Australia’s pension pool at $2.3 trillion is the fourth largest in the world and is still growing. Yet 44% of Australians believe that the savings won’t be enough.
A survey of 2,300 Australians by RaboDirect shows more and more believe they will retire without enough savings and one in five are banking on inheritance to bridge the gap.
The survey also revealed only 32% make additional contributions into their retirement kitty beyond the mandatory 9.5% of their salary and the gap between what people expect to retire with and what they’ll need has grown from $268,502 in 2014 to $353,125 in 2017.
The survey is another indicator that points to some of the shortcomings of the Australian superannuation system. While the nation’s retirement assets are projected to reach $7.6 trillion by 2033, according to Deloitte, the sum won’t be enough for a whole bunch of the nation’s residents.
Some of the other findings of the report include
The mandatory pension contribution will climb to 12% by 2025 from 9.5% now
Australia introduced a compulsory retirement savings plan in 1992 to address the burden an ageing population would exert on the pension system and public finances.
While that has boosted assets, the focus is shifting to adequacy and fees amid low yields and record low wage growth.