The super system is a “major success”, according to retirees
The super system has been a “major success” with a majority of retirees saying the super mandatory has given them a comfortable retirement, according to a new poll.
The survey, conducted by National Seniors Australia and Challenger in the run up to the 30th anniversary of the mandatory super, found that 90% of retirees used the super as their main source of accumulating retirement capital.
John McCallum, Managing Director and Director of Research at National Seniors, said: “In short, the super mandatory delivers what it was designed to do – provide retirees with an income that maintains their working standard of living.”
The report revealed:
- 75% of retirees surveyed are satisfied with their financial security
- 85% of people had accumulated super for their retirement. This proportion was lower among women (82%) than among men (88%)
- About half of respondents want to keep part of their retirement capital, but spend part of it to finance their retirement
- Intention to keep most or all of the capital was significantly more likely among men or those who wanted to help family or friends access elderly care
- The most common reason for maintaining retirement capital was health and medical needs
- While 81% owned their own home and 11% owned a home with a mortgage, only 2% used the equity in their home in retirement
- Two-thirds said it was important to leave their home as a bequest
Aaron Minney, head of retirement income research at Challenger, said the results show the super was a “major success”, but pointed to retirees’ reluctance to increase their super withdrawal to further improve their lifestyle.
The “Retirement Income Convention” came into effect on July 1 and requires all major super funds to have a strategy to manage some of the unique financial risks that retirees face, with a view to giving them a more sustainable income in the future. life.
“The National Seniors Survey shows that retirement income reforms could not have come at a better time,” Minney said. “Many retirees are reducing their lifestyle rather than spending their savings. Hoarding the nest egg means they miss out on some of what they could enjoy.