Australian appetite for longevity products continues to grow
Australian accumulators and pre-retirees would invest on average at least 55% of their super savings in a longevity protection product according new research released today.
Retirement Solutions General Manager, Andrew Barnett, said the MLC Investment Trends Retirement Income Report, which draws on a nation-wide survey of 8300 Australians aged over 40, indicates that accumulators and pre-retirees intend to transfer 44% of their retirement savings into a retirement income product, of which 55% would be potentially protected.
“We’ve known for some time now that longevity risk is a real concern for retirees or those thinking about retirement. Australians understand that they are living longer and they need to make their money last as long as they live,” Mr Barnett said.
“Investing over half your savings may seem a little high to some, however, it’s not that surprising when you consider the need of many retirees to protect the money they’re relying on to live a comfortable retirement.”
The report also showed that 18% of accumulators and pre-retirees cited ‘income lasts for life, however long I live,’ as the single most important feature desired in a retirement product.
“Fortunately for many, there are now products available which have many of the features retirees are looking for including guaranteed income for life, while providing flexibility to access capital when required,” he added.
MLC is part of National Australia Bank’s wealth management division. NAB is committed to providing investment, superannuation, insurance and financial advice to our corporate, institutional and retail customers. We have one of the largest financial planning networks in Australia, providing quality financial advice, insights and expertise through NAB Financial Planning, MLC Financial Planning, MLC Advice, Godfrey Pembroke, Garvan Financial Planning, Apogee Financial Planning and Meritum.