Australians' super funds would run out in 10 years on average, survey finds

Australians face a 13-year shortfall in their retirement funds, and almost half the population admit they are not adequately prepared.

A study by HSBC, The Future of Retirement, shows Australians’ savings rates are among the worst in the world.

The global survey of 16,000 people showed Australians expected their retirement to last an average of 23 years, but their savings and investments were on track to run dry within 10 years – the largest gap in Asia and the fourth largest globally.

The research also revealed more than half of the nation has never saved specifically for retirement other than through compulsory superannuation.

“Australians are in denial about retirement planning,” Graham Heunis, HSBC’s head of retail banking and wealth management, said. “Being concerned is not enough. The next generation need to take action and start saving now.”

Globally, an average of 39% of people have not saved or are planning to save for retirement, compared with 53% in Australia.

Wage growth in Australia was slowing to 2.6% a year, the lowest rate since 1998, and many Australians were struggling to afford retirement, Heunis said.

One in six people believe they will never be in a financial position to fully retire. The research found more than a third of retirees felt their preparation was insufficient and half felt they should have started saving at age 30.