Your retirement savings may have to work longer than you do

Your retirement savings may have to work longer than you do

posted in: SMSF, Superannuation | 0

On average, Australians expect to live to about 81.

We expect to start work at about 20 and then retire at 65.

Which means that you would have 45 years of work in which to save enough to live on for 16 years of retirement. Our research shows a vastly different picture.

  • Longevity is trending upwards
  • Life expectancy data changes as you attain older ages:
    •  A couple both aged 65 today has a 50% chance that one will live beyond 90
    •  A couple both aged 70 today has a 50% chance that one will live beyond 95

So what is becoming more likely is this:

• Work for 34 years
• Retire at 54
• Check out at 91.

That would give you only 34 years to finance 47 years of retirement.

Of course life may not turn out that way for you and many factors could influence what happens and when, but the point is this. It makes sense to plan for what’s likely rather than just hope for something better.

This is one of many retirement insights that enable us to help you achieve your goals. Call Robert Bauman** today on 1300 416 590 or email us at info@straightmoneytalk.com.au.

** Robert Bauman, Authorised Representative of Millennium3 Financial Services Pty Ltd ABN 61 094 529 987 AFSL 244252
This editorial does not consider your personal circumstances and is general advice only. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.

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