- Baby Boomers anticipate that they will only have $455,561 at retirement, well short of what they think they would need to live for 20 years in retirement ($886,152).
- 24% of Baby Boomers expect to retire with a mortgage. Over 30% of these expect to use their superannuation to pay off their loan. The rest largely expect to either downsize or delay their retirement.
- Baby Boomers are the most concerned about having adequate superannuation for their retirement and close to half of them (47%) expect to run out of money during retirement and say they will need the pension.
That’s right nearly half of Baby Boomers expect to live on the pension.
With the pension for a couple being less than $34,000 per year this means these Baby Boomers will be living on:
- 57 per cent of the $58,284 per year that the Association of Superannuation Funds of Australia (ASFA) says a couple need for a comfortable retirement (in the ASFA Retirement Standard March 2015). And remember, this is for a comfortable life, no luxuries, no big gifts to the kids, no fancy overseas holidays.
- 94 per cent of the $35,594 per year that the Melbourne Institute of Applied Economic and Social Research (MIASER) consider the poverty line for a retired couple (in their December 2014 report).
- 90 per cent of the $37,466 per year that the Australian Council of Social Service (ACOSS) considers as poverty line for a couple (based on 60 per cent of median wage as poverty line in their 2014 Poverty in Australia Report).
So do you want to work hard all your life to retire and survive (I would hardy call this living) around the poverty line?
Don’t you feel that you deserve to live on something better than the poverty line?
My forthcoming book “Avoid the Poverty Trap” was written to help you avoid living in poverty once you stop working. Simply log onto click the link below to get a free extract of my book and I will give you more handy ways to avoid the poverty trap and how to get the book when it is printed.
Get your free extract of my new book Avoid the Poverty Trap
Find out why you are on the treadmill to work hard and retire poor. Are you heading straight for the Poverty Trap?
Then see some of the most important things you can do to Avoid the Poverty Trap.
Do you and your family a favour and start taking steps so you can avoid the poverty trap.
Wayne Wanders
The Wealth Navigator
wayne@avoidthepovertytrap.com.au
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