Why millions of Aussies are falling behind on superannuation savings
Millions of Aussies are falling behind on their superannuation savings, with nearly one in two Australians on track for a grim retirement.
According to research from superannuation and investments company Vanguard, this huge number of Australians have no idea how much they are playing in fees to their super funds, which can greatly impact how much you have in savings when your retirement day comes.
“We are coming up against a stubborn statistic in our retirement research again this year — almost one in two Australians still don’t know what they pay in super fees,” Vanguard Investments Australia managing director Daniel Shrimski said.
Also adding to the confusion of how much is needed for comfortable gold year is different companies sharing conflicting numbers on what figures to strive for in your superannuation.
Superannuation consultancy company Australian Retirement Trust’s latest research shows the average superannuation balance for someone age 35 to 44 is $92,700, however this should be closer to $156,000 to be on track for a “comfortable retirement”.
The average worker aged 55 to 64 has $285,900 in super but a 60-year-old needs close to $453,000 in retirement savings, ART said.
“In the past 12 months, only one in five of us has checked our super balance,” Australian Retirement Trust executive general manager Anne Fuchs said, adding 70 per cent of Australians feel they don’t have enough money to retire on.
“We talk to members all the time who have reached the end of their working life full of regret, wishing they had done something earlier. Australia has a monster problem whereby not enough of us are engaging with our super."
“The earlier you start paying attention and understanding how your money is invested ... then you’ll really be able to finish work and put your feet up.”
Financial consultancy Link Wealth director and financial adviser Joshua Lee told 7News that one of the most important tips for Australians is to take notice and understand their superannuation payments and what they pay in fees.
“Take notice of what your account is doing,” he said.
“Look at your statement when it comes in every year so you can understand what fees are being deducted from your account because that will have an impact on how much money you have come retirement.”
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