Grattan Institute hits out at “fear factory” surrounding superannuation

The financial services industry has been accused of running a “fear factory” to scare Australians into putting more of their money into superannuation.

The Grattan Institute has released a new report, which found the warnings about financial stress in retirement were largely overkill.

It said the average worker can expect to have a retirement income that’s at least 91 per cent of their working income.

John Daley, chief executive of the Grattan Institute, said most of the modelling had a major flaw.

“It’s built on the assumption that people will increase their spending in retirement and that just bears no resemblance to reality,” he told Neil Mitchell.

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