More than one in two Australian’s believe that they will need to rely on the Government for financial assistance during their retirement, according to the findings in an independent survey, released today by the Institute of Chartered Accountants, in Australia. 
 
Those people who are most confident about having financial independence during their retirement are those aged between 18 and 24 with 52 per cent believing they will be self-funded. Conversely only 33 per cent of those aged 50 years and over believe they will be self-funded. 
 
The survey also confirms that 76 per cent of Australians think that the superannuation opt-out scheme is a good idea. The scheme would see employees enter into a voluntary contribution arrangement, initially set at three per cent, which would supplement compulsory contributions, currently set at nine per cent. 
 
According to the CEO for the Institute of Chartered Accountants in Australia, Graham Meyer, the survey raises a number of issues concerning the attitude held by many Australians towards their superannuation.  
 
“While more than 52 per cent of Australians believe that they will require additional assistance from the government during their retirement, only 27 per cent are actually contributing additional funds to their superannuation, above the compulsory nine per cent,” Mr Meyer said. 
 
“As research shows, superannuation is considered the main nest egg for retirement with 79 per cent of Australians stating that their superannuation will be their main investment for retirement. Yet because many employees do not consider its benefits, once they have signed the product disclosure statement, many appear to put it on the back burner and not consider making additional contributions in order to save for their retirement,” Mr Meyer said. 
 
“A superannuation opt-out scheme would see employees volunteer additional contributions unless they actively make the decision to opt-out, this would effectively help people prepare more adequately for their retirement,” he said. 
 
“Above and beyond this scheme, further education is still required to help people understand the benefits of using their superannuation to save for their retirement. Having basic financial literacy skills will enable many Australians to make financial decisions about their future, also going to see a financial advisor can assist in developing an overall strategy to ensure you have enough money to retire,” he said. 
 
The survey also revealed the various investments many Australians intend to use to fund their retirement including: 
 

• Compulsory superannuation contributions paid by their employer 79%
 

• Making additional contributions to their superannuation 67%
 

• Other investment such as shares or property 69%
 

• Using the equity from existing assets such as the family home 57%
 
 

• Total = 272% based on some respondents giving more than one answer