The Household, Income, and Labour Dynamics in Australian (HILDA) Survey indicates only 53 per cent of couples and 22 per cent of singles in the 40 to 64 age group are set to have a comfortable level of income during retirement, based on retirement living standards set by the Association of Superannuation Funds of Australian.
When non-super retirement savings were excluded these levels declined to 32 per cent of couples and 11 per cent of singles, while excluding the pension from the results saw a further drop to 15 per cent of couples and 5 per cent of singles.
Towers Watson senior consultant John Burnett said the research emphasised the importance of super fund members being aware of their projected retirement income.
However, often this information isn’t provided by super funds, said Mr Burnett.
“While super savings are only part of the equation, this is the logical starting point; members then need to take retirement income from other sources into account,” he said.
“Online calculators and financial planners are unlikely to solve this gap alone, unless more members become aware of the shortfall they may be facing.”
University of Melbourne Associate Professor Roger Wilkins said single people will rely more heavily on the age pension than couples.
“Ninety-six per cent of single people and 89 per cent of couples aged 40 to 64 are expected to receive at least a partial age pension at some point during retirement,” said Mr Wilkins.
