Will your money last

June 30 2017

While the thought of living so long might be appealing, a long life does have financial implications. It can be a long time to fund your retirement and, if you’re unlucky to suffer from ill health, the demands on your financial resources will be even greater.

Today the life expectancy for 65 year old women is 87. For men it's 84 and it’s increasing1. ESSSuper members live even longer. A 55 year old male member today can expect to live to 91 and the life expectation for females is 93.


CHOICES YOU MAKE

The choices you make, about what you do with your money, will have a big impact on the type of life you’ll be able to live for the rest of your life. There are two sides to the equation and it’s important to get the balance right. Both elements will impact how long your money lasts in retirement.

The life you choose to live

Many people retiring use the opportunity to travel, take on new interests and hobbies and pursue those interests they haven’t had time for when working. The trouble is, many of these interests cost money. 

So, when you’re planning what you’ll do when you retire, don’t forget to factor in how much it will cost.

Do your research, talk to friends who are already involved in the activities you want to pursue and find out just how much that language or painting course will cost. But then explore alternatives. There are many low-cost alternatives such as the University of the Third Age which enable you to develop new interests and meet new people for minimal cost.

Learn more about Retirement Life Stages

How you invest your money

If you’ve been working for many years you’re used to receiving a regular income and budgeting and planning on the basis of this.

We make it easy for you to plan your retirement and when you’re ready to make decisions, we have an award winning Retirement Income Stream to provide a source of income for the years ahead.

The ESSSuper Retirement Income Stream converts your lump sum super benefit into a regular income.

It offers you the choice of 8 investment options with different levels of risk and security. It’s important to carefully plan your investment choices as your account balance, and the amount you can draw as an income, is determined by the amount you invest and the returns on that investment along with fees and costs.

The timing and order you draw income from your Retirement Income Stream can also significantly impact how long you can sustain your income in retirement.

Learn more about Retirement Income Streams

 

VIDEO: Watch our short video on the Retirement Income Stream


What can you do?

Step 1: Research

The first step is to make sure you have enough super to last the distance. Not retiring with enough money - and then outliving what you do have - are considered two of the greatest risks in retirement. Think about the interests you want to take up in retirement, check their costs and explore alternatives.

Login to Members online to review your Benefit Estimate

Step 2: Explore your super options

Come to a free seminar, or two, to find out how to grow your retirement savings. Boosting Your Super and Planning for Retirement are good places to start.

Upcoming seminars

Step 3: Talk to us

Meet with a Member Education Consultant to discuss your options.

Approaching retirement? Contact us

Step 4: Seek advice2

If you want personal financial advice, book an appointment with one of our financial advisers who can assess your individual situation and help you plan so that you super does last the distance.

Learn more about our Financial Advice

Step 5: Make decisions

With the help of research you do and assistance from us, you’ll be in a position to make the decisions which are right for you.

 

 


1. Australian Bureau of Statistics data 2011-2013

2. ESSSuper Member Education Advisers and Financial Planners are authorised representatives of Adviser Network and will only recommend a product after considering its suitability for your financial needs. Adviser Network holds a current Australian Financial Services Licence (AFSL) No. 232729 and is responsible for the financial services provided to you. ESSSuper has contracted Adviser Network to provide authorisation under the Adviser Network AFSL for the provision of personal financial advice services to ESSSuper members. Adviser Network is paid a fee by ESSSuper for this service. Neither the Board, nor the Victorian Government, guarantee or endorse any recommendations made by Adviser Network Pty Ltd, or are responsible for the advice and actions of Adviser Network Pty Ltd.