Forecasting Wealth in an Ageing Australia: an approach using dynamic microsimulation

NATSEM has extended its dynamic microsimulation model to incorporate a wealth module. This paper describes the functioning of this new module and presents some examples of the usefulness of the model. The NATSEM model is now well suited to answering questions in regard to the ageing population. One example of its usefulness is to investigate the important question of the extent to which individuals can contribute to the cost of their retirement. This question is becoming increasingly important as pressure mounts on the public pension system in Australia. In this paper savings for retirement – through superannuation – by gender are projected out to 2030. The simulation estimates that average superannuation balances will increase, especially for women, but it will still only provide a small supplement to the
pension.