IS YOUR RETIREMENT GOING TO BE ADEQUATE?
by Louise Falsone, 26/07/2007

Seven million, or 67 per cent of workers are on track for an adequate retirement.

Three and a half million, or 33 per cent of workers are NOT on track for an adequate retirement  – even including aged pension and other assets – with 2 million of these under age 40.

In this case ‘adequate retirement’ is defined as 65 per cent of a worker’s pre-retirement income.

These are the recent finding from the AMP Superannuation Adequacy Index – the largest superannuation analysis ever undertaken in Australia.

Commissioned by AMP, Access Economics has produced the index revealing how well Australians are prepared for their retirement. Based on data from 320 AMP corporate super clients.

“The Index reveals that:

Australians on average will eventually retire with total superannuation and other assets of $535,036, excluding the value of the family home. This will provide an annual average retirement income of $40,567 from a combination of superannuation, other investments and the aged pension.

Today, the average contribution rate is 12.6 per cent of workers’ salaries, 3.6 per cent more than the compulsory 9 per cent minimum but it rises significantly by age group.

Australians aged 60 and over are contributing a quarter of their income, up to 25.5 per cent, to superannuation.

Tasmanians have the highest current average super account balances at $47,203, followed by NSW ($40,548), South Australia ($37,571), Victoria ($37,301), ACT ($31,874), Western Australia ($30,040), Queensland ($28,580) and the Northern Territory ($25,535). This is partly affected by age differentials across the states.

The average worker will still receive close to one-third of their retirement income from the Pension.”

Are you on track for your retirement? It’s never too early to start considering your retirement. Book a consultation with your adviser to find out what you can do NOW.

Source: AMP Superannuation Adequacy Index: Media Release July 2007