Fed: Low incomes make retirement a prison for many survey finds

AAP General News (Australia)
12-08-2000
Fed: Low incomes make retirement a prison for many survey finds

Failure to put away a big enough nest egg has made retirement a prison for many people
instead of a long anticipated freedom.

A new study by the superannuation industry has revealed retirees are being forced to
give up theatre subscriptions, treats like expensive foods and even buying a shout in
a club.

Workers now relying solely on money put away by their employers for their retirement
will be saving nine per cent of their income under the superannuation guarantee from 2002.

But the Association of Superannuation Funds of Australia says even after 30 years,
this will deliver retirement income of just $19,000 per year.

And Recent research by ASFA has found most people think they'll need at least $20,000
per annum in retirement.

ASFA chief PHILIPPA SMITH says the study highlights the urgent need for retirement
income targets to be revised up, and the removal of repeated layers of taxation which
act as a barrier to savings.

AAP RTV ss/daw/et/jnr

KEYWORD: SUPERANNUATION (CANBERRA)

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