Boomers risk nest egg bust

ONE in five Baby Boomers have less than $30,000 in retirement savings and the average superannuation balance is only enough for 2.5 years of “comfortable” living, according to a new survey.

Research by finder.com.au found that most Australians said they needed about $70,000 a year to live on when they retire but with the average super fund balance of $176,000 they had enough for less than three years.

Finder.com.au spokesman Bessie Hassan said 660 Baby Boomers leave the workforce every day in Australia.

“Thousands of Aussies face a huge deficit when it comes to the size of the nest egg they have to retire with. Considering the average life expectancy is rising in Australia, the situation is only going to get worse,” Ms Hassan said.

However, only one in three workers are making extra contributions to their super funds.

The average extra contribution was up to $100 a month, although almost 12 per cent were tipping in an extra $500 or more a month.

“Working out how much you will need to fund your retirement is not easy, particularly if it is decades away. But as a general rule, adding more than the default (contribution) is your best bet,’’ Ms Hassan said. “Research has shown that most people will need around 60 per cent of their pre-retirement income to maintain the lifestyle they have become accustomed to.”