Future retirement incomes falling
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.
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.