Adequacy of savings still a concern among Australians
The latest research into superannuation showed a significant proportion of Australians were still concerned about having enough money saved to fund their retirement.
The “RaboDirect Financial Health Barometer 2017 Super & Retirement Report” found 44 per cent of Australians did not believe they had enough money to fund their retirement.
Despite this concern, only 32 per cent of respondents said they were making voluntary contributions to their superannuation account.
“There’s definitely a head in the sand syndrome with people in terms of their approach to superannuation,” RaboDirect head Bede Cronin said.
Cronin pointed out 31 per cent of people were making voluntary contributions when the survey was performed in 2013, “so we haven’t seen a progressive increase in people making voluntary contributions yet”.
Another alarming statistic the report highlighted was a growing gap between the amount of money people expected to need in retirement versus their actual required living costs.
This gap stood at $268,502 in 2014 and increased to $353,125 in the 2017 report.
Further, the research showed 18 per cent of respondents were relying on an inheritance for their retirement savings plan.
“That’s a bit of a call out for me particularly when we start to see people’s expectations of what they think they need in retirement are actually far below what actually independent research suggests is what you’ll need for a comfortable retirement,” Cronin said.
“So there is already a disconnect there from what people think they’re going to have and what they actually will need, and this trend of people saying ‘well, I can just not even worry about it because I’m going to get an inheritance’ is slightly concerning.”
Based on the findings, he said RaboDirect advocated for individuals to start to take an interest in their superannuation and understand the changes to the system to be implemented on 1 July, which were likely to have both positive and negative effects.
The report findings were based on a survey of 2300 Australians aged between 18 and 65.
By Darin Tyson-Chan
15 Jun 2017
www.financialobserver.com.au
Latest Newsletters
Hot Issues
- Aged care report goes to the heart of Australia’s tax debate
- Removed super no longer protected from creditors: court
- ATO investigating 16.5k SMSFs over valuation compliance
- The 2025 Financial Year Tax & Super Changes You Need to Know!
- Investment and economic outlook, March 2024
- The compounding benefits from reinvesting dividends
- Three things to consider when switching your super
- Oldest Buildings in the World.
- Illegal access nets $637 million
- Trustee decisions are at their own discretion: expert
- Regular reviews and safekeeping of documents vital: expert
- Latest stats back up research into SMSF longevity and returns: educator
- Investment and economic outlook, February 2024
- Planning financially for a career break
- Could your SMSF do with more diversification?
- Countries producing the most solar power by gigawatt hours
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- Quarterly reporting regime means communication now paramount: expert
- Plan now to take advantage of 5-year carry forward rule: expert
- Why investors are firmly focused on interest rates
- Super literacy low for cash-strapped
- Four timeless principles for investing success
- Investment and economic outlook, January 2024
- Wheat Production by Country
- Time to start planning for stage 3 tax cuts: technical manager
- Millions of Australians lose by leaving savings in default MySuper funds
- Vanguard economic and market outlook for 2024: A return to sound money
- An investment year of ups and downs
- How to tame the market's skewness
- The Countries that Export the Most Wine in the World
- Tips for preparing for the best tax outcomes
Article archive
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
July - September 2017 archive
- ATO to release further guidance on reserves
- A real-world benchmark for SMSF performance
- How is your super going, ready for retirement?
- Our 'hardest' SMSF tasks
- Lack of literacy promotes unrealistic goals
- Young investors: Time is on your side
- Is your SMSF retirement-ready?
- Key Economic Indicators, 2017 - updated
- Investors acting their age
- ATO locks in details, addresses panic on real-time reporting
- Government ‘undermines’ tax system in new moves on property expenses
- Multiple super accounts in a 'gig' society
- Why Australian retirees aren't happy and what we can do about it
- Doing a budget is a good idea but ....
- Technical expert flags estate planning strategies for 2017-18
- Government to shut down salary sacrifice loophole
- Items that heat up your depreciation deductions
- ‘Tens of thousands’ of SMSFs at risk with ECPI
- Do’s and don’ts of estate planning
- LISTO to help boost women’s super
- Smart ways to stretch retirement money
- Low economic growth likely for years
- Recorded Crime - Offenders, 2015-16
- Adequacy of savings still a concern among Australians