How much do you need to retire?

Young Aussie workers are gloomy about retirement, predicting they’ll need as much as $1.74 million saved – more than double the peak superannuation body’s estimate.

According to new research by ING, Generations X, Y and Z think they’ll need between $1.5 million and $1.74 million in savings to retire.

Also read: These are your favourite credit cards, Australia

However, according to Industry Super Funds, the average 35 year-old male earning $80,000 a year with $40,000 in super will only need $721,299 for a comfortable retirement, including $105,000 in emergency, holiday and transport costs.

The Association of Superannuation Funds of Australia (ASFA) also predicts the average single Australian retiree needs about $600,000 to fund a comfortable retirement, or $42,953 a year in retirement.

Young Aussies are “clearly thinking cautiously,” ING head of retail banking, Melanie Evans said.

The ING polling, carried out by Rice Warner, showed Generation X, or those born between 1965 and 1980 are resigned to retiring at 72 with Generations Y and Z expecting to retire at 68 and 65 respectively.

“[They] are under no illusion that you can retire whenever you want without adequate savings,” Evans said.

Also read: Thousands of self-managed super funds are now investing in cryptocurrencies

“However, there seems to be a reluctance to make plans, and this could be because they’re just not sure where they can go for help.”

Despite their grim predictions, a quarter of concerned savers in these cohorts are choosing to hope for the best, rather than ask for help. However, another 35 per cent admit they just don’t know where to start, with most Aussies leaving retirement planning until they hit 45.

Among the youngest cohort, Generation Z, only 21 per cent have retirement planning on their to-do list. Generation Y are similar, with 64 per cent admitting it’s not on the radar and less than half of Generation X say they’re thinking about it.

Also read: How Westpac Banking Corp’s (ASX:WBC) “small” $35m fine can threaten its dividends

Across all generations, a happy retirement is one without worries, while the ability to go on regular holidays or out for dinner is also important.

To meet these goals, 45 per cent Aussies are keen to work casually – especially so for the youngest generation, Gen Z.

Evans commented, “For Aussies it’s the simple things that will make us happy in retirement – having enough money to live well and home security. We’re also a nation that’s not prepared to completely stop work with many choosing to continue some sort of casual work throughout retirement.”