Retirement
Major bank raises red flags on household savings
Almost 50 per cent of Australian households are not expected to have sufficient wealth to retire comfortably, according to a big four bank.
Major bank raises red flags on household savings
Almost 50 per cent of Australian households are not expected to have sufficient wealth to retire comfortably, according to a big four bank.
The Commonwealth Bank’s Retire Ready Index reveals that only 53 per cent of households are ready for retirement, a percentage that dwindles to 17 per cent when the age pension is removed.
Just 6 per cent of Australians can sustain a comfortable retirement based on their superannuation alone.
Commonwealth Bank general manager advice Linda Elkins said it was another reminder that Australians have to actively plan for retirement.
“The good news is that many Australians who may not currently be on track for a comfortable retirement are very close [so] a little bit of planning could see them reach the comfortable level,” Ms Elkins said.
The report estimates that superannuation will hold 78 per cent of retirement assets for today’s Millennials. Ms Elkin said younger Australians need to begin planning sooner.
“Many people do not become engaged with superannuation until later in their working lives, but taking a keener interest in superannuation now, consolidating accounts into one super fund and contributing a little more each week can help younger Australians stay on track for a comfortable retirement,” she said.
However, Firefly Wealth director Adele Martin advised young Australians against becoming too reliant on super.
“While on paper super makes sense because of the tax advantages, the other thing you have to bear in mind is, it’s quite a long time before you can access the money so you lose some flexibility and the other thing is the government can restrict it before you make it to retirement,” Ms Martin said.
“Instead, we can build wealth outside of superannuation, and as they get closer to retirement and it becomes more unlikely the government may tinker with it, then superannuation makes more sense.”
According to the index, single women are less ready for retirement than single men, with 22 and 31 per cent prepared respectively.
“Women have longer life expectancies and therefore need more assets to maintain a comfortable level of retirement,” Ms Elkins said.
“Women also generally have lower retirement savings due to career breaks during their child-bearing years and lower average income levels throughout their working lives.”
To boost your superannuation balance, Commbank recommended Australians consolidate their different accounts, have an accurate idea of their retirement needs, and be across the impending super reforms effective 1 July 2017.
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more
Retirement Planning
Empowering your future: Financial literacy and retirement planning in Australia
In today’s complex financial landscape, achieving a secure and comfortable retirement requires more than just saving money. It demands a deep understanding of financial concepts and the ability to ...Read more
Retirement Planning
How much do you need to retire comfortably in Australia?
Retiring comfortably in Australia is a goal shared by many, but achieving this requires careful financial planning and a clear understanding of the cost of living. Read more
Retirement Planning
Retirement planning advice for Australians: Avoiding common pitfalls
Retirement planning is a critical step in securing your financial future, but it's fraught with potential pitfalls that can derail even the best-laid plans. Read more
Retirement Planning
Mastering financial planning for retirement in Australia
Financial planning for retirement is a nuanced journey that requires careful consideration and strategic planning, particularly in Australia's unique financial landscape. Read more
Retirement Planning
Crafting your retirement planning spreadsheet in Australia
Retirement planning is a crucial aspect of financial management, especially in Australia where the landscape of superannuation and investments offers unique opportunities and challenges. Read more
Retirement Planning
Maximising your pension plan in Australia: Strategies for a comfortable retirement
In the ever-evolving landscape of retirement planning in Australia, securing a comfortable retirement through your pension plan has become increasingly important. Read more
Retirement Planning
Supporting our veterans: A guide to financial resources and benefits
Military veterans have made invaluable contributions to their country, and in recognition of their service, there are numerous financial resources and benefits available to support them in civilian ...Read more
Retirement Planning
The ultimate retirement planning checklist for Australians
Retirement planning is a multifaceted process that demands careful attention to financial, legal, and personal considerations. Read more