Despite Australia’s world-renowned pension system, a shocking 40% of Australians fear they’ll never have enough money to retire, as revealed by a recent survey. The country’s superannuation industry, valued at $3.9 trillion Australian dollars ($2.6 trillion), has been lauded as a model for pensions globally, yet many citizens doubt their financial security in later years.
Australia ranks seventh in the Global Retirement Index, which evaluates 44 countries based on post-work finances, health, and overall well-being. Switzerland topped this year’s rankings, with concerns rising about the rising costs of state pensions in developed economies worldwide.
Despite mandatory employer contributions of 11.5% under Australia’s superannuation system, worries persist about retirement preparedness and financial literacy among Australians. The Natixis survey also found that globally, 19% of respondents couldn’t afford retirement even with $1 million in savings, citing factors like interest rates and inflation.
As retirement demographics shift, it’s crucial for individuals to educate themselves on maximizing their nest eggs and preparing for their future financial security.