Page 32 - How Australia Retires

31 Vanguard | How Australia Retires

50% By contrast, while only 1 in contributions to maximise their
3 current retirees consider
future returns.
of working-age superannuation as a core part Most notably, only 5% of those
Australians view of their financial plan, especially Lacking Direction make regular
those younger than 65 years old,
superannuation as they are more likely to rely on it. additional contributions to
a key part of their Retirees are significantly more superannuation. Those who
retirement plan, but likely to expect the Age Pension contribute extra into their
superannuation funds are
to form a part of their retirement
expect it to account for plan, and only 1 in 10 report significantly more likely to
a smaller proportion of investment property as an asset. feel prepared and confident in
their total assets than funding their retirement lifestyle,
current retirees. Despite the importance of evidenced by 36% of those who
superannuation in working-age are in the Highly Confident
Australians’ plans, fewer than half segment making regular additional
make additional superannuation superannuation contributions.
54% of working-age Australians
estimate that their superannuation
balance constitutes 50% or less Table 4: Percentage that make regular additional superannuation contributions,
of their total investment balance. by retirement journey and segment
That is, at least 50% of that total
balance is comprised of non- Journey Segment % that makes regular
contributions to
superannuation investments such superannuation
as savings account, property they Low Confidence Journey Lacking Direction 5%
live in or investment properties,
and shares and exchange traded Aspiring Professionals 28%
funds (ETFs). Most notably, 1 in 4 Passives 23%
working-age Australians highlight Late in the Game 15%
investment property as a key part High Confidence Journey Highly Confident 36%
of their financial plan.