One of the key considerations in saving for retirement is that we are living longer and longer lives – much longer than once expected. Indeed, the life expectancy gap between males and females at birth is now at its narrowest in more than 50 years. The Government Actuary in late November released the Australian Life Tables 2005-07, based on the mortality experience of Australians over a three-year period centred on the 2006 Census. These give a fascinating insight into the future. Males born today can expect to live for 79 years against 83.7 years for females. And a male aged 65 today can expected to live until age 83.5 (up from 82.7) while a female of the same age can expect to live until 86.6 (up from 86.15). Visit the Government Actuary site for more details. As the editors of Super News, published by Thomson Reuters, write, the Australian Life Tables provide an "authoritative snapshot" of our morality at a given time. Fortunately, recognition about the inadequacy of Australia's retirement savings and the need to save for a longer and longer life are clearing gaining increasing recognition. And this recognition will no doubt gather pace with the current review of Australia's Future Tax System, chaired by Treasury secretary Ken Henry, and the Review into the Governance, Efficiency and Operation of Australia's Superannuation System, chaired by former ASIC deputy chairman Jeremy Cooper. On December 4, Smart Investing discussed how a recent survey by financial researcher Investment Trends gives a disturbing impression of Australia's retirement savings for individuals on the eve of retirement or already in retirement. Read that article here.
10th-December-2009 | 
