A third of working Australians will struggle to provide for themselves in old age, according to new data.
The AMP Superannuation Adequacy Index shows that 3.4 million Australians still do not have an adequate retirement funding level, defined as 65 per cent of a worker's pre-retirement income.
"The recent sharemarket volatility also highlights the importance of taking a long-term approach towards saving for retirement," AMP Financial Services managing director Craig Meller said.
"Promoting a retirement savings culture is now crucial to helping individuals secure their future as well as reducing the burden on the public system."
The average shortfall for Australians falling behind in preparing for an adequate retirement is an average of $3,560 a year.
This comes despite a rise in voluntary superannuation contributions of 142 per cent in the January-June 2007 study period.
However, half of the total increase in voluntary contributions came from just three per cent of employees.
Contributions were boosted by an option to place up to $1 million in non-concessional super before 30 June 2007, as part of the then Coalition government's Simpler Super legislation.
The data showed that Australians on average will retire with total superannuation and other assets of $572,934, excluding the value of the family home.
According to the research, this will provide an annual average retirement income of $42,219 from a combination of superannuation, other investments and the aged pension.
The index is based on data from 320,000 AMP corporate superannuation clients.
