Save hard - if you're 30 you'll need $1.5m to retire at 67

AUSTRALIANS will have to work longer and harder and stash more away for their retirement, if they are to live comfortably into old age.

That was the verdict from a study by Deloitte Access Economics on the dynamics of Australia's superannuation system.

The study has examined both the future investment in superannuation across the nation, and how much people will need to put away.

Lead author Russell Mason said a 30-year-old worker earning $60,000 today would need more than $1.5 million to afford a "comfortable retirement when they turn 67.

But he said the same person was only likely to have $1.1 million put away by retirement 65, in 2048.

"This account balance is expected to last to age 94 under the modest retirement standard ($22,654 pa) and to only 77 under the comfortable retirement standard of $41,197 pa," he said.

"To afford a comfortable retirement standard covering life expectancy, a current 30-year-old male would need a retirement benefit in 2048 of $1.58 million and a female, $1.76 million.

"To achieve this, current 30-year-olds would need to make an additional contribution of 5.4% as a male and 7.5% as a woman on top of their current SG rate."

The study found that on current rates, assets in the super industry would grow from $1.6 trillion today to $4 trillion by 2023 and up to $7.6 trillion by 2033.

It also showed the current level of four working people to every Australian retiree was expected to drop to three to one in the next 20 years.

Topics:  editors picks money retail retirement wealth

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