Living longer
Thanks to improvements in medicines and living standards, we're living longer, healthier lives. This is great news, but it also means we may have to make our money last longer in retirement.
Life expectancy
The average life expectancy has risen substantially in recent years and it continues to increase, particularly for people over the age of 65.
Australian post-retirement life expectancy is amongst the highest in the world.
Further, despite the continuing increases in life expectancy and reductions in mortality rates, most life expectancy figures quoted assume that these improvements stop in 2007 and that mortality rates will remain at 2007 levels into the future.
Once you allow for the impacts of future mortality improvements, Challenger estimates that an Australian male aged 65 years old in 2010 could expect to live to 90 while a woman aged 65 years old could expect to live to 92.
For a couple aged 65, there is a 50% chance that at least one partner will live to 98.
So, if you are planning to retire at 65, your money may need to last around 30 years. But what if it had to last for 40 years? Could you afford to support yourself? Or would you be dependent on the Government Age Pension?
Any information contained in this publication is current as at February 2011 and is provided by Challenger Life Company Limited ABN 44 072 486 938 AFSL 234670, the issuer of all Challenger annuities, Challenger Retirement Services Pty Ltd ABN 80 115 534 453 AFSL 295642, the issuer of Challenger's superannuation and allocated pensions or Challenger Managed Investments Limited ABN 94 002 835 592 AFSL 234668, the issuer of units in the Challenger Guaranteed Income Fund ARSN 139 607 122. It should be regarded as general information only rather than advice. It has been prepared without taking account of any person's objectives, financial situation or needs. Because of that each person should, before acting on any such information, consider its appropriateness, having regard to their objectives, financial situation and needs. Each person should obtain a Product Disclosure Statement (PDS) relating to the product and consider that Statement before making any decision about the product. A copy of the relevant PDS can be obtained from your financial adviser, our Investor Services team on 13 35 66, or on our website.
If you acquire or hold the product, we and/or the Challenger group of companies will receive fees and other benefits which are generally disclosed in the PDS or other disclosure document for the product. We and/or the Challenger group of companies and our respective employees do not receive any specific remuneration for any advice provided to you. However, financial advisers (including some Challenger group companies) may receive fees or commissions if they provide advice to you or arrange for you to invest in the product. Challenger Life Company Limited, Challenger Managed Investments Limited, Challenger Retirement Services Pty Ltd, some or all of Challenger group companies and directors of those companies may benefit from fees, commissions and other benefits received by another group company.
