Many Australians still remain uncertain as to how much money they will need to retire, with a large cohort overestimating they will need at least $1 million to do so, according to the Association of Superannuation Funds of Australia (ASFA).
A survey conducted by ASFA of 1500 adults representing a broad cross-section of ages, gender and education found 30 per cent of respondents felt they needed between $1 million and $2 million, while a further 30 per cent felt they needed between $500,000 and $1 million in superannuation to retire comfortably.
ASFA chief executive Mary Delahunty noted the figures were at odds with the latest Retirement Standard released yesterday, which found a couple would need $690,000 and a single person would need $595,000 at age 67 to live comfortably in retirement.
Delahunty added only half the people surveyed had sought professional advice to plan their retirement and the variation in responses highlighted the need for quality financial advice to be more accessible.
“It’s clear from our research many Australians are overestimating the amount of money they need to comfortably retire, while some are underestimating it,” she said.
“This is where access to affordable and accessible financial advice could make a world of difference and why ASFA supports the government’s recent announcement of Tranche 2 of the Delivering Better Financial Outcomes reforms.
“These will help increase the supply of financial advice, thereby lowering the cost of high-quality advice.”