Longer life-spans and the estimated $1 trillion retirement savings gap could mean Australians will have to wave goodbye to early retirement plans.
That is the message from MLC and National Australia Bank (NAB), which said the average super balance for men and women between 60 and 64 is currently $155,400, while today’s retiree needs at least $430,000 per person.
NAB Wealth group executive Andrew Hagger said ongoing medical advances and improved quality of life meant Australian retirees can live beyond 86.
“We know that the issue of having enough money to retire is on the minds of most Australians and many are not doing enough about planning for their retirement,” he said.
“Currently 81 per cent of retirees fully or partially rely on the aged pension, and two thirds of Australians will outlive their super by 70 years of age.”
“We encourage people to look at their superannuation like any other savings account – it’s real money and simple changes today can make a major difference later,” he added.
The comments come as MLC and NAB launch a campaign urging Australians to preserve their retirement while being open to working into old age, and get financial advice on saving for retirement, including super.
The campaign includes an interactive exhibit at the Australian Museum – a life-sized diorama showing that retirement could become extinct and retirees an endangered species.
The 'Let’s Save Retirement’ campaign will start spilling over to television, print, outdoor and online channels from next week.
