POWERED BY MOMENTUM MEDIA
Poor health to test super savings
Australians' ability to save for their retirements will be tested by poor health cutting their working lives short before they are eligible for the Age Pension, research reveals.
The AMP.NATSEM report, Going the distance – working longer, living healthier, found that in 2035 one in four Australian's in their 60s will have limited potential to work due to poor health, despite the Government increasing the age they can access the Age Pension to 70.
"In 2035, the majority of retired or unemployed Australians in their sixties will not have enough superannuation for retirement," the report said.
"If the pension age is raised to 70, many Australians will need to consider working longer to have an income and build more retirement savings.
"The ability of Australians to work longer is directly linked to health with a much higher chance those aged over 60 will work full or part-time when they assess their health status as good, very good or excellent rather than fair or poor.
"The key issue for Australia is that between 60 and 70 years of age, the proportion of people reporting fair or poor health increases.
"For those expected to be in fair or poor health, the majority of men and more than two thirds of women are likely to be unemployed.
"It is these Australians who may struggle to participate in the workforce if the pension age is increased to 70 years.
"The challenge is how the nation and employers can support future generations to remain in the workforce longer in environments that allow flexibility and the ability to transition to retirement."
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
