The purpose of Swiss Re's Retirement Working Group is to discuss a diverse range of global and local topics impacting the Australian retirement landscape. It will bring together strong and diverse expertise across Australia's retirement ecosystem to share knowledge, better understand challenges and the needs of all ageing consumers and their families.
The group has debated and discussed the complexity of emerging aged care needs, bias(es) preferences, challenges associated with navigating a complex social welfare system, income adequacy and future retirement income solutions. With two sessions remaining in the series, the focus will be on emerging care needs and global ageing solutions.
Insights generated from the group so far are outlined below:
Ageing has significant intergenerational impact, with the cost of informal care estimated to be over $60 billion, largely provided by family. Many people in their 50s feel “compressed” due to financial and social pressures from both sides of their generation.
There is a lack of positive ageing and retirement planning stories in mainstream media, resulting in negatively skewed perception in the community. This presents a gap requiring early engagement and education to promote the benefits of ageing and the need for preparation to achieve their desired retirement goals.
Only 15 per cent of the population over the age of 80 will end up in residential aged care, yet the complexity of navigating the system is a significant challenge for most. It can often be difficult to obtain quality advice especially as the average financial advisor may not be a specialised expert on the retirement.
A super fund trustee will need to consider the diversity of wealth levels, quality of health, drawdown preferences and operational complexities when constructing a Comprehensive Income Product for Retirement. Whilst a 'nudge' is required to promote the intended outcome, multiple default options may be required to address the varied needs of members within a fund.
In addition, we have also engaged with ASFA and a number of the leading superannuation funds to share their expertise and input into future opportunities.
Click here to find out who are the members of the working group.