Baby boomers to retire with few savings

Members of the baby boomer generation will have few savings to call on when they retire, a report has revealed.

The study by the Melbourne Institute found that baby boomer women will only have two years’ worth of savings to live on when they reach retirement age, the AAP reported.

It was also discovered that men in their late 50s will only have five years of savings to live on.

Such a shortfall may encourage more Aussies to compare term deposits in search of better returns. The Melbourne Institute claimed the findings support the federal government’s plan to increase superannuation savings from nine to 12 per cent through a resource tax.

Professor Roger Wilkins suggested that Australians could delay their retirement to improve their financial position later in life.

"Later retirement both increases savings at retirement and reduces the number of years spent in retirement," he said.

According to the Australian Taxation Office, over 8,000 Australian taxpayers have been caught illegally plundering their superannuation accounts this financial year.

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