25% of Australians haven’t planned for a longer lifespan despite advances in life expectancy, according to a new research report titled: “Hope for the best, plan for the worst? Insights into our planning for a longer life”
New research by National Seniors Australia indicates that around 25% of Australians haven’t planned for a longer life span, despite the average life expectancy at 65 increasing markedly since the 1980. Further, those who had planned still hadn’t planned for the final phase of their lives. Only 3% expected to spend more money in later life, 60% planned to spend a steady, wage-like amount throughout their retirement. 35% planned on spending more in the early years.
Heart Financial Advisers Principal Stu Varidel commenting on this report said “Older Australians need to have a reality check about exactly how long their money will last and what they should do to plan for this possibility. An income 40 of work may have to cover 90 or more years of life. Aged care and medical costs bills will be higher as we get older and I believe that very few people are ready for this”.
“There’s also an obvious contest between spending on leisure activities and holidays, versus providing for better care down the track. We have a negative view of later life and don’t think enough about it,” Stu Varidel said.
The report, argued that there is a limited availability and take-up of financial products that can assist individuals to effectively manage the risk of outliving their savings. The majority who are planning for extended life spans, are planning for even spending over time, like using a wage, rather than for more in their later years when their needs will be highest, the report said.
We note that the federal government spent $18 billion on aged care in the last financial year, it is imperative that the federal government identifies practical savings options for older Australians.
The message here is that you need a clear direction and help when planning for retirement which can only come from an appropriately qualified financial adviser.
Disclaimer
This information is current as at 15/2018. This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.
