Australians’ superannuation savings are falling short of retirement expectations, new research has highlighted.
And nearly one in two Australians do not know how much they pay in superannuation fees, according to research from superannuation and investments company Vanguard.
WATCH THE VIDEO ABOVE: Aussie super savings falling short.
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“We are coming up against a stubborn statistic in our retirement research again this year — almost one in two Australians still don’t know what they pay in super fees,” Vanguard Investments Australia managing director Daniel Shrimski said.
Meanwhile, superannuation consultancy company Australian Retirement Trust’s latest research shows the average superannuation balance for someone age 35 to 44 is $92,700 — yet this should be closer to $156,000 to be on track for a “comfortable retirement”.
The average worker aged 55 to 64 has $285,900 in super but a 60-year-old needs close to $453,000 in retirement savings, ART said.
“In the past 12 months, only one in five of us has checked our super balance,” Australian Retirement Trust executive general manager Anne Fuchs said, adding 70 per cent of Australians feel they don’t have enough money to retire on.
“We talk to members all the time who have reached the end of their working life full of regret, wishing they had done something earlier.
“Australia has a monster problem whereby not enough of us are engaging with our super.
“The earlier you start paying attention and understanding how your money is invested … then you’ll really be able to finish work and put your feet up.”
But experts say many younger Australians are now taking their superannuation needs more seriously.
“(Younger Australians) are starting to become a bit more (aware of their) superannuation,” financial consultancy Link Wealth director and financial adviser Joshua Lee told 7NEWS.
“Australians do put superannuation in the ‘too hard basket’ because it’s not something you can physically touch here and now … (but) the sooner you can start, the better.”
Lee said one of the most important tips for Australians is to take notice and understand their superannuation payments — and what they pay in fees.
“Take notice of what your account is doing,” he said.
“Look at your statement when it comes in every year so you can understand what fees are being deducted from your account because that will have an impact on how much money you have come retirement.”
– With Laura Dymock