Funding your retirement should be front of mind for all Aussies…because the statistics look frightening!
The harsh reality is that Superannuation account balances continue to fall, despite compulsory superannuation payments for employees having been in place for nearly 30 years. According to data from ASFA (Association of Superannuation Funds of Australia Limited) the vast majority of Australians are withdrawing all of their super funds over the course of their retirement, and much earlier than originally thought. Obviously, superannuation is not the only means to fund retirement, but the following facts have some punch:
- Around 1.7 million Australians over the age of 70 have no superannuation – this is over 60% of the age group;
- The median balance of superannuation accounts for Australians over 70 years is between $110,000 and $149,000;
- Over 90% of Australians aged over 80, who died between 2014 and 2018, had no superannuation balances in the four years before they died;
- Only 20% of Australians aged over 60, who died between 2014 and 2018, had a superannuation account balance when they died;
- Median age of death is 78 for males and 84 for females.
On the positive side, Superannuation Guarantee amounts are set to rise, as early as this year. The rate in Australia has been at 9.5% since July 2013. It will rise to 10% from 1 July this year and continue to rise another 0.5% each year until it reaches 12% as of 1 July 2025. This is great news for younger Australians.
For those closer to retirement, our advice is to come and see us. Our first step is often a simple analysis of what you have and how long it might last. This will include savings, assets and superannuation. From here, you can then make some plans or we can look at introducing you to our Financial Planning team. The sooner you take stock of where you are, the sooner you can make some positive changes for the future.