Investment has been under the spotlight again, with new research from MLC revealing some interesting facts.
When it comes to Australian accumulators and pre-retirees, research revealed that they would invest on average at least 55% of their super savings in a longevity protection product.
A nation-wide survey of 8300 Australians, aged over 40, indicated they intend to transfer 44% of their retirement savings into a retirement income product, of which 55% would be potentially protected.
MLC Retirement Solutions General Manager, Andrew Barnett, said, “We’ve known for some time now that longevity risk is a real concern for retirees or those thinking about retirement. Australians understand that they are living longer and they need to make their money last as long as they live.
“Investing over half your savings may seem a little high to some, however, it’s not that surprising when you consider the need of many retirees to protect the money they’re relying on to live a comfortable retirement.”
However, Mr Barnett also noted that many guaranteed income products - including variable and lifetime annuities - were being overlooked.
Comprising just 2% of the market, he said this showed a lack of awareness about the products.
However, in the light of the longevity risk report, this could soon change, Mr Barnett said.
Further research from MLC also revealed that the Australian dream is still to pay off the mortgage, with more than 80% of Australians making outright home ownership their main priority.
Asked what they would do with a $50,000 gift, most survey respondents said they would put more than half onto their mortgage.