Super stress for retireesCurrent superannuation structures may soon lead to hundreds of thousands of retirees renting, downsizing or moving in with their children because of dwindling retirement funds, says Club Plus Super.Recent data from industry super fund Club Plus Super suggests the average 65-year-old retiree’s super fund will likely be exhausted within just six years of retirement. The fund argued this trend may change the composition and dynamics of families, the property market and the wider economy.Club Plus Super claims the Australian superannuation system requires immediate and significant revisions. It says the country would be unprepared for the trend of retirees moving back in with their children, which would cause significant changes to the property market and the wider economy.The current system enables retirees to expend all of their super funds in one go before they’re forced to rely on the age pension. Club Plus Super claims this system, along with Australia’s rapidly ageing population, could lead to entire generations missing out on the retirement they’d planned for.Club Plus Super also surveyed 843 of its fund members to study their superannuation habits. More than half understood exactly how much money they’d need to sustain a retirement that met their lifestyle goals. However, only one-third of the respondents admitted to making additional contributions to their super.A recent report from the Association of Superannuation Funds of Australia (ASFA) also confirmed the widespread presence of low super funds.
Home Property Australia Super stress for retirees