Future retirement incomes are falling along with falling share market returns and voluntary super contributions, according to the AMP Superannuation Adequacy Index for the six months to June this year.
It said Australians are expected to retire on an annual average income of $41,992 in today’s dollars — $25 or 3 per cent less than for the index period to December last year.
Almost four million Australians (or 37 per cent of the workforce) were found to be behind what they need for an adequate retirement — a 7 per cent increase on the previous index.
Super balances fell by an average of $1,362 per member or 3.1 per cent for the six months to June this year, but remain above where they were at June 2007, it said.
The balances of older Australians were the hardest hit, with index balances for those aged over 55 years falling by 8.9 per cent.
However, AMP financial services managing director Craig Meller predicted super adequacy would improve over the longer term as market conditions improve.