A story on news.com.au beautifully asserts that Australians’ saving may not be enough to grant them a decent retirement and the reasons why.
Australians not prepared for a decent retirement
Australians are not well summered when it comes to retirement and they may be coping with it only better than three countries globally, talking in the strict financial sense. Perhaps the only silver lining is that half of our population is willing to acknowledge they have goofed up big.
We languish in global comparison
While the global average is 10%, 16% of Australians feel they will never be able to hang their shoes fully and working into their ’70s might just become a norm rather than an exception. While data clearly suggests that an individual may need $430,000 and a couple $510,000 in their retirement nest eggs, what we have here are men with $197,000 and women with an even paltrier $105,000 in their kitty on an average.
You can read the original article here.
Baby Boomers are going to have it tough
The script has gone berserk for the Baby Boomers. Till quite late into their lives they failed to fathom the need for retirement savings. It was more like an Ostrich Syndrome wherein they resorted to believing that the day of retirement would never approach them. Newsflash: it just did! Consequently, today, they find themselves alarmingly short of what they may need. Women, owing to their higher life expectancy are faring even worse than men.
It is time we shy away from falling into the same trap. Retiring with a million in your Super is quite possible. All that may be required is adding a lot of voluntary contributions, asset diversification strategies, using your Super’s tax system to your advantage, reviewing it as and when possible, and avoiding divorce (if you can).