Australians rethink retirement as 100-year lifespans become the new norm – MetLife
Australians rethink retirement as 100-year lifespans become the new norm – MetLife | Insurance Business Australia
Life & Health
Australians rethink retirement as 100-year lifespans become the new norm – MetLife
Insurer highlights importance of member engagement with superannuation funds
Life & Health
By
Roxanne Libatique
A recent global survey conducted by MetLife has revealed changing perspectives among Australians regarding life expectancy and retirement planning.
According to the report, 53% of Australians now anticipate living beyond 100 years old, a trend that reflects a broader global shift in attitudes. Many believe that by 2035, reaching the century mark will become increasingly common.
Australian rethink traditional life stages
The study, which included responses from over 18,000 participants across 12 countries, including Australia, indicated that extended lifespans are prompting Australians to rethink traditional life stages, such as career progression, education, and retirement.
As life expectancy grows, Australians are beginning to explore new approaches to these phases of life.
Wendy Tse, chief of staff for strategy and external affairs at MetLife Australia, stated that the possibility of longer lives is reshaping the way people need to approach financial planning.
“A different approach to securing financial health is needed and must consider longer-term horizons that support projected life expectancies,” she said.
She explained that preparing early for retirement is essential to maintaining a secure lifestyle, and seeking financial advice will help Australians optimise their retirement.
Australians unprepared for retirement
MetLife’s findings showed that many Australians remain underprepared for retirement.
Half of the respondents reported that they do not have a formal retirement plan in place, and 70% of Australians between the ages of 40 and 60 expressed concerns about exhausting their savings. This underscores the critical role of financial advisors in helping Australians create more sustainable retirement plans and manage the financial risks associated with living longer.
Superannuation funds in Australia are responding to these evolving needs by offering retirement solutions that provide flexibility and stability.
Many funds are collaborating with insurers to introduce longevity-focused products alongside account-based pensions. These options aim to provide retirees with a stable income while maintaining flexibility, allowing access to capital when necessary and helping to mitigate the risks associated with longer lifespans.
Member engagement with superannuation funds
The study also highlighted the importance of member engagement with superannuation funds.
According to the report, individuals who actively engage with their superannuation accounts, including associated insurance products, are more likely to remain loyal to their funds.
In response, super funds are ramping up efforts to provide tailored guidance, flexible retirement options, and educational resources.
Tse said this is the time for super funds to empower their members by offering the tools needed to take control of their financial futures.
The ongoing Quality of Advice Review in Australia was also noted in the report as a key initiative to improve the accessibility and affordability of financial advice. Ensuring that Australians can access informed guidance will be crucial in helping them navigate retirement planning as life expectancies continue to rise.
Seventy per cent of respondents cited economic inequality as a significant concern, while 65% pointed to climate change as a pressing issue. Additionally, 82% of Australians surveyed believe that societal conditions may worsen before they improve.
The survey revealed that 91% of Australians see the need for leaders to adopt a long-term vision when tackling critical issues such as financial security and environmental sustainability.
As Australia’s population continues to age, the expectations around retirement are evolving, with many Australians calling for a re-evaluation of traditional life stages.
The report found that 85% of Australians believe education, career trajectories, and retirement structures need to be rethought to accommodate longer life expectancies.
Finally, the survey connected the focus on wellbeing to broader societal and economic benefits. Eighty-seven percent of Australians believe that prioritising wellbeing is essential, and many see it as key to improving both societal wealth and business growth.
Respondents also expressed that businesses that focus on the health and wellbeing of their employees are likely to see positive impacts on productivity and success.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
