Australians in the 55 to 64 age group need to forget about their overseas holiday, enhancing their wine cellar and buying a boat and should instead be thinking about topping up their superannuation, according to Aviva’s general manager, group business development, Shaun Williams.
He says the average Australian in their early to mid 60s has a superannuation balance of just $89,000, while those in the early 50s have already surpassed this to have a balance of $93,000.
“While these figures don’t sound very different they’re quite significant for those affected. In most instances, people in their 60s have finished their full time working life and their income stream has dried up,” Williams says.
By comparison, he says those in their early 50s still have a good decade of work either on a full-time or part-time basis.
Williams says the differing superannuation balances highlight the timing disparity of the Australian compulsory superannuation system between age groups with the majority of 60 to 65 year olds having to rely on the age pension to fund their retirement.
He says that right now, 42 per cent of employees aged between 55 and 64 and 46 per cent of people aged between 45 and 54 are making personal contributions to their superannuation.
“These figures are on the increase but it is time everyone realised that they need to be making additional contributions to their superannuation if they want to have a comfortable retirement,” Williams says.
“In the 55 to 64 age group we should see all employees contributing more to their super – they need to be making a significant commitment to their future retirement,” he says. “I suggest they forget the holiday abroad, building a wine cellar or buying a boat for now. They should simply put super first.”
