Business

Comfortable retirement a luxury for many

NEW research shows almost half the population retiring in the years through to 2055 will not have enough income to achieve a comfortable retirement, unless current policies are overhauled.

Modelling by actuaries Rice Warner for Industry Super Australia's submission to the Tax Review paints a stark picture.

On average, 63% of single women will fall below the comfortable retirement standard, as will 50% of single men and 45% of couples.

This takes into account their super, the pension and other savings combined, in a fully mature super system.

"One of the main causes is poorly targeted tax breaks on superannuation, which are now wildly out of balance between high income earners and those on medium to lower wages," said David Whiteley, CEO of Industry Super Australia.

"Our analysis of retirement incomes shows current tax breaks flowing to the top 1% of Australian income earners will more than double their retirement income. Perversely, the lowest paid Australians, who receive no tax break, suffer a 14% reduction in their superannuation income.

"As a result, the income of the top 1% of couples retiring in 2055 will be almost 10 times higher than couples at the lowest end of the income scale. This gap is clearly inequitable and unsustainable," Mr Whiteley said.

Meanwhile, tax breaks for middle income earners will increase their retirement income by just a third.

With tax concessions flowing disproportionately to high earning males, the imbalance is already impacting deeply on women who make up the vast number of median to low paid workers.

"We know that 63% of single women will not have enough to retire comfortably under existing policies. However this rises to an alarming 80% when the proposed tightening of the pension asset test is added to the equation," Mr Whiteley said.

Topics:  retirement, superannuation




DEX Sports quotes of the week

Australia's Zoe Buckman competes in the Women's 1500m heats, at Hampden Park during the XX Commonwealth Games, in Glasgow, Scotland, Monday, July 28, 2014. (AAP Image/Dan Himbrechts) NO ARCHIVING, EDITORIAL USE ONLY

"WHEN I first saw her I said this girl going to the Olympics"

From accounting to empowering people with the new age

Katie Gasson at the Psychic Channeling and Healing Festival at the South Grafton Ex-Servicemen's Club.

Katie Gasson talks about how she found the new age.

Latest deals and offers

WATCH: News reader tries her hand at hardcore shooter, Doom

Veteran journo and noob gamer takes a shot at Doom

What's on the small screen this week

MasterChef Australia's final four contestants, from left, Harry Foster, Elena Duggan, Elise Franciskovic and Matt Sinclair.

MASTERCHEF makes way for The Bachelor on Ten's reality TV slate.

Guy Sebastian a hit at Splendour in the Grass

Guy Sebastian performs at Splendour in the Grass with Paces.

REALITY TV judge a hit with festival crowd.

Superheroes of the big screen enjoy sounds of Splendour

CHRIS Hemsworth and his Avengers mates drop by Byron festival.

Indigenous artist shows tourists secrets of Aboriginal painting

Ever thought "I could do that" about Aboriginal art?

Dynamic pics from Splendour Day 1

The Strokes perform at Splendour in the Grass 2016. Photo Marc Stapelberg / The Northern Star

Check out the latest pictures from Splendour in the Grass.

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

Massive residential 9-storey high-rise hit by delays

An artist’s impression of the eight-storey-high apartment complex that Bernoth Holdings wants to build in South Toowoomba, next to the City Golf Club.

Developer struggles to get approved high-rise development started