Australians have limited confidence in their ability to adequately save for retirement, with around 44 per cent expecting to run out of money during retirement, according to a survey.
The RaboDirect 2017 Financial Health Barometer survey of 2,300 Australians has revealed that only 32 per cent of Australians make voluntary contributions to super, and that the super gap between what people expect to retire with and what they will need has grown from $268,502 to $353,125 in 2017.
It also found that around 44 per cent of Australians think they will run out of money in retirement.
In terms of contributions, Generation Y had the most positive savings behaviour, with 40 per cent making voluntary contributions to their super, followed by 31 per cent of Baby Boomers and 25 per cent of Generation X.
The survey also revealed that 71 per cent of Generation Y have either used a financial planner or expect to use a financial planner.
Bede Cronin, head of RaboDirect said it was concerning to see a large disparity between what Aussies expect to need to retire with versus what they’ll actually have.
“Even more worrying is that nearly one in five or 18 per cent of Australians are banking on an inheritance to get them through their retirement,” Mr Corin said.
He said it was encouraging to see that Gen Y was being proactive with their finances and setting themselves up for success.
“There are clear benefits for your future by taking small steps with your finances and we’re hoping to see some of this behaviour rub off on other generations.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 23 Aug 2017'No apparent benefit' in ATO position on ECPIBy Katarina Taurian
- 23 Aug 2017Transfer balance cap confusion posing risks for practitionersBy Miranda Brownlee
- 23 Aug 2017TBAR reporting tipped to expose illegal adviceBy Miranda Brownlee
- 22 Aug 2017Contentious views on segregation locked inBy Katarina Taurian
- 22 Aug 2017Contributions spike for 2016-17 financial yearBy Staff Reporter
- 22 Aug 2017ATO targeting illegal retirement schemesBy Staff Reporter
- view all
- Transfer balance cap confusion posing risks for practitioners
Confusion around certain aspects of the transfer balance cap could be leading some practitioners to provide advice to clients based on premi...read more
- view all