Closing the real retirement gap
Our analysis explores the impact pivoting Australia’s superannuation system to a mass personalised, goals-based approach could have on the real retirement gap.
Making Super Personal
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More on the impact
How does mass personalisation of super impact the real retirement gap?
The real retirement gap is the gap between the income that each individual needs to fund the lifestyle they want in their retirement, and what they are on track to achieve. Below we show how 8,120 Australians are tracking^ toward their chosen retirement goal, and the impact of personalised contributions* and investments.
MORE ON THE KEY INSIGHTS
Four hurdles stand in the way of individuals optimising their voluntary contributions
Our survey of 3,000 working Australians reveals that just 11% feel they have overcome these hurdles, to be in a position to make optimal contributions.
Most Australians end up with compromised asset allocations
The research highlights the compromises embedded in today's one-size-fits-many defaults. Even when investors make a choice, many find it difficult and choose poorly.
MORE ON THE KEY INSIGHTS
Analysing the impact on 8,120 Australians.
The full report details the impact of optimising contributions and investments, making the case for why mass personalisation of super is the evolution the industry needs to help solve the real retirement gap.
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Today's defaults vs optimal
The real retirement gap
The First Lever:
Helping People engage and optimise contributions
The SECOND Lever:
Removing the investment compromises
HELPING CLOSE THE REAL RETIREMENT GAP
Individual choice vs optimal
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*Contributing up to 5% of their salary in additional contributions when tracking behind or reducing contributions when tracking ahead
^Projected incomes are calculated based on data and assumptions and are not a guarantee of actual retirement incomes. Projected incomes were determined based on data from the 8,120 members who used the Russell Investments goal setting tool (which excludes significant outliers with projected income more than 50% away from the desired income). Data includes current age, current balance, current income, current investment strategy, current contribution level (including member voluntary), desired age to retire from the workforce and desired level of annual income in retirement. Projected income is based on assumed returns applicable to the current investment option and contributions, or the GoalTracker default strategy and contributing up to 5% of their salary in additional contributions when tracking behind or reducing contributions when tracking ahead, member data and the assumption all savings are spent by the age of 94. The projected income was compared to the desired level of income.