Terrifying super reality facing 4.3 million Aussies: ‘Underprepared’
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
Terrifying superannuation reality facing 4.3 million Australians hoping for comfortable retirement
Millions of Australians are facing a bleak retirement, as they don’t have enough savings to support a comfortable life. New data from Finder has found that many will be forced to work well into their 60s and 70s to build up their nest eggs. Finance expert Ben Nash said there are two main things you can do now to ensure you have the biggest nest egg possible. He said a quick health check on your account should be your first port of call. If you’re worried about being behind on your super balance, you can make additional contributions with your spare cash.
Millions of Australians are facing a bleak retirement, as they don’t have enough savings to support a comfortable life. New data from Finder has found that many will be forced to work well into their 60s and 70s to build up their nest eggs before they can finally enjoy their twilight years.
The consumer group discovered 20 per cent, equivalent to 4.3 million people, said their superannuation won’t fully fund their retirement dreams. A further 20 per cent said they’ll only be able to get by later in life if they cut back on their spending now.
Some Aussies could have an even shakier financial future in retirement if they haven’t paid off their mortgage or they are renting, which can be at the whim of price hikes.
Finance expert Ben Nash told Yahoo Finance there are two main things you can do now to ensure you have the biggest nest egg possible.
RELATED
How can I grow my superannuation balance now?
Nash said a quick health check on your account should be your first port of call.
“Make sure your super is in a good fund with good investments,” he said.
“You want the money to be working hard for you, and not just for your super company.
“There are a lot of great super funds out there these days that can be far cheaper, better options for the majority of people… you don’t need a self-managed super fund (SMSF) to get great performance.”
Do you have a story? Email stew.perrie@yahooinc.com
You can log in to your superannuation account to see where your money is invested and some funds have financial advisors who can guide you into an arrangement that suits your age and risk appetite.
myGov also has a handy tool that allows you to compare your super fund with others in the market, which can give you a broad look at how your money might perform.
Nash added that if you’re worried about being behind on your super balance, you can make additional contributions with your spare cash.
Say you had $60,000 in your super right now, and contributed just $10 per week to your account.
Over 20 years, you would have contributed $10,400. But thanks to compound interest, your super account would have been boosted by $319,091, based on a 9 per cent rate of return and monthly compounding.
The Pivot Wealth founder said you should chat to a financial advisor to see if additional super contributions to your employer’s would be a good idea for your circumstances.