Retirement income adequacy trumps bequests to kids
Having a constant stream of regular income to cover essential needs has trumped leaving money to the kids, according to new research conducted by National Seniors Australia.
The research, published by annuities specialist company, Challenger, found that leaving money for the kids is no longer a top priority for older Australians with just 23 per cent of respondents rating it very important and only three per cent intending to preserve all their savings for an inheritance.
Challenger claimed these findings debunked the popular conception that leaving a financial legacy was a major concern for retirees.
“It’s time to put the inheritance myth to rest,” Challenger retirement income chair, Jeremy Cooper said. “Retirees have spoken and it’s clear that bequests are not the priority that many think they are. The need for regular income to avoid running out of money and, to pay for aged care and medical costs, is far more important for older Australians.”
“Bequests are not central to planning for their retirement and senior Australians are weighing these up against other trade-offs they must make to deal with longer lifespans,” National Seniors research director Professor John McCallum said.
“Having a constant stream of regular income to cover essential needs is the top priority for over 50s – 84 per cent rated it very important,” McCallum said.
Recommended for you
Sequoia Financial Group has seen a top-level reshuffle as the chair of the board, John Larsen, steps down after five years in the position.
As statements of advice move into the rear-view mirror, Vital Business Partners explores how financial advisers are adopting innovative documentation strategies.
Adviser Ratings has explored whether there is a financial benefit to advice firms seeking to have a specialised client base in terms of client assets and fees charged.
The Federal Court has approved the $16 million class action settlement regarding Dixon Advisory and Superannuation Services.