If you go through the Canberra Times, you will find an article by Julieanne Strachan that talks about a number of baby boomers returning to full-fledged or part time work because their Superannuation savings does not have enough legs to carry them through their post-retirement life.
High pension fee erodes Super savings
High pension fee is one reason why the Super savings becomes meagre. Fee in the range of $250,000 for somebody who is nearly 30 years of age now is nothing short of a condescending statement in our times. This way, the person is expected to lose almost 25% of his retirement nest egg in fees alone.
Canberrans are better placed
Canberrans are doing well in terms of Super savings, with their per capita income higher than the national average and rate of unemployment still within control. To come back, measured against the median OECD rate, an average Australian pays nearly 3 times the pension fee. Only if fees were curbed by 50%, we would witness national Super savings leaping by $10 billion.
You can read the original article here.
Worrisome situation for baby boomers
Only about 20% of the baby boomers can hope for a decent post-retirement living. Remaining will have to slog hard way into their 70s. Women, due to their higher life expectancy, are in an even worse position. In comparison to men who will have something like $85,000 to support their later days, women will have only about $58,000. In fact, both will feel immensely vulnerably given that something like $330,000 is required to see them comfortably home in their later years.
Younger generation should plan wisely for retirement
I would like to encourage the younger generation to plan way in advance. If possible, they should attempt to diversify their asset base and look for jobs that they love as you never know till when you need to continue with it. To add, it would only help to settle in a cheaper area if workplace commuting is not a constraint.
How are you positioned in terms of your retirement planning?