Don't put all your eggs in super basket

PEOPLE now aged between 30 and 50 could end up worse off than their parents and grandparents if they rely solely on superannuation.

Nest egg /File

Don't put all your eggs in super basket

DON'T rely entirely on your superannuation. That's the stark warning from Australian Unity Investment's retail general manager Adam Coughlan.

He is concerned that people now aged between 30 and 50 could well end up worse off than their parents and grandparents when they retire.

"My concern is that we are coming to a point where, for many, mortgage debt in retirement could be greater than superannuation savings,'' Mr Coughlan explained.

"People that increase their mortgages to fund lifestyle expenses and carry debt on their mortgage into retirement, are likely to be worse off than their grandparents were in retirement, and may end up relying on the government pension, despite having superannuation savings.''

Mr Coughlan said younger Australians could be lulled into a false sense of security through the example of their parents.

"Typically, the people retiring now, who own their own home, have seen their house possibly double in value in the past eight years. They are retiring with property worth hundreds of thousands of dollars, no mortgage to speak of, and a useful accrual of superannuation savings.''

Mr Coughlan said the combination of slower property growth, longer and more active retirements and a carefree attitude to debt could force many people to work longer than they anticipated.

They may do even worse than their frugal grandparents, who made up for a lack if superannuation by retiring without debt, significant savings in the bank and much more modest retirement lifestyles.