Life expectancies are increasing, superannuation balances are growing, and policy shifts are reshaping how Australians think about their wealth. They aren't just looking at a dollar figure for retirement - they want purpose, freedom, and financial security that lasts.
But while many Australians are preparing for longer retirements, have their financial strategies kept up with the pace? Too often, retirement planning is still framed around one question: “How much is enough?”
It's time to move beyond that and think holistically.
Longevity
Longevity risks - a rising concern for Australians
Did you know that we spend on average 25 years in retirement? That's a third of our lives.1 And almost one in two Australians have said they're unsure if their money will last in retirement.
To address this effectively, you need solutions that can provide certainty and stability at the core of retirement portfolios. Products such as lifetime income streams are helping address this head-on through providing retirees with the confidence of a regular income, guaranteed for life.
Legacy
Leaving a legacy is one of the most emotional goals a person will work towards
A holistic retirement also means planning not just for today, but for the future. Thinking about your legacy plan as part of your retirement planning ensures that your retirement can also be meaningful.
One unexpected beneficiary payout tool that helps challenge this uncertainty comes in the form of the investment-linked lifetime income stream.
Lifestyle
Australian retirees are living frugally out of fear of outliving savings
Modern retirement planning is no longer just about managing money - it's about managing life.
Regret risk is a very real phenomenon amongst Australian retirees. It's the notion that retirees live frugally in their early years of retirement out of fear of running out of money, only to look back once they reach their later years and feel a sense of regret from being overly frugal.
Annuitising a portion of your retirement savings can enhance lifestyle and restore confidence in spending. It complements account-based pensions and other income sources, such as the Age Pension, allowing these to be used more strategically. This approach can also simplify budgeting and reduce the stress of sequencing risk - that is, the impact that the volatility of returns has on your investment portfolio.
Lifetime income streams empower a holistic retirement
A strong retirement strategy doesn't rely on a single product. It's built on a combination of tools. Lifetime incomes streams are one tool that can support all three pillars of holistic retirement planning.
Investment-linked lifetime income streams can offer:
- Income guaranteed for life - confidence of an income guaranteed for life backed by one of the world's largest reinsurers.
- Annual income reset - income payments that adjust annually, based on investment performance.
- Switch at any time - flexibility to adapt your investment strategy as your circumstances evolve and switch investment options at any time.3
- Gain access to the Age Pension - for many couples with an estimated average of $800,000 - $1,100,000 in assets, annuitisation can improve Age Pension eligibility.
Speak to your financial adviser to learn how lifetime income streams can complement your retirement strategy.