retired Australians.
"Many Australians now approaching retirement have only received super for a limited portion of their working lives as our system is still maturing," he said.
"The concern is that current policy settings, including changes to caps and draw-downs, and the superannuation guarantee increase, will not deliver the lifestyle that the majority of those retiring in the next 20 years are seeking."
Walker said the reality was that many Australians would need to work longer and, where possible, contribute more.
"To that end, our report projects the possibility of Australians deferring retirement by two and five years respectively. The results are significant," he said.
Walker said that by deferring the retirement age by two years to age 67, Australia's asset pool would increase by $400 billion.
"If it were possible to defer retirement age by five years to age 70, another $1 trillion would be added to the system. This will bring the total pool of superannuation assets to $8.6 trillion," he said.
Originally published by SMSF Essentials.
