An industry report shows that millions of people are falling behind in their super savings.
While many are on track to achieve their retirement savings goals, 3.2 million Australians are falling behind when it comes to providing for a comfortable retirement, according to an AMP report.
The AMP Superannuation Adequacy Index for 2007 reveals that 7.3 million Australians are destined for an adequate lifestyle in retirement and adequacy levels have improved by 7 per cent since AMP's report in December 2006.
At the same time however, "the average shortfall among those left behind has increased".
"On average, the 31 per cent of workers below the benchmark face a relative shortfall of 11.4 per cent or $3,646 a year in today's terms," the report said.
The Australian Institute of Superannuation Trustees (AIST) welcomed AMP's findings and said the report supports the association's call for a Government review of adequacy.
"Given that millions of Australians are falling short, particularly the lower paid and women with broken work patterns, we would like to see a lift in compulsory contributions over the long term," AIST chief executive Fiona Reynolds said.
Reynolds would also like to see the $450 monthly income threshold abolished so that more people can qualify for compulsory super contributions, as well as the removal of the 15 per cent contributions tax for low income earners.
Retirees face the risk of running out of money. We asked Macquarie Funds Group's head of longevity risk solutions Andrew Robertson how this can be avoided.... Watch»
Many in the industry would have been bogged down in submissions given the plethora of government reviews. Next year it will be the government's turn to act on the reviews. ... read more »
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