An Australian retiree can expect to live, on average, 15 to 20 years, and some will live much longer. The essence of proper financial planning is to ensure that your investments are constructed in such a way so as to ensure a desired lifestyle with sufficient regular income, liquidity and capital in retirement by accumulating assets, investment portfolios and superannuation savings to retirement.
As the baby-boom generation moves into retirement, there will be more retired people than ever before. By the year 203 1, it is predicted that about 20.7 per cent of the Australian population will be aged over 65, compared to only 12 per cent in 1996.
Our Government is very aware of these statistics, hence the requirement for employers to compulsorily superannuate their employees. But, this superannuation will only go so far - a structured plan should be put in place to not only ensure the correct superannuation options are chosen, but that sufficient income generating assets are accumulated.