In our latest research, we examine whether superannuation can be used to improve happiness in retirement.
Does more super buy you more happiness in retirement?
The purpose of superannuation is to provide income for Australians in retirement. Yet, as the recent Retirement Income Review found, there has been insufficient attention put on helping people to optimise their retirement income through the efficient use of their savings.
If you think about it, it’s not surprising that most Australian retirees stick to the government minimums. Why would they withdraw more? They don’t know what a sustainable level of income is and running out of money later in life is a genuine fear. As well as this, myths such as the $1 million minimum still exist, causing additional angst.
So perhaps we need to rethink how we’re positioning superannuation. Maybe it isn’t only about accumulating wealth and providing an income. Perhaps it’s more about enabling better and healthier lives in retirement.
For this reason, we wanted to turn this problem on its head and not ask, how much superannuation do you need in retirement, but instead: how can superannuation be used to improve happiness in retirement for all Australians?
Dr David Knox BA PhD FIAA
Senior Partner, Senior Actuary
Will Burkitt
Partner, Retirement and Innovation Leader
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