Baby boomers lack savings for comfortable retirement
Documents prepared by the Federal Treasury show the federal government’s main economic advisers believe many of the nation's four million baby boomers will have to sell their homes or work longer to have enough savings for a comfortable retirement. The Treasury analysis the “superannuation guarantee” – paid by employers and equal to nine per cent of income – would make the “average person's financial independence in retirement more secure than at any other time in Australia's history”. However, that prospect would not apply for decades. Separate research by the Association of Superannuation Funds of Australia shows people on average earnings of $40,000 who work for 30 years, receiving nine per cent in employer contributions, would end up with an annual income of only $19,000 in retirement. The baby boomers, however, would expect to retire on less.