Already property ownership from 2006 census figures of 69.8 per cent owner occupied dwellings has dropped to 67 per cent in 2016.
Our survey found it’s the younger demographic (aged 18 to 34), those most impacted by the recent years’ surge in property prices, who most significantly underestimate their retirement savings goal.
Alarmingly, 44 per cent believe they will need less than $A300,000 to achieve their independence in retirement.
Thirty three per cent believe they will need less than $A100,000.
Based on ASFA’s above criteria, $100,000 will last them less than two and a half years.
Even assuming a partial age pension continues while our population ages increasingly towards retirement age, ASFA estimates the lump sum needed to support a comfortable lifestyle for a single person is $A545,000, or $640,000 for a couple.
With homeownership remaining a great Australian dream for an increasing number of Australians and a growing number of the ‘lucky’ homeowners carrying mortgage debt into retirement, more needs to be done to ensure Australians are equipped with the financial literacy and the sense of urgency, to save for their independent future now.