AUSTRALIA - Workers should be made aware of how far their superannuation fund savings will go in retirement to motivate them, the Australian Securities & Investments Commission (ASIC) has said.
Jeremy Cooper, deputy chairman, ASIC, said: "Many people don't know how much they will retire with and what kind of lifestyle they will be able to afford. It might shock some people, but we want them to see a 'super snapshot' of their projected end-benefit in time for them to do something about it. We're calling these 'super snapshots' to start people talking about them."
ASIC said almost half (46%) of savers relied on the minimum contribution while a third (33%) of savers who did contribute extra were not on target for an 'adequate' retirement, making the issue of retirement savings all the more important.
Cooper added: "We are asking super funds, their members and industry experts to tell us how this can best be done and which types of forecasts would benefit members the most. This is an opportunity to have a direct say in further improving Australia's retirement income system."
The consultation, which is due to end on 31 October, will look at funding assumptions, the impact of fees and costs, future contributions and earnings.
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