2012 marks 20 years of compulsory superannuation. When SG was introduced its aims were to reduce dependence on the age pension and provide a higher standard of living in retirement for the ageing
population. At that time, it was thought retirees could live on 40 per cent of the husband’s pre-retirement income.
Now, it is widely acknowledged that 60-65 per cent of the pre-retirement household income should be the retirement income target. In 2010 that was $67,500 per year.
In addition to changing expectations, there are a lot more retirees, people are living longer, economic prosperity has come and gone, and house prices and share markets have soared and declined. These changes have
had a profound impact. This report examines these changes.