Pre-retirees risk having insufficient superannuation
A third of Australians aged 50-70 have less than $50,000 in their superannuation.
New research released today by MLC reveals Australian pre-retirees are at risk of having insufficient superannuation available to fund their retirement. Of Australians aged between 50-70, one third (33%) admit to having less than $50,000 in super, and almost half (43%) have less than $100,000.
This is much lower than the retirement standard set by the Association of Superannuation Fund, which predicts a single retiree will need a balance of $545,000 to live a comfortable retirement. And if you don't own your own home, you'll need a lot more.
MLC's research revealed a disconnect between older Australians and their superannuation. Of those aged between 50-70 with a retirement saving of under $100,000, 42% only became concerned about their super balance in their 50s. Even more worryingly, over 30 per cent admitted they never checked their super balance.
General manager of customer experience, superannuation at MLC Lara Bourguignon says it's not too late and urges pre-retirees to take active measures to increase their super now.
"We know that just under three quarters of those with a low super balance believe it is unrealistic for them to improve their retirement savings at this stage of their life. While these results are concerning, we want to remind people in this age group that it’s not too late for them to take action and better understand their holistic wealth position as they prepare for retirement," said Bourguignon.
"For example, we know some of the people in this age group have other assets such as property in their name beyond super, which is an important factor for them to consider when planning for retirement. If they don’t have other assets, engaging with their super fund may prove to be a cost effective way for them to access advice in lieu of seeing a financial adviser."
If you're keen to get your super on track, our guide to superannuation is a good place to start.