Based on detailed questionnaires of 2,788 representative workers, with modelling by Rice Warner Actuaries, Australians are far less financially prepared for retirement than previously thought.
Significantly, according to ABS statistics current average retirement lump sum super payouts are around $155.000 with over 70 per cent of Australians retiring with a mortgage. Depending on your outstanding mortgage, it doesn’t leave much of a nest egg to fund a long term retirement.
This paints an even gloomier picture with the numbers being described as "pretty confronting", according to AustralianSuper chief executive Ian Silk.
"If the superannuation guarantee were to remain at 9 per cent, clearly the standard of living for millions of retired Australians will fall well below what they are expecting," Mr. Silk said.
Mr. Silk went on to say that the ramifications in terms of extra age pension and health costs, would be significant for the Federal Budget and whichever party was in power.
The figures take into account the age pension and are based on the ASFA/Westpac definition of a comfortable retirement, which is currently based on an annual income of $39,159.