Most Australians will fall almost $500,000 short of an adequate retirement income.
And about half the population expect to amass less money than they need for the post-work lifestyle they desire.
Financial services consultancy firm Mercer found that of baby girls born today, more than half will live beyond 95.
The firm’s managing director and Pacific market leader David Anderson said the longevity factor highlighted a problem that was only going to worsen.
“Australians will outlive their savings on average by five years, and one in four Australians will outlive their savings by 10 years.
“One in two pre-retirees and one in three retirees are concerned about longevity risks and they don’t have a plan to address it.’’
The Financial System Inquiry’s interim report, released earlier this year, said the lack of managing longevity risks was a major weakness of the retirement income system.
Mr Anderson said Australians “can’t retire confident in their savings”.
“It’s not good enough. We need to work hard for an improvement in the range of options available to Australians so they can retire more confidently and deal with the problem of having an income for their entire life, no matter how long they live,’’ he said.
Source: Sophie Elsworth, Herald Sun, 30/10/14