The superannuation savings gap in Australia is only closing in net terms, according to research conducted by Rice Walker Actuaries.
The results of the research will be released by the Investment and Financial Services Association (IFSA) later this year, but Rice Walker director, Michael Rice used the last day of the IFSA annual conference in Brisbane on Friday to reveal that the problem of the savings gap substantially remained.
Ricer said that the gap was probably increasing in “gross terms” but when a number of measures, including factors such as the introduction of the superannuation co-contribution regime and the abolition of the surcharge were taken into account, the “net gap” might actually be decreasing.
According to Rice one of the underlying problems for Australia in closing the savings gap is the nation’s improved levels of longevity resulting in a growing number of Australians living longer than their retirement savings are likely last.
“And the people who out-live their life-expectancy will fall back on the age pension,” he said.
Rice said that the increased longevity of Australians meant that every year the savings gap was widening but that measures such as the co-contribution meant that the problem might not be as critical for the next generation.
The Rice Walker research represents a follow-up on that conducted two years ago when it was acknowledged that the savings gap was the equivalent of $600 billion.
