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Navigating retirement with confidence
The evolving retirement income landscape
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gl thoughtleadership
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Evolving retirement income landscape
Understand the changes to retirement income over time and the need for greater support when it comes to decumulation in retirement.
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Meeting retirement objectives
Thought provoking opportunities to design a comprehensive retirement income portfolio to meet the needs and objectives of retirees and their spending patterns.
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Important role of a financial adviser
The evolving retirement income landscape means the need for professional financial advice has never been greater. Understand the important role you play.
Navigating retirement with confidence
A thought leadership publication for financial advisers, exploring Australia’s retirement income landscape, the income solutions available to retirees, challenges retirees are facing and the opportunities ahead for the industry following the Government’s Retirement Income Review.
Australia excels at a lot of things and one of these things is our ability to save for our retirement.
According to the Government’s Retirement Income Review, in mid-2019 we had around $2.9 trillion in our superannuation accounts – that’s roughly one and half times the value of our annual gross domestic product. By 2038 we’re projected to collectively have well over ten trillion in our national retirement savings funds.*
Thanks to industrious citizens, government policy, a resilient economy and good share market returns we have met the challenge of saving for the future.
What we are not so good at managing is how we spend that money - how we help our citizens enjoy their retirement. Our Navigating retirement with confidence: The evolving retirement income landscape thought leadership publication is written for financial advisers, looking at current retirement income solutions and the opportunities now available following the introduction of the Innovative Superannuation Income Streams legislation in 2017 and the spotlight provided by the Government’s Retirement Income Review.
Now is the time to be engaging your clients on their retirement goals and objectives, and working with them to design a comprehensive retirement income plan to meet these objectives.
* Dynamics of the Australian Superannuation System, Deloitte Actuaries & Consultants, https://www2.deloitte.com/au/en/pages/financial-services/articles/dynamics-australian-superannuation-system.html, published November 2019
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Other information
- Around 500,000 Australians intend to transition into retirement over the next five years, joining the 3.9 million already in retirement.*
- According to the Government’s Retirement Income Review, in mid-2019 we had around $2.9 trillion in our superannuation accounts.**
- By 2038 we’re projected to collectively have well over ten trillion in our national retirement savings funds.**
* Note: reference period 2018-2019 financial year. Australian Bureau of Statistics, Retirement and Retirement Intentions, Australia - Retiree statistics and the retirement plans of people aged 45 years and over, issued May 2020
**Dynamics of the Australian Superannuation System, Deloitte Actuaries & Consultants, https://www2.deloitte.com/au/en/pages/financial-services/articles/dynamics-australian-superannuation-system.html, published November 2019
Many people:
- Only draw down the Government mandated minimum from their account-based pension.
- Feel they can only afford to draw the income from their retirement capital, rather than seeing the underlying capital as money they can spend.
- Invest to protect, rather than grow their capital.
Source: The Australian Government the Treasury, Retirement Income Review final report, https://treasury.gov.au/
publication/p2020-100554, published November 2020,
- Spending is highest in the earlier years of retirement, when a retiree is healthier and more active. May retirees may have a ‘bucket’ list of activities and experiences that they have been looking forward to ‘ticking off’ in retirement.
- What retirees spend their money on changes as they get older.
- Retirees generally over-estimate their future health costs.