Australians are living longer – a lot longer. We can anticipate that our life expectancy will continue to rise in the years to come.
According to the Federal Government’s 2015 Intergenerational Report, by 2055 the number of Australians aged over 65 will more than double. As much as 5% of the population will be aged over 85 and 40,000 Australians will have topped 100.
There’s a very good chance the money won’t last
Mercer’s latest research shows the average Australian will outlive their savings by more than five years and the retirement funds of one in four will fall short by 11 years. The research shows as many as 10% of the population may be forced to rely solely on the age pension for 15 years or more.
THE DRIVE FOR CHANGE
Longevity risk – the very real risk of running out of money in later years – provides a strong argument for changing the way we invest our retirement savings.
The recent Financial System Inquiry (FSI) report found the lack of effective longevity risk management was a major weakness of Australia’s retirement income system.
GOOD ADVICE IS A GREAT INVESTMENT
Managing multiple financial objectives and risks in retirement is complex and many retirees find it difficult to navigate the transition to the retirement.
Tailored advice can be an excellent investment in retirement. A Mercer financial adviser can determine the blend of investments best suited for your retirement needs and help ensure your savings last as long as you do.