ING Direct’s new research shows Australians are turning to property, savings, and even inheritance money to fund their retirement, as many doubt their superannuation will be sufficient.
Surveyed Australians expect their super will only contribute about one third or 35.8% of their retirement nest egg. This is prompting them to look for other options they are comfortable with like savings, property and inheritance money to complete their retirement income.
The report said that Gen Y are specifically expecting their retirement to come from savings (20%), property investments (13.2%), and inheritance (7.1%).
These findings are alarming for John Arnott, ING Direct’s executive director of customers.
“Working Australians are contributing almost one tenth of their salary into super every year. That’s a significant investment over a working life and yet people still have limited belief in their super to support their retirement,” he said.
“It all comes down to a fear of the unfamiliar. We don’t see or hear about our super every day, so we put our faith in what we know; things like property and savings.”
He added that this is a wake-up call to Australians to familiarise themselves with their Super.
“Start by simply checking your statement, logging into your super website or app, to understand your balance, fees and performance so you can take control and really make the most of your Super,” he said.
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