As Australia’s super system matures, workers will retire with larger balances.
No one has a crystal ball, but the most recent Intergenerational Report (IGR) noted that, whilst the balance between full and part Age Pension recipients may alter, the proportion of older Australians receiving such retirement support is unlikely to change over the next 40 years.
As the report stated, “Future growth in retirement balances has potential implications for the size of Australian government outlays on the Age Pension.
In 2013-14, around 70 per cent of people of Age Pension age were receiving the Age Pension. Of these, 60 per cent were in receipt of the full-rate pension. As Australia’s super system matures and compulsory contributions increase, many Australian workers will retire with much larger superannuation balances. The proportion of retirees receiving any pension is not projected to decline.”