Baby boomers will need age pension and super
Baby boomers are losing faith in Australia's superannuation system, with 45 per cent saying they are tired of the constant rule changes.
REST Industry Super commissioned the white paper ‘The Journey Begins', which also showed 14 per cent do not understand the system and nine per cent do not trust it.
"This group who started their working lives before the advent of compulsory superannuation are trapped between a rock and a hard place," REST CEO Damian Hill said.
"Baby boomers lack confidence in the stability of the system, and aren't planning on using it as a major part of their retirement planning."
Nearly two thirds (64 per cent) of the 1,000 respondents in the survey think they will need the age pension in addition to their super savings, while 21 per cent were uncertain on what they would need.
Baby boomers seem to be confused on how much is needed for a comfortable retirement. There seems to be a gap on what they think they need and the Association of Superannuation Funds of Australia research shows they need.
Only 26 per cent of respondents say they are clear on what they will need, while over half (57 per cent) say they have a basic understanding. Less than one in five said they have no idea.
The March 2014 ASFA Retirement Standard showed a couple that own their own home will need around $57,817 a year, along with a combined super balance of $510,000.
The survey showed 25 per cent have less than $50,000 in super, 12 per cent have $50,000 to $100,000, and 11 per cent have more than $400,000 while only 4 per cent have more than $700,000 in super.
AUTHOR
Staff Writer
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