New research released by Mercer this week shows more than 60 per cent of retirees will run out of money before they die.
The average Australian will have only enough savings to last 14 years beyond retirement and is expected to outlive their savings by five years.
Committee for Sustainable Retirement Income executive director Patricia Pascuzzo said that Australians generally needed a retirement income of about 60–70 per cent of the pre-retirement earnings.
She believes that more needs to be done to nudge people into the appropriate solutions as one in five retirees are drawing down on their super at an unsustainable rate.
“You’ve got more and more people who aren’t living with the peace of mind in retirement that they could have if they were given better support in the lead up and during retirement,” she said.
“This highlights the importance of making the most efficient use of their super balance and all their assets, including their house, in retirement given that many are not going to be self-sufficient and still reliant on the aged pension.”
Are you concerned about running out of money before dying? How have you approached money management in retirement?
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