Feeling financially comfortable?: What retirees say

In 2014 the final report of Murray’s Financial System Inquiry presented two opposing retirement scenarios in an age of increasing longevity: the first was under the current superannuation system, where retirees adapt to “a lower standard of living in retirement to avoid outliving savings.” The second projected scenario, based on implementing the report’s recommendations, offered “higher and more enduring income in retirement.” The second scenario involves incorporating lifetime income products, such as annuities, into the mix of products offered to retirees. Since then, the government has been discussing the need for better financial products for people as they retire, so that they can maintain a satisfactory income through to end of life. Up to this time, the primary focus has been on financial products rather than on consumer demand and experiences.