Aussies 'must account for retirement saving shortfall'

Australia's ageing baby boomers must act now to account for the huge shortfall in their retirement savings, it has been suggested.

Ian Harper, director of Access Economics, said that his organisation's own figures showed that most Australians have "nowhere near" enough superannuation to fund an adequate living standard in retirement.

"Government outlays on the age pension won't fall anywhere near as much as we thought they would with the introduction of compulsory superannuation," he said in a piece for The Australian.

"This is partly because the superannuation guarantee contribution has remained at nine per cent of salary and wage income rather than the 12 per cent it was supposed to have reached by now."

Mr Harper suggested that more people should be looking to use home equity release schemes that would allow them to contribute to their retirement savings without selling their properties outright.

Aussies aiming to grow their long-term incomes could also opt to compare term deposits in search of the best returns. According to Mr Harper, a Productivity Commission report has even goes as far as to recommend a government-backed scheme to encourage the adoption of home equity release schemes.

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