New research has shown that Australians have only saved enough money to last just three or four years into retirement. This lack of wealth creation looks set to have many Australians facing the unenviable situation of experiencing a life of poverty in their old age.
Not only is the average Australian working less and living longer, but they are also not doing enough to provide for themselves in retirement – approximately 85% of men and 92% of women are now expected to live 20 years beyond the age of 65.
The recently released report from AMP also states that almost 60% of men are leaving the workforce before reaching the age of 65. Due to these circumstances, AMP has called on the government to raise the super guarantee (SG) from 9% to 12%.
Australians have very high retirement expectations but are not saving enough to even afford a comfortable retirement let alone one that meets their expectations.
Research has found that the savings of those retirees currently aged 65 and over - an average of $107,500 for men and $81,600 for women - are only enough to last three years for women and four years for men. According to AMP, those that retire on average earnings would need $40,475 each, per year, for a comfortable retirement.
This shows that people need to take charge of their future financial security.
If you would like to find out more about planning for retirement and how you can create wealth in a safe way, speak to one of the financial advisors at Intellichoice.
