A Critical Evolution
in Retirement Planning
The average Australian can expect to live 5-10 years longer than their parents. While this is great news, it creates new challenges for retirement planning.
Our research shows traditional retirement planning approaches based on life expectancy estimates are no longer sufficient for effective retirement planning and risk management. In fact, the biggest retirement risk in funding retirement isn’t market volatility – it’s running out of money too soon!
LATEST DATA
OVER5MILLION
OF AUSTRALIANS UNDERESTIMATE THEIR LIFE EXPECTANCY BY 5+ YEARS
LATEST DATA
OVER5MILLION
BILLION
IN RETIREMENT SAVINGS EXPOSED TO LONGEVITY RISK BY 2030
LATEST DATA
OVER5MILLION
OF SUPER FUND MEMBERS EXPECT GUIDANCE ON
LONGEVITY RISK
Why Traditional Strategies Fall Short
The Drawdown
Dilemma
Super Savings Won’t Last Forever – Research shows retirees either withdraw too conservatively, compromising lifestyle, or too aggressively, risking long-term security.
Beyond
Market Risk
Investment returns fluctuate, but expenses don’t. A market downturn early in retirement can shrink savings faster than expected.
The Lifespan
Misconception
Studies indicate most people underestimate how long they’ll live, leading to potential financial shortfalls in later years.
Challenges
FOR RETIREES
- Conservative drawdown strategies impacting retirement quality
- Account-based pensions alone may not provide adequate protection
- Difficulty quantifying late-life healthcare cost provisions
Challenges
FINANCIAL ADVISERS + SUPER FUNDS
- Rising fiduciary responsibility for longevity protection
- Increasing demand for guaranteed income solutions
- Client/Member retention through retirement phase
A Smarter
Path Forward
The retirement income covenant has intensified focus on comprehensive retirement income solutions. Our research shows that integrating lifetime income into retirement strategies can help remove the guesswork, ensuring retirees receive guaranteed income for life—no matter how long they live.
By considering including innovative lifetime income products, financial advisers and superannuation funds can help Australians retire with confidence, security, and peace of mind.
Articles about Longevity Risk + Solutions
The Formula That Changed Retirement
This year marks the bicentennial of Benjamin Gompertz’s groundbreaking paper, On the Nature...
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How Advisers Can Tackle Longevity Risk
The “Longevity Equation” represents one of retirement planning’s most significant challenges: how to...
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How Innovative Retirement Income Streams Compare to CPI-linked Annuities
Case Study: Exploring Outcomes for a 70-Year-Old Retiree CPI-linked lifetime annuities offer predictable,...
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Why Women Face Higher Retirement Risk – and What You Can Do About It
The Longevity Gap Women, on average, tend to outlive men and often have...
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The Longevity Conversation: The Missing Link in Retirement Advice
In the complex landscape of retirement planning, one question towers above all others:...
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The Growing Call for Lifetime Income Products in Australia
We welcome the Grattan Institute’s recent report, Simpler Super: Taking the Stress Out of...
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Take the Longevity Challenge
Research shows most people underestimate their longevity by 5-10 years. Use our Lifespan Calculator to access evidence-based projections and have more informed discussions about retirement planning.
