Australia: Savings shortfall as workers near retirement

Nationally, 5.1 million workers are likely to fall short of savings for a comfortable retirement. The latest research from CBA reveals that only half of workers – about 7.7 million people – will have enough superannuation, personal wealth and age pension to retire comfortably.

CBA’s Retire Ready Index (in partnership with actuarial firm Rice Warner), assessed the retirement readiness of workers aged 25 to 64. The index accounts for combined super savings, personal assets and the age pension and is based on the average couple needing $59,619 a year and a single needing $43,372 a year upon retirement.

Only 8% nominated retirement as their main saving goal; adding to the shortfall in funds necessary for a comfortable retirement.

27% of singles are expected to be retirement ready compared with 75%for couples. Women are less prepared than men, with only 22% of single women ready compared with 31% of single men.

RFi Group data reveals that of those who have a savings account, only 8% nominated retirement as their main saving goal; adding to the shortfall in funds necessary for a comfortable retirement.

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