Tuesday, 16 April 2024
    How super has evolved
    06
    Sep
    Superannuation

    How super has evolved

    Compulsory super reached a 30 year anniversary milestone this year, and a survey from National Seniors Australia, released yesterday, has backed up the importance of this retirement income system within the country.

    National Seniors collaborated with investment management firm Challenger Limited on this survey and Head of Retirement Income Research at Challenger, Aaron Minney, says that compulsory superannuation has been a "major success" in preparing Australians for retirement.

    Australia's retirement income system is considered to be one of the best in the world, however, people do find the system complex to navigate according to Chief Executive Officer (CEO) and Director of Research at National Seniors, Professor John McCallum.

    “Older Australians told us in the survey that the compulsory super system had enabled them to enjoy a comfortable retirement. It is truly a ‘guarantee’ for a better later life," says Professor McCallum.

    So how has super benefited older people, how has it evolved over the years and in what ways can it be improved?

    National Seniors found through its survey that 75 percent of retirees were satisfied with their financial security due to superannuation and that their financial security increased as they aged.

    Superannuation was also considered the top retirement income source for retirees, with 70 percent of survey participants saying it was their biggest source of income in retirement.

    Around 47 percent of men and 39 percent of women reported that the current super system allowed them to live comfortably in retirement.

    Additionally, 82 percent of women and 88 percent of men have savings ready for their retirement.

    National Seniors also found that home ownership was an important part of feeling secure in retirement, with around 85 percent of retiree participants indicating they own their home outright (no mortgage).

    “Comfort in retirement is higher among those who own their home compared to retirees who don’t. At older ages, the security of the home was more important than high savings levels in achieving comfort," says Mr Minney.


    FULL STORY

    Thirty years of compulsory super: How has it evolved and benefitted older Australians (Aged Care Guide)

    Challenger National Seniors Report