As the government consults on what the legislated objective of superannuation should be, Challenger’s Jeremy Cooper said it is “is crystal clear” that superannuation is intended to be a source of income for retiring Aussies.
A Challenger-commissioned survey, conducted by National Seniors Australia, found that 83 per cent of pre-retirees, aged 50 to 64, expect super to source income for their retirement.
The results parallel a 2015 National Seniors Australia report, which shows around 80 per cent of seniors say the goal of superannuation is to provide a regular income for the whole of retirement.
“For senior Australians the objective of superannuation is crystal clear: it’s about retirement income. It’s critical for retirees to have a steady, dependable income from super to sustain their lifestyle in retirement. That’s what the survey shows,” said Mr Cooper.
However, despite the survey findings, only 45 per cent of respondents are somewhat confident or very confident that their super savings will last or be adequate for retirement.
After superannuation, the next expected source of income in retirement is government pensions and allowances, with 32 per cent of older Australians expecting their income in retirement to come from these sources.
“This shows that older Australians understand that while super is the main game for retirement, the age pension can make up a meaningful proportion of retirement income. This can be [a] comfort to many Australians, but it’s there as a back-up, not a catch-all,” Mr Cooper said.
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