More Australians living off superannuation than the pension in retirement
The Changing Face of Retirement
For decades, the Age Pension was the primary source of income for most Australians in their golden years. But we are currently witnessing a historic shift. For the first time, superannuation is becoming the dominant force in funding Australian retirements.
Recent reports from the ABS show that more retirees than ever are relying primarily on their superannuation rather than Government benefits. In just the last 10 years, the proportion of people living off their super has jumped from 20% to nearly 30%.
Why is This Happening?
The main reason is the "Baby Boomer" generation. Born between 1945 and 1964, this entire cohort has now reached preservation age. Unlike previous generations, they have benefited from several decades of compulsory superannuation.
Furthermore, the increase in the Super Guarantee to 12% means that younger generations will be even more reliant on their own savings.
What Does This Mean for You?
This shift represents a move toward greater financial independence. Relying on super instead of the pension means:
More Control: You choose how your money is invested and how much you withdraw.
Better Lifestyle: Superannuation generally supports a "comfortable" lifestyle, whereas the Age Pension is designed as a safety net for "modest" living.
Less Political Risk: You are less vulnerable to future changes in Government policy or pension eligibility rules.
However, with great control comes great responsibility. Managing your own income stream requires careful planning around tax, inflation, and market volatility. As your Adelaide advisors, our role is to help you transition from the "accumulation" phase to the "pension" phase with confidence.
We invite you to give us a call on 08 7477 8252, to book an appointment to review your super.
General Advice Warning:The information on this website is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product.