Younger Australians have nearly as much faith in winning the lottery as using super to fund their retirement, according to a BT survey.
BT's recent Australian Financial Health Index, based on a survey of over 4,000 Australians over 18 and weighted to represent the Australian population, showed that 16% of respondents between 18 and 34 hoped to "win money" to fund their retirement. The proportion wasn't much lower in older groups - 15% in 35-54, 13% in 55-64 and 14% in those aged 65 or over.
Contrast this with the fact that only 18% of those surveyed considered superannuation to be their highest savings priority - the most popular responses were holidays and travel (24%) and "unexpected occurrences" (21%) - and it suggests that the average Australian doesn't put much stock in superannuation ensuring a comfortable retirement.
Unsurprisingly, then, the Australian lotto industry is predicted to grow at a compound annual rate of 1.2% over five years through 2015-2016 to $6.1 billion, according to recent IBISWorld research.
BT general manager of superannuation Melinda Howes said that this reflects a dire need for Australia to focus more on its super savings. "Australians' 'she'll be right' attitude just doesn't work when it comes to retirement. It doesn't make sense to financially prioritise 'maybe' scenarios over facts and the facts are if you don't save for retirement and invest early, you will not have enough money to retire," she said.
Howes added, "Saving for retirement needs planning and time, two things that will have a significant impact on when and how we retire. Without these, you are truly relying on chance, and nobody really wants that for their financial future."
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