Australians are increasingly looking to self-fund their retirement, but many face a shortfall in their superannuation, a new survey by Rabodirect has revealed.
The survey – which encompassed 2,300 Australians aged between 18 and 65 – found 24 per cent of people were hoping to retire on their savings, up from 18 per cent in 2012.In the same period, the number of people planning to draw the aged pension fell from 54 per cent to 47 per cent.Rabodirect group executive Greg McAweeney expressed concern that almost half of all workers hoped to draw from social security.
“This group is not taking any action to change their destiny; more than four in five are not making any voluntary contributions via salary sacrifice or after-tax contributions,” he said.In addition, the survey identified a gap between how much people hoped to accrue in super and how much they would need to fund their lifestyles.The results from Rabodirect show baby boomers expected to add an additional $197,797 to their super funds before retirement, but would need an additional $430,691 to retire comfortably.Similarly, Generation X expects to add $334,613 to their funds, yet needs a further $330,718 to fund their retirement.According to the data, Generation Y were in the best position, expecting to add $476,488 to their accounts and falling short by just $96,251 of the required amount.Mr McAweeney said the survey indicated many Australians were underprepared for their retirement years.“Australia has an aging population, which means future generations may need to fund much longer retirements,” he said. “Essentially, we need our money to work harder for longer. Frankly, compulsory contributions just won’t cut it.”
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