Following consultation with the financial community, Super Consumers Australia (SCA) has developed new retirement savings targets for households.
SCA’s consultation engaged consumers, academics, regulators, industry experts and superannuation funds across 30 organisations.
SCA director, Xavier O’Halloran, said: “Among the most important financial questions retirement-planning Australians face is how much they need to save and what income those savings will deliver in retirement. These new retirement targets are designed to help people answer these questions. They provide a solid ‘rule of thumb’ for what is needed to maintain your living standards when you’re retired
“These savings targets are based on what people spend in retirement with a buffer built in to provide confidence that people’s savings can weather the type of market volatility we’re currently experiencing. Having credible targets, based on actual spending, means people can confidently spend and get on with enjoying their retirement.
“These targets come at a time when the superannuation industry is grappling with the needs of consumers who are approaching retirement. As part of the Retirement Income Covenant, we would expect funds to be using these targets to help members make sense of their retirement income needs.”
The targets, supported by the philanthropic group Ecstra Foundataion, were provided below:
Increased regulatory reform and competitive pressures have meant most corporate funds are struggling to meet the scale required to survive, according to an industry professional.
The final draft of the $3 million super tax legislation remains unchanged and will include the taxing of unrealised gains and no indexation.
Amid Australians’ growing penchant for seamless digital experiences, an industry professional believes the most successful superannuation funds will be looking to leverage technology for their members in a number of ways.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Add new comment