New projections from the Association of Superannuation Funds of Australia (ASFA) anticipate approximately half of retiree households to afford a comfortable retirement by 2050.
Earlier this month, ASFA revealed the comfortable retirement standard was $595,000 for individuals and $690,000 for a couple, assuming access to full or part age pension as the balance is drawn down.
A new report from the industry body has found that around 30 per cent of singles and couples can currently reach or exceed these figures.
By 2050, this percentage is expected to hit 50 per cent of all Australian retirees affording the expenditure needed for a comfortable retirement.
“Strong investment returns together with the super guarantee (SG) reaching the legislated rate of 12 per cent in 2025 will help more Australians achieve a comfortable and dignified lifestyle in retirement, but account balance data indicate that many Australians still have a long way to go in achieving that goal,” the report wrote.
Leeanne Turner, ASFA interim chief executive, expressed her positive outlook on the super sector in delivering benefits to members.
“ASFA projections indicate that as it matures, the superannuation system will play a crucial role in improving retirement living standards in Australia,” she said.
According to the Australian Taxation Office (ATO), the average Australian male aged between 60 and 64 has $402,838 in super, while women the same age have just $318,203.
A recent Finder survey uncovered that $641,223 is the number that Australians predict they will need to save when they stop working, roughly twice the size of what their super balance will be once they retire.
The new ASFA report also discovered that the majority of people pass away with minimal or no super left.
Just 37 per cent of Australians aged 75–79 have any money left in their account balance, with only 20 per cent of those aged 80–85 still having super.
“Not having enough superannuation in retirement is a much greater challenge than the relatively few older individuals not spending all of their superannuation during their lifetimes,” Turner continued.
According to ASFA, online calculators demonstrate that 92 is the age when private retirement savings are exhausted.
Currently, the average life expectancy at age 65 is 85.3 years old for men and 88 years
old for women.
“By age 92, only around 30 per cent of those who were living at age 65 will still be alive, with an average life expectancy of around four years,” the report added.
Yes Jasmine …I think the figures quite rubbery and a big ask considering higher cost of serving a mortgage and employment fluctuations more prevalent nowadays – also assuming super returns are as they should be in volatile market