The report predicts that by 2035 it is expected that one in four men and one in five women aged in their sixties will be in poor health and not be able to work through till age 70 (the proposed Age Pension qualifying age in 2035).
But there’s still time to change that statistic. When it comes to retirement it’s important to start thinking not only about your finances but also your health.
Start by asking yourself:
- Will I be healthy enough to work until 70?
- Will I have enough money to retire when I want to?
- Will my health affect how long I can work for or the work that I do?
- Will I need to save more for my retirement?
For many of us, when we hear the word retirement, we’re likely to think of travel, family and relaxation. It’s a reward after many years of working hard.
But with increasing life expectancy, Australians may need to work longer to save more for retirement. The thought of more years at work won’t be welcome news for many people, and it raises the question if we’ll be healthy enough to go the distance?
The new AMP.NATSEM report, Going the distance: Working longer, living healthier found Australians have one of the highest life expectancies in the world, and it’s expected to increase.
But for those of us in poor health, staying in the workforce longer may be a particular challenge.
If you’re not sure about the answers, you may need to change the way you think about retirement. Rather than giving up full-time work completely, many of us are likely to reduce our working hours gradually to give us more time to focus on our health and wellbeing, while still saving money.
If you’d like to know more about what all this means for your personal situation, you can:
- read the full AMP.NATSEM report
- watch our AMP.NATSEM video
- talk to your financial adviser who can help you prepare for retirement.
Taking your super as a lump sum might be tempting, but it won’t be the best option for everyone.