Household savings and retirement Where has all my super gone? KELLYresearch October 2012 A report on superannuation and retirement for CPA Australia

Abstract

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.