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
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
ASIC has cancelled the AFSL of Sydney-based Arrumar Private after it failed to comply with the conditions of its licence.
Two investment advisory research houses have announced a merger to form a combined entity under the name Delta Portfolios.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
