Do Australians have enough for retirement?

Peter Terlato 27 February 2017

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Many will continue working during post-retirement years.

The majority of Australians surmise they'll need to continue working to fund their lifestyle during retirement years, according to the latest survey research.

The Ready to Retire study commissioned by News Corp Australia and Industry SuperFunds reveals the average Australian worker currently has approximately $144,000 in superannuation savings. They expect to accumulate around $350,000 upon retirement, $200,000 less than they will need to live comfortably.

Most (61%) respondents predict their working life will continue beyond retirement years and a significant proportion (72%) believe they'll work longer than they would have liked to provide for themselves.

More than two-thirds (70%) of Aussie workers said they expect to draw a government pension during retirement. One-third (33%) will draw a full pension, a larger proportion (37%) will qualify for part pension payments, while around a quarter (24%) won't likely be eligible for any government assistance.

Just over one-fifth (22%) of Aussies believe they will have enough superannuation funds upon retirement.

Half (50%) of the survey's respondents said they don't actively contribute to superannuation because they don't have money to spare, with one third (32%) dedicated to paying off a mortgage.

Most Aussie's doesn't expect to retire until 64, the survey found. However, if money was no object, they would retire at 51.

While the majority (54%) of baby boomers anticipate working beyond age 65, more worryingly, one in ten (9%) don't think they'll be able to afford to retire at all.

Thinking about picking up an extra Sunday shift for some extra cash? Think again. Late last week, Australia's Fair Work Commission (FWC) reduced Sunday penalty rates across a range of industries.

Separately, the ABS revealed wage growth remained stagnant through the December quarter 2016.

However, self-managed superannuation fund (SMSF) trustees substantially increased non-concessional contributions in the December quarter, with people taking advantage before super rules change.

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Picture: Shutterstock

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