More than three quarters of Australians won’t have enough superannuation to last them throughout their retirement, a new report from financial services group Deloitte warns.
The report also finds that the increase in compulsory superannuation contributions to 12 per cent – legislation for which was introduced into federal recently – won’t benefit retirees until well after 2030.
In their report Dynamics of the Australian Superannuation System: the next years 2011-2030, Deloitte finds Australia’s superannuation industry will grow in value to more than $6 trillion by 2030, but the average Australian just won’t have enough to comfortably live in retirement.
The estimated super balance for a single male to live a modest lifestyle in retirement is $280,000, according the Association of Superannuation Funds of Australia. However as far as I’m concerned that would only give you a very modest lifestyle.
Deloitte Actuaries and Consultants partner Stephen Huppert said the average retirement balance for a single male in 2030 would be only $217,000, meaning he had a 78 per cent chance of living longer than his super could support.
Clearly more Australians will be relying on the age pension in the future, but what sort of a life will that give you?
So what can you do?
The conclusion is inescapable – you have to look after your own financial future.
That’s why it’s so important to build your own property investment business – one property at a time.
Of course super will play an increasing role for most of us so maybe you should take control of your super by running a self-managed super fund (SMSF). It would be hard to do worse than the majority of corporate super funds. And if appropriate you could consider buying a property in your SMSF now that the rules for borrowing in super have changed.
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