$2.3 trillion and growing, yet almost half of Australians think pension savings isn't enough

Photo: Getty Images

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

  • Gen Y is demonstrating the most positive savings behaviour, with 40% making voluntary contributions to their super, followed by 31% of Baby Boomers and 25% of Gen X
  • The super gap between men and women remains, with women expecting to have nearly $200,000 less at retirement then men. However, 30% of women are more likely to use a financial planner compared with 23% of men.
  • 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.

    NOW WATCH: Money & Markets videos

    Business Insider Emails & Alerts

    Site highlights each day to your inbox.

    Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.