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ISCOVER
Staff Reporter
A majority of Australian believe they are not properly planning for their retirement.
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According to HSBC’s Future of Retirement survey, Australians expect their savings to last just 11 out of 21 years in retirement.
Contributing to the 10-year shortfall is inadequate planning, a preference for short-term saving, and an underestimation of the cost requirements in later life.
The survey found that, despite the introduction of compulsory superannuation in 1992, the average Australian currently expects 30 per cent of their retirement income will come from the pension, 20 per cent from their super (personal pension), 14 per cent from cash savings, 11 per cent from property, and 8 per cent from shares and investments.
Australians’ high reliance on the pension is less than those from other western markets like the US, UK, France and Canada where the average respondent expects 38% of their income will come from the pension.
Australians have a higher expectation for reliance on super and property investments than other developed markets which focus more on company pensions.
“Whether it is the culturally relaxed Australian attitude towards saving, our high cost of living, or an expectation that our super and pension will cover us in retirement, the reality is many Australians are at risk of getting caught very short, financially, towards the end of their life,” HSBC’s Head of Retail Banking and Wealth Management Graham Heunis said.
