The global market downturn has brought about a more pessimistic attitude towards retirement savings, with 50 per cent of survey respondents indicating their superannuation would be their main source of income in retirement, according to the Institute of Chartered Accountants in Australia (ICAA).
This proportion is down from 79 per cent three years earlier.
In addition, 65 per cent of participants thought the compulsory super contributions of 9 per cent would not be enough to provide an adequate level of superannuation to draw from in retirement.
These results showed people are gaining a better understanding of their financial affairs, according to ICAA chief executive Graham Meyer, but he added there was still room for improvement in the general level of financial literacy.
“Improving financial literacy skills is an ongoing issue that will assist many Australians to make better and more informed financial decisions about their future,” he said.
In regard to superannuation balances younger members were found to be more aware of their overall situation, with 50 per cent of participants between the ages of 25 and 39 knowing how much money they had saved in this manner.
The survey also found 67 per cent of Australians would like to redeem their superannuation entitlements via an income stream as opposed to a lump sum payment.
“This shows Australians understand the need to provide an ongoing income stream for themselves in retirement, which is a very positive attitude and indicates Australians know they need to take some responsibility,” Meyer said.
