‘Baby Boomers’ now have a superannuation “gap” of $500,516 – that’s the difference between what they expect to retire with and what they actually need, according to the latest RaboDirect Financial Health Barometer survey.
The survey of 2,300 Australians between 18 and 65 found the overall super “gap” for Australians has gone from $268,502 in 2014 to $353,125 this year.
It’s a sharp contrast to our average net worth, which is only $434,000 according to the ABS.
Even more worryingly, nearly one in five Aussies (18 per cent) were relying on an inheritance to get them through their retirement.
Not the wisest bet when we are all living longer and better than ever before.
Help at hand
The researchers found that even if people are close to retirement, they are still reluctant to make contributions or get help from a financial planner.
Only 31 per cent of ‘Baby Boomers’ make voluntary contributions.
With a raft of superannuation changes including tighter caps on contributions kicking in from tomorrow – and aged care now costing as much as a house – it’s worth making sure you’re taking advantage of new concessions and any tax breaks.
Adding just $20 extra a week to your super over 45 years would result in over $175,000 more for your retirement.
I’m finally planning on getting advice after years of making the occasional voluntary contribution – but it’s never too late to start.
