The RaboDirect Financial Health Barometer survey results are out for the fifth year in a row, with some worrying results.
Superannuation expectations between 2010 and 2015
Expectations of how financially secure Australians are going to be in retirement have dropped - over the past five years, people have changed their beliefs about how much they'll need when they retire, with voluntary contributions dropping alongside the actual figures.
ASFA says the lump sum we need to support a comfortable retirement lifestyle is $640,000 per couple or $545 for a single person, with partial Age Pension payment.
- Gen Y expects to retire on $514,798
- Gen X expects to retire on $462,444
- Baby Boomers expect to retire on $404,865
Worryingly, in 2015...
- Gen Y expectations have dropped by 13 per cent
- Gen X expectations have dropped by 8 per cent
- Baby Boomer expectations have dropped by 23.5 per cent
Generational differences in voluntary contributions
- 2014 voluntary contributions - Gen Xers (33 per cent) and Baby Boomers (27 per cent)
- 2015 voluntary contributions - Gen Xers (24 per cent) and Baby Boomers (21 per cent)
Gender differences in voluntary contributions
- 2014 and 2015 male voluntary contributions - 37 per cent, 31 per cent respectively
- 2014 and 2015 female voluntary contributions - 21 per cent both years
Is employer super enough?
Many more Gen Yers think that employer funded superannuation would be all they needed to retire on. Gen Y think so - in 2011, 12 per cent believed this, but in 2015, 28 per cent believe it. Perceptions are changing regarding how much we need to live on when we retire.