Aussies hoping to retire on future windfalls: ING Direct
Less than one quarter of Australian households are confident of being able to fund their retirements from their superannuation, and are planning to fill the difference through asset sales or inheritance.
They are also hoping other investments and salary rises will help fund a comfortable retirement, according to the latest ING Direct Financial Wellbeing Index, which is based on the online responses of 1,015 households between 28 June and 2 July 2012.
Overall, 77 per cent did not think their super would be adequate to fund a comfortable retirement, with respondents tipping personal asset sales (21 per cent), other investments (21 per cent), salary increases (16 per cent) and inheritance (10 per cent) as other methods through which they hoped to fund their retirements. 17 per cent said they had given no thought to how they would make up the shortfall.
The survey found a disconnect with Australians and their super: 26 per cent of respondents hold multiple superannuation accounts, 74 per cent don't understand how their super is invested, and 38 per cent are aware of the super shortfall but don't know how to bridge the gap.
Those with a thorough knowledge of their superannuation were more likely to be confident of a decent retirement, according to the survey.
Overall, the financial wellbeing index fell from 106.9 to 105.6 over the second quarter - the lowest since the first index was released at the start of 2010, according to ING Direct.
All major indicators dropped, except for "comfort with long-term investments".
"It is worrying that Australians have such low levels of understanding - and confidence - in the nation's $1.34 trillion pool of superannuation savings," ING Direct chief operating officer Anne Myers said.
"The complexity of our superannuation system has undoubtedly contributed to the disconnect we feel with our retirement savings," she said.
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