Retirees lack sufficient super savings

A significant proportion of Australian retirees lack the superannuation savings needed to have a comfortable retirement, new research shows.

According to a report by the Industry Super Network (ISN), more than one third of retirees said they either lacked or only just had enough superannuation savings to make ends meet.

Consumers aiming to improve their savings situation could also choose to compare term deposits in search of better returns. ISN reported that around half of those drawing on their super are continuing to work, suggesting such funds are not adequate for them to live on.

The organisation used its findings as proof that the superannuation guarantee should be lifted from its current rate of nine per cent of wages to the more sustainable figure of 12 per cent, as the federal government has proposed.

Its research also found that a significant proportion of payouts are used for short-term consumption or paying off debt.

ISN chief executive officer David Whiteley argued that the focus of many retires on short-term consumption such as "around Australia" driving holidays was not unreasonable and not unlike what teenagers do when they have a gap year after finishing school.

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