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Are you worried your super will run out too soon?

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A morbid topic it may be, but will you have enough savings in super to guarantee a comfortable living until the light at the end of the tunnel? According to international insurance and financial services business MetLife, the majority of Australians are nesting a meagre sum for retirement, with few doing more to secure a stable income throughout their twilight years.

According to the ‘Study of International Employee Benefits Trends’, an aging population and overconfidence in government benefits is threatening the superannuation model and the comfort of those approaching retirement.

According to the study, 58 per cent of those surveyed have not done any planning for retirement, other than the compulsory nine per cent superannuation.

This present many problems, as we face an ageing workforce, which within 40 years, will increase to more than 25 per cent of the population. With the average expectancy 80.6 years and 41 per cent of Australian employees hoping to retire in their 50s, there is a likelihood that their nest egg might not be enough to sustain them.

“Given their ambitious plans for retirement and their long life expectancy, most Australians are worried about having enough money to afford it,” says the report.

In fact, while 49 per cent of Australian employees say they are extremely concerned they will outlive their retirement savings, only 42 per cent have taken additional steps to plan for retirement above and beyond mandatory superannuation.

Of those who have planned for retirement, only 40 per cent say they are on track to meet their goals. Overall, 43 per cent of surveyed Australians are extremely concerned they will have to work full- or part-time in their retirement years to live comfortably.

“As employees become aware that economic and demographic realities could threaten their visions of financial security and retirement lifestyle, they will increasingly look to augment their current superannuation coverage. This will provide an opportunity for employers looking to improve employee retention rates, as well as for super funds looking for ways to grow their asset base,” concludes the study.

Published on: Thursday, July 07, 2011

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