Posted on 20 April '15 by , under General News.
For some time now, superannuation experts have been warning Australians not to be distracted by the seemingly large size of their retirement nest eggs. While the total balance of many super accounts may sound impressive, it can distract from the reality of the income stream it is likely to deliver.
Between longer life expectancies, inflation, and low interest rates, retirement savings are not always delivering the expected retirement income. Obviously, a range individual circumstances will dictate how much an individual will need to cover their expenses in retirement. In particular, single retirees will tend to have significantly higher living expenses than those who are co-habitating.
Furthermore, the trajectory of interest rates is a determining factor in how a nest egg will perform in pension phase. And, as we all know, accurately predicting the future of interest rates is an impossible undertaking.