Golden years bright for Australians

Australians face a more comfortable retirement compared to low-income earners in Wales who may face potential poverty when they retire as a result of not building up sufficient private pensions or other savings.

Most Australians are said to be able to enjoy their golden years on much less than they think as a result of the benefit of generous tax and pension systems.

For the traditional Australian couple on an average annual income of $65,000 and $200,000 in superannuation, the actual take-home income from a combination of age pension and super is said to be similar to what they were earning when working full-time.

Financial strategist, Theo Marinis, said even if a person’s retirement savings are minimal or even non-existent, “you can still live better than most retirees around the world”.

Welsh low-income earners are just some of the retirees around the globe who face a more bleak retirement. In Wales, the Office for National Statistics (ONS) found just 16% of men and 27% of women in full-time employment belonged to a pension scheme.

The Pensions Trends survey suggested, despite wishing to save for old age, many employees are too stretched to meet day-to-day living costs and cannot afford to put money aside.

According to the ONS, participation in private sector pension schemes is also falling, with 39% of men and 28% of women belonging to a scheme last year compared to 52% and 37% respectively in 1997.

The study’s figures also showed some 41% of “savers” have not actually saved from their incomes in the past 12 months.

Australian Age Pension facts:

• Age pension for a couple is $1,011.40 a fortnight, totalling $26,296 per year.
• Age pension for a single is $670.90 a fortnight, or $17,443 per year.
• There is also a supplement payment of up to $58.40 a fortnight for singles and $88 fortnightly for couples.

Bleak retirement in Wales:

Pensioner poverty is already affecting 115,000 older people in Wales and one in three people in full-time employment do not have a private pension plan, therefore low income in older people is going to continue to be an issue for years to come.

Will you be financially comfortable when you reach retirement? Let us know in the comment box below.