We know that superannuation exists to ensure Australian retirees can live comfortably once they say goodbye to the workforce. While the exact amount that is needed in retirement will depend on things like what kind of lifestyle a person plans to have, and what age they retire, retirement standards produced by ASFA show that the average, relatively healthy single Australian can retire comfortably with a super savings of $545,000, while an average couple will need $640,0001.
If you think the average employee knows this, think again. Around a third of employees (36%) report they have no idea how much money they will need to retire comfortably, while 44% are unsure if they will have enough money to retire, and 51% are clueless about how much money they will actually have by the time they reach average retirement age (55.4 years in 2020)2. On top of this, 39% feel they may have to work longer because of the current financial situation, in order to replenish their superannuation funds and meet their retirement savings goals.
1. Association of Superannuation Funds Australia (2018): Bringing retirement budgets into the digital age
2. Australian Bureau of Statistics (2020): Retirement and Retirement Intentions, Australia