Nearly half of Aussie seniors falling short of a comfortable retirement fund

Aussies in their 50s and 60s are struggling to build up an adequate savings nest egg ahead of retirement, according to recent research from MLC, part of NAB’s wealth management division.

It’s generally recommended that Aussie retirees have over $545,000 saved up for a comfortable retirement, but a great many Baby Boomers are falling short. A concerning 43% reported having a balance of less than $100,000, while 33% rang in with a nest egg under $50,000.

The MLC research suggests part of the problem may be that Aussies are leaving it too late to think about how they’ll fund their retirement. Of the survey respondents with a savings balance of under $100,000, 42% admitted they had only become concerned with their retirement savings balance in their 50’s.

Worse than that, over 30% owned up to never checking their super balance. But ignoring super could come at a big cost for Aussies, as recent analysis has shown that a gap between the return from Industry Superfunds and retail super could result in a $200,000 difference for retirees’ savings balance. That’s 200,000 reasons to double check the performance of your super fund today.

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However, according to Lara Bourguignon, General Manager of Customer Experience, Superannuation at MLC, nearly three out of four seniors with a low super balance think it’s already too late to boost their retirement savings.

The good news, Bourguignon went on to say, is that there a number of ways for Aussies to not only bulk up their retirement fund in the last years of work, but to also structure their current portfolio to their best advantage.

“While these results are concerning, we want to remind people in this age group that it’s not too late for them to take action and better understand their holistic wealth position as they prepare for retirement,” she said.

“For example, we know some of the people in this age group have other assets such as property in their name beyond super, which is an important factor for them to consider when planning for retirement.”

For those who don’t have assets, Bourguignon suggested getting proactive and engaging with your super fund as a way to make your retirement planning more effective.

You can also safeguard your nest egg by sticking a portion of your savings in a high interest savings account. At the moment, our comparison table shows you can score as high as 3.05% interest by choosing the right account - so what are you waiting for? Head over to our savings account search tool now.