Running out of super in retirement is a genuine concern for those nearing retirement age. Research from the Association of Superannuation Funds of Australia (ASFA)[1] has found that the retirees with super drops with age, with the vast majority withdrawing all their super before passing away. The research found that more than 90% of those aged over 80 had no super in the four years before they passed away, while the impact for women was even more significant. Only 15% of females aged over 60 passed away with any super savings, compared to 25% for men.
Fortunately, there are things you can do now to reduce the risk of wiping out your nest egg after retiring.
Review your insurance cover – If you have any insurance cover, to make sure you aren’t paying too much in insurance premiums, check your level of cover regularly.
Plan your retirement – It could pay off to start thinking about your retirement three to five years before you intend to stop working. You may also want to review your retirement plans regularly, especially if you anticipate lifestyle changes.
[1] Superannuation balances prior to death: Superannuation balances of older Australians’, (March, 2021) The Association of Superannuation Funds of Australia (ASFA)