Will you live a comfortable retirement?
The Investment and Financial Services Association (IFSA) recently released a report on Australians retirement in the future and the results were alarming:
The research found that:
- Based on a retirement income target of 62.5% of pre-retirement income (for people earning up to twice average earnings), Australia has an estimated savings gap of $695 billion. This is an increase from $452 billion in 2004;
- For people in mid-career, in almost all cases, the compulsory SG Super contribution is not sufficient to provide an adequate retirement income for any person who lives for the average life expectancy; and
- Almost all of those entering the labour-force now (who will contribute 9% to superannuation for their full careers), still will not accrue sufficient savings to have an adequate retirement income.
We also saw the Treasury Department release their Intergenerational Report, which highlighted that the number of Australians aged between 65 and 84 will double over the next 40 years and by 2050 government spending will outstrip revenue with half of all government spending going towards health care, aged pensions and aged care.
Now more than ever, you need to take an interest in your superannuation to ensure that you will live a comfortable retirement.
For assistance in achieving your retirement income goals please contact us on Freecall 1800 622 892 or email cbc@cbc.com.au
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