National Seniors Australia found that those aged 55-64 underestimated their life expectancy by almost 5 years. Due to improvements in medical care and living standards, the average life expectancy has risen in recent years and continues to increase, particularly for people over the age of 65.
If you're 65 today, there's a good chance you'll live well into your 90s.
Source: Challenger Life Company estimates
Living a long time means that your cost of living (and the purchasing power of your savings) will be affected by inflation over the long term.
How annuities can help
Challenger lifetime annuities provide a guaranteed monthly income that is regular and dependable. They help you to cover your essential expenses and maintain your standard of living for as long as you live, even if your original investment has been fully paid out to you due to living longer than average life expectancy.