Half of the population are at risk of falling short of a comfortable retirement and need to start following steps to accumulate more wealth throughout their working life in order to prepare for the realities of retirement, according to MLC.
Close to half (43 per cent) of Baby Boomers between 50 and 70 would likely not reach the level of funds required for retirement, with 33 per cent of this age group recording just $50,000 or less in super savings.
Commenting on the findings, MLC general manager of customer experience, superannuation, Lara Bourguignon said Baby Boomers should turn their focus to better asset management.
“Some of the people in this age group have other assets such as property in their name beyond super, which is an important factor for them to consider when planning for retirement,” she said.
“Australia has a high level of poverty among retirees, and we believe that super is one of the greatest tools we have to change this.”
Over 30 per cent of Baby Boomers had never checked their super balance, which Bourguignon said accounted for mismanagement of finances and more need for financial planners and communication with super providers.
“Sticking your head in the sand will often lead to unnecessary stress, and that’s why our focus… is to help and educate every generation on the importance and benefits of super,” she said.
“If [retirees] don’t have other assets, engaging with their super fund may prove to be a cost effective way for them to access advice in lieu of seeing a financial adviser.”
Close to three quarters of Baby Boomers with low balances also believed they were past the point of change.
“We want to remind people in this age group that it’s not too late for them to take action and better understand their holistic wealth position as they prepare for retirement,” Bourguignon said.
“They might not have to miss out on the things they love in life.”
