Published: 18 Mar 2021
A new report has found the government commissioned Retirement Income Review used unrealistic modelling assumptions pumping up the annual retirement income of a median earner by more than 40% – opening the door for proposals to cut or undermine the legislated boost to the Super Guarantee.
The Retirement Income Review claimed a median earner would retire with about $40,000 annual income a year if the super rate was kept at 9.5%, but robust assumptions reveals their average annual retirement income would be just $24,000 as a member of couple – well below adequacy benchmarks.
Industry Super Australia detailed analysis of the modelling underpinning the review shows a series of improper assumptions has pushed most retirees beyond the adequate savings benchmarks, allowing the panel to falsely claim that the current rate of 9.5% is enough.
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