Aussies not saving enough for retirement

Australians need to look at long-term saving options that sit outside superannuation if they are to have enough money to maintain their current lifestyle in retirement, according to investment group IOOF.

Research from the firm has shown more than a third of respondents to its consumer survey believe they will not have enough money to maintain their current lifestyle when they retire, with only 29 per cent believing they could carry on as normal. More than one-third of survey respondents still plan to use superannuation as their sole source of income.

“It’s alarming to find out that many Australians believe compulsory superannuation will be enough to maintain their current standard of living, the harsh reality is that in many cases it won’t,” said IOOF's investor solutions general manager, Renato Mota.

Mota added that those looking to top up their super through voluntary contributions would find their saving potential has been limited following recent cap reductions imposed on voluntary contribution levels. As a result, he advised consumers to look at a selection of investment vehicles as a means of saving for retirement.

IOOF’s survey, which was conducted by AC Neilsen, found 33 per cent of respondents saw retirement as the most important thing for which to save, however, almost one-third had yet to begin long-term planning. Shockingly, despite the lack of financial knowledge among Australians, almost 80 per cent of respondents had not sought professional financial advice for their retirement.