Will you outlive your savings?
This is a question that must be answered by the vast numbers of Australians who are embarking on what may be a very long journey – at least one partner in 75% of couples is likely to live to 90 or beyond.
Obviously, the answer depends on several deeper issues:
- How long might we live?
- How much income will we need and want?
- How much do we need saved to retire safely?
- What level of investment risk should we take?
The answers are often surprising. For instance:
- 15% of all 60 year olds will live to age 100
- The level of income projected to be required after age 85 is actually increasing due to the costs of independent living care
Leading actuarial firm RiceWarner has identified a $450 million retirement savings gap in Australia. This confirms what many financial planners tell us – a majority of Australians face the imperfect choice between:
- Living poor and dying rich; or
- Risking outliving their savings
This dilemma has been termed Longevity Risk. Ingevity aims to provide a better choice.
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