Welfare still main income for retirees
Retirees receiving government benefits may have declined since compulsory superannuation came in, but government benefits still remain the main source of income for the group.
That is the finding from Roy Morgan research, which said 78.6 per cent of Australians over 55 years are currently recipients of some sort of government benefit.
This is down from 82.9 per cent four years ago, the Single Source survey said.
On the other hand, 41.3 per cent of retired Australians over 55 have superannuation, up from 33.5 per cent four years ago.
“Almost nine out of ten people aged 55+ intending to retire in the next 12 months (87.7%) have superannuation, one fifth have property investments (19.7%) and 6.1% have managed investments,” ,” industry communications director at Roy Morgan Norman Morris said.
“This will lead to a continued trend of less reliance on government benefits in the years to come.”
More Australians are also delving into property investments over the same period, with 7.2 per cent of retirees over 55 having property investments, compared to 6.4 per cent four years ago.
“While 79% of retirees own their home outright, maintaining a similar standard of living as pre-retirement would be impossible for some, with the average income among retirees being far below the average.”
Retirees’ average income has risen from $21,020 to $24,630 per annum, but this still remains well below the Australian average of $45,000.
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.
