Four-in-10 Australian retirees feel financially insecure while over half of those aged over 65 worry that they are going to outline their savings.
Those are two of the significant research findings which are underpinning an industry funds submission to the Retirement Income Review and which seeks to reinforce the importance of superannuation and the need to ensure the superannuation guarantee rises to 12%.
The research, undertaken by Essential Research and commissioned by the Australian Institute of Superannuation Trustees (AIST) found that more than eight-in-10 Australians believed the Government should ensure that superannuation and the age pension are set high enough to ensure all Australians have a decent life free of financial stress in retirement.
However the degree to which this objective did not reflect current reality was made clear by the research findings that 39% of current retirees feel financially insecure, and that half of over 65s worry that they will outline their savings – a concern which is higher among women (56%).
It also found that almost half of over 65s said that retirement was more expensive than they expected, with 41% saying they couldn’t afford to go to a restaurant or café.
The AIST-sponsored research also found strong support for the compulsory nature of the existing superannuation system and strong support (70%) for lifting the superannuation guarantee to 12%.