Consumer organisation Super Consumers Australia claims the superannuatiuon industry is misleading Australians about their retirement needs.
It has announced it will be developing new savings targets which "accurately reflect what the community expect from their retirement".
"The industry directs consumers to retirement targets that are only appropriate to the top 20 percent of income earners and they ignore the needs of retired renters," said Xavier O'Halloran, Director of Super Consumers Australia.
"Super Consumer's new people-centred retirement targets will be released in 2021 and will help people understand what savings target is right for their situation."
Mr O'Halloran said in the meantime there are three tips you can follow to secure a better retirement
"Whether you're 20 years old or 60 years old, there's things you can do right now to secure a better retirement in the future."
1. Get to know your super
"Check your super fund, find out your balance and see if you can do better. If you have more than one fund, you could be paying unnecessary fees. MyGov makes it very easy to consolidate your super into one fund, which can save you a lot in the long run," said Mr O'Halloran
2. Think about the retirement you want
"The super industry is misleading Australians about their retirement needs. Consumers need reliable independent guidance to plan for retirement," he said.
"Think about the kind of retirement you want. Do you want to stay in your community, surrounded by family and friends? Or travel the world? Whatever your dream, the decisions you make now will dictate what's possible."
3. Set a calendar reminder - Your superannuation is easy to forget about
"We recommend putting a reminder in your calendar every year to check in. Superannuation relies on a number of complex factors to grow your retirement fund. The fund your employer chose five years ago, might not be the best fund for you now. As we head into the new year, why not make January your month each year to check in on your super and make sure it's still meeting your needs?"
Super Consumers Australia is an independent, non-profit consumer organisation established in 2019. It's savings target project is funded by the Ecstra Foundation, a grant making charitable organisation committed to building the financial wellbeing of all Australians within a fair financial system.
The project is due to be completed in October 2021.
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