Your retirement:Why it might not be comfortable

Australians are not saving enough to provide even a comfortable living for themselves in retirement.

This finding has been confirmed, yet again, in new research just published by the National Centre for Social and Economic Modelling,  NATSEM.

Its research is supported by the AMP.

“Australians have very high retirement expectations,”  Craig Meller, the managing director of AMP Financial Services said.

“But we are not saving enough to even afford a comfortable retirement, let alone one which meets our expectations.”

NATSEM’s research showed that a move from the present level of 9 per cent – in compulsory superannuation contribution -  to 12 per cent would help fill that gap.

By increasing the superannuation guarantee to 12 per cent, the average superannuation balance could increase by one quarter, Mr Meller said.

Thousands of Australians were shocked late last year, when the stock market crash took a huge bite out of their retirement savings.

Their fortunes have been partly restored, though, by steady gains in share prices since March this year.

However there was a small set back in October, with Australia’s superannuation funds suffering an average loss of 1.5 per cent, during the month.

However Jeff Bresnahan, of Super-ratings, which published this result, said it is still too early to tell whether this loss, the first in eight months, amounts to more than a hiccup.