Gen Y leading retirement readiness: research

More than half of Generation Y respondents in a recent RaboDirect survey indicated they would be adequately funded for retirement, compared to 31% of Gen Xers and 30% of baby boomers.

The findings came out of RaboDirect's Super & Retirement Report, which noted an "expectations gap" between what respondents believed they would need to fund their lifestyles in retirement and how much they expected to have in their superannuation. For Gen Ys, the gap was the lowest at $220,295. Baby boomers had the highest gap at $500,516.

Gen Ys also had the lowest expected retirement age, at 60, compared to 65 for both Gen X and baby boomers.

Commenting on this, RaboDirect head Bede Cronin said: "This expectation to retire younger every year is at odds with the expectation of having less money at retirement, and tends to reflect that average Aussie workers are not proactively engaged with their super funds, nor do they have a concrete strategy for a comfortable retirement."

"The result highlights a critical need for Aussies to take stock of their super and savings to plan for the future," Cronin said.

In this respect, Cronin highlighted Gen Y's active engagement with their retirement plans, noting that 40% of Gen Y respondents made voluntary super contributions and 71% currently use or intend to make use of a financial planner.

"Generation Y are building great habits and setting themselves up for success in retirement," Cronin said.

"The fact that they're more likely to use a financial planner and currently contribute more to their super funds indicates that they're serious about educating themselves and creating a realistic strategy to be prepared for the future."

Read more: SuperBabyRaboDirectBede CroninAussiesRetirement Report
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