Australians fear not having enough superannuation wealth to retire on

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Exclusive: Cash-strapped Australians fear they will not have enough money to live on when they reach retirement, with women far less confident than men when it comes to building their future nest eggs.

A new study by superannuation fund AustralianSuper, which surveyed 5000 people,

highlights the impact of cost-of-living challenges on retirement planning, with less than half of Australians (46 per cent) feeling confident that they will be financially secure in retirement.

In a worrying gender gap, men were more confident about their retirement funds, with 53 per cent believing they will be able to live well when they stop working, compared to just 39 per cent of women.

Less than half of Australians feel confident that they will be financially secure in retirement.

The research found that retirement confidence can be greatly boosted through simple daily habits such as planning and goal-setting, saving money and paying off bills.

Of those surveyed, 67 per cent of people with clearly defined savings goals felt more confident about living well in retirement, compared to the 26 per cent of those without these goals.

Australians who were more engaged with their super, such as making additional contributions (58 per cent), reviewing their annual statement (56 per cent) and checking their balance (50 per cent) were more confident than those who did none of those things (36 per cent).  

Shawn Blackmore, chief officer retirement at AustralianSuper, said it was important for people to “start a conversation” early on with loved ones about retirement plans in order to quell potential anxieties.

Shawn Blackmore, chief retirement officer at AustralianSuper, says there are simple steps Aussies can take to get on top of their finances. Picture: Supplied.

“One of the biggest habits that improves confidence is just starting the conversation about superannuation in general,” he said. 

“People can also reach out and seek help, guidance and advice from their super fund — that’s what we’re here for.”

It comes amid a separate study which found that three quarters of Australians believe super is important to their future financial wellbeing, yet public understanding of how it works to grow savings remains low.

The Super Members Council has launched a new public awareness initiative, ‘How Super Works’ to help demystify super and cut through the perceived complexities. 

Super Members Council CEO Misha Schubert said the initiative, which features explainers showing everyday Australians talking about super, aimed to help put the public in the best position to maximise their superannuation.

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“The more you know about super, and the more engaged you are with your super, the better you can make super work for you,” she said. 

Melbourne business owner Lauren Brown and her partner David Smith are staying engaged by regularly checking their superannuation balances, making additional payments and setting long-term goals.

Melbourne couple Laura Brown and partner David Smith, with daughter Sadie, are planning for their future in terms of superannuation. Picture: Supplied

The mother-of-one got an early introduction to budgeting and the power of super from her father, something she says has benefited her in adulthood.

Ms Brown, who owns and runs a business that provides a payroll system for people who employ nannies, said she frequently encountered women through work who had no superannuation, describing it as “heartbreaking”.

The 37-year-old, who rents a home in Malvern East but is planning to buy a property, said the federal government needed to focus on Australia’s housing affordability crisis and cost of living issues ahead of the next election. 

“The whole approach of, lifting interest rates leads so far into the Australian economy that it doesn’t feel like the right solution,” she said.

“It just feels like an inefficient way to fix the problem because I’ve been seeing a lot of community groups with anonymous posts that pop up every day asking where to get, food hampers.

“It’s really becoming a point where people are not going to be able to cope. And so I don’t understand how that works for our country.”

She also said early education was vital for young Australians in order to build confidence and an understanding of superannuation.  

“Maybe that’s through learning at school, maybe it’s later,” she said.  “Maybe there’s more apps that super companies could use to make the younger generation more savvy and put it more in the forefront of those people entering the workforce about how important it is.”

Originally published as Australians fear not having enough superannuation wealth to retire on