Providing a guide to how long retirement savings need to last is the focus of a new service launched by Retirement Edge.
The tool, powered by Optimum Pensions, is designed to help advisers illustrate the life expectancy of retirees based on a standard set of questions that should take 10 minutes to answer.
Questions cover:
- Health and lifestyle
- Marital status
- Desired confidence level and attitude to risk
Results are based on the latest life tables from the ABS, the Australian Government Actuary, and health data from one the world’s largest reinsurers of longevity risk.
Retirement Edge states that too many Australians focus on how much they will need to retire, instead of how long their financial plan and retirement funds will need to last.
The firm states retirees need a solid understanding of the probability of living to a certain age, plus access to retirement products, that will guarantee retirement income.