A new report from Roy Morgan research warns that the Government will need to finance a potential 27 per cent increase in pensions for men and women planning to leave work by this time next year. This supports our post in August which reported that the burden of Age Pension is set to rise based on an Actuaries institute Report – and data showing a rise in higher draw-down of amounts on super resulting in more retirees exhausting their balances earlier.
From Money Management –
Government support will be needed to finance a 27 per cent increase in potential retirees next year, with 228,000 men and 187,000 citing their plans to call it quits on working life by September 2017, according to research by Roy Morgan.
The findings in Roy Morgan’s ‘State of the Nation — Spotlight on Finance Risk’ show that the 415,000 Australians intending to retire over the coming year are likely to have inadequate savings and superannuation to be self-funded, meaning the need for government support for the non-working is set to rise substantially.
According to Roy Morgan industry communications director, Norman Morris, changes to superannuation legislation have never been more desperate.
“The low levels of retirement savings will put more pressure on government funding for some time yet unless there are changes to eligibility rules, taxation or superannuation legislation,” he said.
“The average level of savings and superannuation for those intending to retire in the next 12 months is well below what is required to be able to lead what ASFA describes as a ‘comfortable lifestyle.'” Read more at Money Management
How are your retirement plans going?
For most – it is easier to consider it’s all too hard, and put it aside for later. But really it is not as hard as it seems – by looking at where you are at, what retirement style you want, what that will cost to run, what you need invested to get that income and what to do now – See the 5 S Easy Steps to Plan your Retirement
Don’t keep procrastinating!
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