Enjoying a dignified retirement

Saving for a happy retirement is Australia's' #1 financial goal. But a financial knowledge gap amongst over-50’s means they could be missing out on the retirement they deserve.

The Australian Government, has done a great job of helping people save for retirement - but they have a lot more work to do in giving retirees the confidence to spend their savings responsibly allowing them to enjoy their retirement and leave a legacy to the next generation.

Patrick Clarke, General Manager Retirement Solutions, Generation Life.

A financial adviser can support you to optimise your wealth with a more diverse financial portfolio, so that you have the chance to enjoy the happy, dignified retirement you deserve, avoiding ‘regret risk’.

What is regret risk?

Many Australians arrive at retirement with  significant capital but no ability to manage that capital effectively. They are constantly threading together a knot of worries - can they live the lifestyle they want? Can they pass money onto their children? Will they run out of money? Their reward for 40 years of saving is not less financial uncertainty - it’s more.

As a result, many Australian retirees only draw down the minimum in their account based pension balance. They lack the confidence to spend, concerned their costs will go up towards the end of retirement. Once they reach the later years of their retirement journey they look back with a sense of regret for being too frugal in those early ears. At Generation Life, we call this 'regret risk'.

Retirees want to spend more in retirement

While many affluent and high net worth Australians perceive entering retirement as a time to cut back on their lifestyle, the opposite is true for those who are financially prepared. Travel, leisure activities, and time spent on enjoying hobbies are the most common things affluent and high net worth Australians associate with retirement.

Two in five expect to spend more than they currently do in the first years of retirement.* This spend does tail off, however it is indicative of both having access to funds for big ticket purchases, and ongoing income certainty.

Not surprisingly, one of the biggest fears is running out of money during retirement and the consequential impact on lifestyle. Fortunately the solution is straightforward - strong financial advice to help develop robust, yet flexible, retirement income portfolios to empower retirees with the confidence to enjoy their retirement.

LifeIncome - the new era of investment linked lifetime annuities

Generation Life is proud to offer LifeIncome - an investment-linked lifetime annuity that provides a unique combination of features following the government's decision to foster more innovative retirement solutions. We understand your retirement plan is not just a financial decision, it is an emotional journey.

Your retirement should be a well deserved break after years of hard work, not a time to worry about your savings and whether you’ll run out of money.

There are a number of misconceptions surrounding lifetime annuities, read our 7 reasons why Australians may not have considered investment-linked lifetime annuities and 7 facts why they should.

LifeIncome helps tackle these common concerns and gives you peace of mind to enjoy the happy dignified retirement you deserve.

A combination of features no other investment linked lifetime annuity provides:

• 29 investment options managed by professional fund managers

• The ability to hold these options in any combination and switch at almost any time

• A choice of income redistribution rates (called LifeBooster)

• The ability to purchase an annuity with non-super and superannuation monies

• The choice of fortnightly or monthly income payments

• A Dollar Cost Averaging investment approach

• The ability to nominate a reversionary beneficiary to receive income when the policy holder passes away and to nominate a reversionary beneficiary other than a spouse

• The ability to elect to receive more income as a couple, in return for reduced income when one of the couple passes away (called LifeIncome Flex).

Speak to your financial adviser to find out more

Speak to your financial adviser today to find out more about LifeIncome - Generation Life’s new era of investment-linked lifetime annuity and how you can enjoy a dignified retirement while also leaving a legacy for those that matter most.

* Funding a dignified retirement and leaving a legacy research - CoreData and Generation Life 2023.
**Australian Institute of Health and Welfare, 2023. ‘Aussies are living longer than ever before, but will this trend continue?’ AIHW.gov.au. July 11, 2023.