Aussies ‘savings gap’ blows out $26K

The latest research released today by the Investment & Financial Services Association (IFSA) showed Australians face a massive savings shortfall that would see the majority of Australians struggling to maintain their quality of life in retirement.

John Brogden, IFSA’s CEO, said the latest IFSA research undertaken, by Rice Warner Actuaries, represented a confronting reality check. “The retirement savings gap faced by Australians is the difference between what is actually being saved and what is needed to sustain a reasonable lifestyle after ceasing work. This latest forecast shows the gap has continued to grow.

“The retirement savings gap has blown out from $452 billion in 2004 to $695 billion in this report, an increase of $26,000 per person to $73,000 per Australian."

Source: IFSA