Ageing nation: Retirees can't count on pension
THE Association of Superannuation Funds of Australia September 2014 report demonstrated findings that, for a couple aged 70 to maintain a comfortable lifestyle, it was anticipated that they would require $58,326 a year in today's dollars to fund their retirement.
With CPI ever increasing, this figure was only set to rise which meant potential retirees should not be banking solely on the aged pension.
With the current couple's full aged-pension entitlement at $33,488 a year, we believe the aged pension is no longer sufficient to fund an adequate retirement.
With Australia experiencing an aging population, the demand on this pension will continue to rise and there is every possibility it may need to be reduced in the future to keep Australia's economy in line.
As such, it is our opinion the best approach an individual can be taking is having a more active focus in the management and administration of their superannuation in order to fully or partly fund their own retirement.
- Morgans financial advisor Boh Burima