It’s well-known Australians underestimate how long they’ll live by about five years. More concerning, they tend to underestimate the costs of living as they age, generally forgetting about needing extra supportive care in the home or in aged care, say CRAIG PHILLIPS and LUISA CAPEZIO.

FOR people over age 65 today and a member of a couple, your life expectancy is about 93 years. Having a plan to give you enough retirement savings or investments is critical.

Prepare for the frailty years

Have you planned for your frailty years? The concept of running out of funds between your retirement to the end of life is a pretty grim thought but worthy of serious attention while you are young enough to do something about it. Planning for your frailty years, (eg living with more than one comorbidity) warrants careful thought about whether your savings will last the distance.

Calculating retirement needs

What to do? Work out how much you think you will spend each year for 25+ years after full-time work stops. Consider how will you pay for supportive care if your or your partner’s health fails.

Ensure support for health challenges

If you need help, an adviser will calculate the amount of superannuation and/or other assets you will likely need for your retirement – based on your short, medium and long-term goals – and they will help tailor a personalised strategy for growing your nest egg while you’re still working.

Seek professional financial guidance

There are sensible, simple and widely used solutions to help support your other income sources that can even improve or enable eligibility for some age pension without the worry about share market volatility.

Acknowledging and proactively planning for the financial realities of ageing is a vital step towards ensuring a comfortable and secure retirement. Embrace the knowledge that Australians tend to underestimate both their lifespan and the costs associated with ageing, and take action to understand and plan for your later years. By devising a well-informed strategy and seeking the guidance of financial experts, you can look forward to a worry-free retirement.

To learn more, call 1300 102233 or book a introductory meeting via phillipswp.com.au

Disclaimer: This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Phillips Wealth Partners or your professional adviser. Phillips Wealth Partners Pty Ltd ACN 624858420 is a corporate authorised representative of Insight Investment Services Pty Ltd AFSL 309996.