Australia faces a "looming retirement funding crisis" with Australians becoming increasingly worried that their retirement savings will fall short, according to research from Mercer.
Mercer's Superannuation Sentiment Index found that 30 per cent of working Australians believe they will have enough savings to last past the age of 70, down from 36 per cent in December 2010.
"Australians are generally confused and uncertain about preparing financially for their retirement," Mercer's managing director and market leader, pacific market David Anderson said.
"They understand adequate super is the key to a comfortable retirement but they don't know how to make good decisions that will meet their long-term needs."
Fears over retirement readiness continued to increase with age, with only 23 per cent believing they had enough savings to see them past 80 years of age, down from a December 2010 result of 27 per cent, and only 15 per cent believed it would last past 90 years of age.
This comes despite an increase in people who believe they are "prepared" for retirement, which reached 18 per cent in the latest survey results, the highest level since June 2008.
Mercer said that this coincides with superannuation continuing to be perceived as critical for retirement savings, accounting for 48 per cent of projected funding, while anticipated reliance on government assistance is at an all-time low of eight per cent.
The survey said the retirement age of Australians is not increasing at the same rate as life expectancy, which is why many survey participants are not confident that their savings will last.
Mercer said that industry members need to focus on improving outcomes for clients in addition to upcoming government regulations.
"Super funds, employers, and the government all have a challenge to improve retirement readiness in this country," Mr Anderson said.
"It's a challenge with social and economic worthwhile outcomes, and super funds shouldn't lose sight of the bigger picture while presently entangled in Stronger Super compliance.
