Millions of Australians do not believe they will have enough super to retire, signalling a major crisis for the nation and its ageing population.
This is the revelation from a recent Finder survey shared exclusively with SkyNews.com.au that found 20 per cent of Aussies – equivalent to 4.3 million Aussies – do not believe they will have enough in their super to “get by” in retirement.
Another 10 per cent said their super balance would be too low but would have enough in other investments by the time they retire.
One in five said they will have enough in super but will need to cut back on their spending in retirement.
Finder’s superannuation literacy expert Pascale Helyar-Moray said these shock revelations show a comfortable retirement may be out of reach for many Australians.
“A lack of adequate retirement savings could leave millions of Australians financially vulnerable in their later years,” Ms Helyar-Moray said.
“There’s a growing fear that retirement will arrive before the money does – leaving many Australians underprepared.”
The research also showed that 27 per cent of Aussies are not sure if they will have enough super to get by in retirement, while 24 per cent were confident they could retire comfortably on their super.
Women were worse off with 22 per cent believing they would not have enough super or investments to comfortably retire, compared to 18 per cent of men.
Ms Helyar-Moray said many Aussies assume they will fall back on the age pension, however, she stressed this “isn’t guaranteed”.
“Your assets could disqualify you from receiving it,” she said.
The Finder expert urged Aussies to make voluntary contributions through salary sacrifice to build a bigger safety net.
“Super earnings below $30,000 are taxed at a maximum of just 15 per cent, which means salary sacrificing into super could help grow your wealth while also lowering your tax,” she said.
“You won’t be able to access your super until retirement, so it’s wise to ease into it – $100 a month may not sound like much, but it can make a real impact over time.”
She also encouraged Australians to shop around to ensure they are getting good returns and are not being slugged with excessive fees.
Data from the Australian Taxation Office showed the average Aussie has $172,835 in super, while the median is much lower at $60,037.
The Association of Superannuation Funds of Australia projects a 30-year-old earning the median income of $75,000 with a super balance of $30,000 could accumulate $610,000 in super by retirement.
This comes above the $595,000 that ASFA estimates is needed for a comfortable retirement for single Aussies that own their home.
Meanwhile, a homeowner couple needs $690,000 in super to reach the same level of financial security.