Research by MLC indicates that 66% of Australians not yet retired feel unprepared for retirement, with only 15% believing they are well prepared.
MLC, which is owned by NAB, has used the release of a research paper to call on politicians to “redouble” their efforts to set objectives for the superannuation system.
“We applaud the major political parties for their commitment to legislate the objectives of super,” said Paul Carter, NAB’s Executive General Manager, Superannuation and Investment Platforms.
“However, those objectives must be clear, measurable and robust to ensure they target an adequate replacement income in retirement to mitigate generational inequity and gaps in living standards as well as costly and destabilising interventions into the future,” he said.
“Superannuation has been the subject of political whims for too long.”
“Over the past decade, too often the debate has focused on the year to year tax concessions in a system that has not fully matured. Too many have ignored dramatic and ongoing changes to workforce participation, earnings, increasing health costs that will be borne by individuals and other significant changes affecting salary and wage patterns and indeed ‘wealth’.”
“The end result has been constant tinkering, or significant unanticipated change, which has left Australians feeling uncertain about their retirement.”
According to MLC’s survey of over 2,000 people, women and young people are more likely to feel unprepared for retirement. 79% of people aged 25-29 feel unprepared. 74% of women feel unprepared for retirement, compared to 57% of men.
The research also found that people who used a financial professional were “significantly” more likely to feel either ‘very well’ or ‘fairly well’ prepared for retirement. 35% of those who used a financial adviser felt well prepared, compared to 9% of those who did not use any type of financial professional.
MLC says a retirement savings shortfall is “looming for too many Australians”, with the savings gap projected to be $2.052 trillion excluding the age pension. Including the age pension the gap is projected to be $768 billion.