Two thirds of Australians to rely on pension

Two thirds of Australians to rely on pension

Two thirds of Australians currently not retired expect to rely on the government pension at some stage in retirement, according to a recent survey.

The Superannuation Expectations and Concerns report, compiled by UMR Strategic Research and sponsored by Industry Super Australia, also found that 58 per cent do not expect to live comfortably on their super, with 56 per cent expecting to retire with a superannuation balance of less than $300,000.

The younger age groups were slightly more confident about their super, with 59 per cent of all Australians aged 18 to 29 expecting to rely on the age pension at some point in retirement, compared with 76 per cent in the 50 to 69 age group.

Industry Super Australia chief executive David Whiteley said there is a greater number of younger Australians expecting to reap the full benefit of compulsory superannuation, hoping to be largely self-sufficient when they retire.

“This is an encouraging vote of confidence in our maturing super system which is currently worth nearly $2 trillion,” said Mr Whiteley.

“In the immediate term, the over-50s are expecting the age pension to remain in place, either to provide an income or supplement their super, to carry them through retirement.”

Both the pension and compulsory superannuation, Mr Whitely said, are regarded by the public as “essential components of Australia’s social infrastructure”.

“Neither should be exposed to piecemeal change, particularly for the sake of short-term budget savings,” he said.

“To maximise retirement savings, Industry Super Australia believes the freeze on the Super Guarantee should be lifted, the Low Income Super Contribution should be retained and targeted adjustments made to spread tax concessions more fairly, particularly to help the low-paid.”

Two thirds of Australians to rely on pension
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