Report reveals 'alarming' super savings stats

 

 

 

A joint report by National Seniors Australia and Challenger has found that over half of pre-retirees have inadequate superannuation savings, but SPAA believes self-funded retirees are better positioned.

The report entitled How realistic are Australians’ retirement plans? surveyed more than 2,000 Australian senior citizens and found 53 per cent of pre-retirees will have less than $400,000 at the start of retirement – considerably below the $544,000 ASIC estimates the average person will need.

Speaking to SMSF Adviser, SPAA director, technical and professional standards, Graeme Colley, welcomed the sentiment of the report but said SMSF trustees may be a less vulnerable demographic.

“We agree that seniors don’t take into account their longevity and how much it will cost going into retirement,” Mr Colley said.

“Self-funded retirees are definitely better off. I mean they have much more money in their superannuation. We think they are better positioned than most people that have other retirement savings.”

Reflecting on the report, Challenger chairman, retirement income, Jeremy Cooper, described the findings as “alarming”.

“Much of this outcome is driven by the fact that the Australian superannuation system isn’t mature and many retirees have not participated in super for the whole of their working lives,” he said.

The report also found that over half of seniors said they would sell their family home to pay for aged care accommodation and other associated costs.

The report outlined that this attitude indicated that seniors are not “considering the broader implications” of funding aged care.

By contrast, only 8 per cent of participants said they would use funds specifically put aside to finance age care costs.

The report highlighted that this “lends further weight” to the argument that, while seniors are stating they are “planning” for retirement, they are not planning “effectively”.

 

Scott Hodder
Tuesday, 08 July 2014
http://www.smsfadviseronline.com.au/

 

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda has been my financial adviser for 20 years. I have always found her to be highly intelligent, knowledgeable and professional in her career. Rolanda is accessible at all times and patiently explains terms that I do not fully understand. I can highly recommend Rolanda and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)
I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda’s advice, experience and strategies and the returns on my investments. Rolanda is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)
In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda who has given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major losses, of some, during the GFC was not felt by me unduly. Rolanda and her team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia (Ausgrid))
Rolanda has been my Adviser for the past 18 years. Through her wide industry experience and professional expertise she has ensured the sound development and ongoing management of my investments. Her advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. She has a friendly, engaging manner and is always readily available to address any of my concerns. I have no hesitation in recommending her. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)

© 2021 Rolanda Adams Financial Services Pty Ltd. All rights reserved. Site by PlannerWeb.