The Intergenerational Report stresses the need for policymakers to pay attention to retiree spending so they can adapt policies to suit this growing demographic.
Such is the view of the Association of Superannuation Funds of Australia (AFSA), which said Australians need to use tools to plan for retirement as longer periods of retirement looms for many retirees.
"Government finances will continue to be under pressure over the coming decades, and the best way to protect yourself against future policy changes is to start saving now for the retirement you want," ASFA CEO Pauline Vamos said.
ASFA found there was a halt in the rising cost of living in the December quarter as an 8 per cent fall in petrol prices provided relief.
This offset a 0.1 per cent increase in food prices.
Older couples aged around 65 seeking a comfortable retirement will need to spend $58,364 a year, up 0.1 per cent on the previous quarter. This will mean they need a joint super balance of around $510,000.
Older singles wanting a comfortable retirement will need to spend $42,604 a year, requiring a balance of around $430,000.
New research has shown Australians are retiring at their oldest age in over 50 years.
The $300 billion fund has announced the development of a new flexible lifetime income option in partnership with TAL.
As regulators spur funds to focus on Australia’s ageing population and overseas players voice their interests, professionals expect a boost in innovative activity in super.
Over half of Australians hope to live to 100 years, according to MetLife, and 90 per cent believe retirement should be redefined to account for a longer lifespan.
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