The Financial Standard reported that less than 15% of Australians aged 40 to 64 meet the standard set by Association of Superannuation Funds of Australia (ASFA) for retirement savings, according to a survey by Towers Watson and the University of Melbourne.
The research has determined that a significant number of Australians are unlikely to achieve adequate retirement incomes, even if all sources of savings -and not just superannuation and the age pension- are included.
Researchers found that only 53% of couples and 22% of singles surveyed by the Household, Income and Labour Dynamics in Australia (HILDA) Survey are on track to have a comfortable level of retirement income as set by the ASFA Retirement Standard. However, if non-super retirement savings are excluded, the levels drop to 32% of couples and 11% of singles.
If the age pension is excluded, only 15% of couples and 5% of singles are expected to meet the standard. “While super savings are only part of the equation, members then need to take retirement income from other sources into account,” Towers Watson Australia senior consultant John Burnett said. He added that the projected retirement income of couples is much higher than for single people.
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