The majority of Australian baby boomers don’t have enough superannuation for a comfortable retirement and believe they will have to rely on the age pension, a new study says.
An even greater number of over-50s have no idea how much money they will need post-work, according to the research paper released on Monday by REST Industry Super.
A couple needs a combined superannuation balance of $510,000 and an individual needs $430,000, says the Association of Superannuation Funds of Australia Ltd.
The REST study of workers aged over 50 found 64 per cent of respondents thought they would need the age pension to supplement their superannuation and 74 per cent didn’t know how much money they would need in retirement.
“This group who started their working lives before the advent of compulsory superannuation are trapped between a rock and a hard place,” REST boss Damian Hill said in a statement.
Almost half (45 per cent) of respondents said they are concerned by constant changes to superannuation laws, with 14 per cent saying they do not understand the system, and nine per cent not trusting it.
The study found an increased willingness among baby boomers to seek financial advice, but 48 per cent still do not ask for guidance, with cost proving the greatest barrier.
REST surveyed more than 1000 people across Australia who are aged over 50 years and not yet retired as part of the study.