Up to 20 per cent of Australians fear they will not gain enough from their super or other investments to ever stop working, while one in five said they will have to cut back on their spending, a study from Finder revealed.

The Association of Superannuation Funds of Australia recommends singles have $595,000 tucked away and couples have $690,000 to live comfortably in retirement.

According to data from the ATO, the average Australian has about $172,000 in super, but the median sits at $66,000 for men and $52,000 for women.

As a result, the retirement dream could be out of reach for many Aussies.

“Insufficient super or savings could see millions of Aussies facing financial strain in their later years,” Pascale Heylar-Moray from Finder said.

“More and more people are worried that retirement will arrive before the money does, leaving them underprepared.”

This means more will have to fall back on measures such as the Age Pension, but Heylar-Morey warns this may not be an option for some: “The Age Pension isn’t guaranteed, your assets could disqualify you from receiving it”.

A further 27 per cent of Aussies are still unsure if they will have enough super to get by in retirement, and 10 per cent believe they will need to utilise other investments to meet the shortfall.

Aussies are now looking to find new measures to avoid financial pain.

Salary sacrificing, where people can send a percentage of their wage directly into their super, can also help build a larger safety net.

“Super earnings below $30K are taxed at a maximum of just 15%, which means salary sacrificing into super could help grow your wealth while also lowering your tax,” Heylar-Morey said.

She also suggested Aussies consistently monitor the performance of their fund.

“Make sure that you aren’t stuck in a poorly performing fund,” she said.

“And check regularly that your employer is paying your 12% superannuation Guarantee contributions on time.”

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