Retirement planning – will you outlive your savings?

As you think about your retirement planning, here’s the good news: there’s a great chance you will live longer than you think you will! The results of a UK survey show a strong tendency amongst retirees to underestimate how long they believe they will live. So, for instance, respondents thought that of 10 men in good health at age 65, only two of those would live to the age of 90. In reality, that number is closer to four – and rising.

That has to be good news doesn’t it?

Well yes, to a point. The good news starts to lose its shine when we look at the typical retiree’s financial situation.

Many Australians don’t allow enough savings for retirement

The reality, according to a report released just this month by National Seniors Australia, is that the retirement planning of around a quarter of Australians doesn’t sufficiently allow for their finances to last as long as they’ll need to.

There are some – quite a lot, in fact – whose retirement savings are insufficient from the outset. Another UK survey suggests that 67% of people are ‘somewhat or very likely to work part-time in retirement’. There’s no reason to think this number would be significantly different in Australia.

And then there are those who have carefully planned their retirement savings using some questionable assumptions.

First, there are those, as mentioned, who underestimate how long they will live, and therefore how long their savings need to last.

Then there are those whose retirement planning fails to factor in likely higher costs of living in later life. According to National Seniors, 61% of retirees plan to spend a steady amount throughout their retirement.  Thirty-six percent plan to spend more in the early years of their retirement in later life. Both these groups underestimate the potentially high costs of their care in later life.

Having clarity about the real cost of living is important

Quoted on the IFA magazine website, National Seniors’ research director Professor John McCallum warns that many retirees need to be clearer about how their plans align with likely reality. “Medical and aged care bills tend to get higher as we get older and few people are ready for this”.

The overall message of all this is that professional guidance is always a good idea. This is the case even if you think you have plenty of savings to protect your future. At the very least every retiree should have someone with ‘distance’ from their situation who is willing to give them a reality check.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best tax-effective investment strategies for our clients. We have developed a number of systems to manage and track the marketplace.

The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments, and strategies that fit in with your retirement goals. We want, our clients to get on with enjoying their life rather than worrying about money.

For an obligation-free conversation about your financial future, please contact us on 03 9603 0072 or at

Phillip Richards and Robert Rich
Endorphin Wealth Management

Phillip Richards is a qualified Financial Advisor with over ten years’ experience. 
Contact Phillip today to discuss how you can build your own wealth and plan to reach your retirement goals.

Robert Rich is a qualified Financial Advisor with over nine years of personal investment experience. 
Contact Robert today to discuss how you can build your own wealth and plan to reach your retirement goals.



This information is general in nature and does not take your personal situation into account.

Contact Us for quality financial advice so you can feel good about your future.