Just over half (53 per cent) of Australian households are expected to have enough for a comfortable retirement from their combined superannuation savings, personal assets, and the Age Pension, according to the Commonwealth Bank (CBA).
CBA’s commissioned Rice Warner ‘CommBank Retire Ready Index’ report found that number was reduced to 17 per cent when the Age Pension was removed, and six per cent when calculations were based on super only.
However, the report found a further 18 per cent were projected to have 80 to 99 per cent of what they would need to achieve the comfortable retirement standard.
CBA executive general manager of advice, Linda Elkins, said many people did not become engaged with super until later in their working lives.
“But taking a keener interest in superannuation now, consolidating accounts into one super fund and contributing a little more each week can help younger Australians stay on track for a comfortable retirement,” she said.
“In the 60 to 64 year old age group, couples are expected to be better off than singles but will have reduced retire readiness as they have not received the long-term benefits of compulsory Superannuation Guarantee contributions.
Elkins noted that younger age groups were expected to have less in assets at retirement outside of superannuation when compared with their older counterparts.
“The report also shows that more men than women are retire ready. Women have longer life expectancies, and therefore need more assets to maintain a comfortable level of retirement.”
