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Retirement Dream FadesRetirement dream fades as workers just watch Australians are becoming more realistic in their retirement aspirations but are still unprepared to make important decisions on how their savings are invested.
Retirement Dream Fades ReportAccording to research presented by ANOP Research at an Association of Superannuation Funds of Australia conference in Adelaide, the median age at which Australians expect to retire has risen from 58 in 2001 to 59. Only 12 per cent of people now expect to retire before 55.ANOP's managing director, Rod Cameron, said more than 70 per cent of people now realised that compulsory super would not be enough, Retirement Dream Fades, and were adjusting their thinking accordingly. More than a third now expect to receive the age pension and 55 per cent expect to do paid work in retirement. Retirement Dream Fades as old will still have to work!While Australians are loath to give up hopes for a comfortable retirement - most still believe they will need an income of at least $30,000 a year - Mr Cameron said fewer than half were now confident of achieving that result, well down from 2001.This reality check comes as the super industry prepares for the introduction of super choice from July 1. This will allow most employees to decide where their retirement savings are invested. Among the 46 per cent of people who ANOP found were aware of choice, more than a quarter said they were likely to change their fund. In reality, Mr Cameron said, only 10 per cent were likely to switch, although these were more likely to be members of retail funds who have high average amounts invested. Mr Cameron said most consumers were satisfied with their existing arrangements. Satisfaction levels were higher for those in not-for-profit funds. The association's chief executive, Philippa Smith, said the survey showed people needed to be better educated to ensure they did not make poor choices in super. Most said their own fund was the same or better than others, suggesting many were not aware of better or cheaper options. Only 3 per cent, for example, said their fund was more expensive than alternatives. Peter Weekes writes: Employers could be forced to pay female staff the compulsory 9 per cent super contribution while they are on maternity leave, if a suggestion by the sex discrimination commissioner with the Human Rights and Equal Opportunities Commission, Pru Goward, is adopted. She floated the idea yesterday as a new report revealed the yawning gap between the superannuation savings of men and women. In 2002 women aged 55 to 64 had only $94,700 in retirement savings - $88,900, or 48 per cent, less than men of the same age, a new report shows.
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