The Australian Financial Review --- Page: 9 : 26 July 2007 Original article by Steven Scott
ABIX Summary
The large Australian financial services group, AMP, has studied superannuation in detail. It has published the inaugural AMP Superannuation Adequacy Index, which was compiled by Access Economics. The report looked at 320,000 AMP corporate super clients and at what income is needed in retirement to fund a comfortable lifestyle. An employee will need to retire with over $A500,000, in addition to the family home, in order to fund an annual income of around $A40,000 a year. The report suggests that many employees, relying on the 9% super contribution by employers, will never garner enough money for a comfortable retirement. The suggestion is that more money must be added.
