Do you think you’ll make it to the age of 100? If you do, you might be surprised to learn that the majority of Australians believe they will, too. A global survey conducted by insurance giant MetLife shows 53 per cent of Australians think they will reach a century. It’s a reflection of a shifting attitude in general towards later life in Australia. Is it time, then, to rethink how we approach retirement planning?
I have a vivid memory of a discussion my mum had with her sister in 1977. Somehow the topic of living to 100 came up in conversation. The prospect of making it to a century horrified her. “I hope I’m long gone before I get to 100,” she said.
Mum was 52 years old at the time. Through extended family and friends mum had seen many older people struggle in later life. Perhaps that was what put her off. In the end, she got her ‘wish’, passing away at age 93 in 2018.
By this stage she had advanced dementia and was unaware of anything or anyone around her. However, in the early stages of dementia, when it became clear she’d need to move into aged care, I witnessed her realisation of her 1977 nightmare coming true. Having just moved into an aged care facility, she said, “I guess I’ll just be waiting here to die.”
It was a heartbreaking statement, one that will never leave me. I turned 52 myself while mum was in aged care. That milestone and her comment has since left me wondering often about how we can improve retirement planning. And, therefore, improve actual retirement living.
A change of attitude towards retirement planning
I can’t claim to have come up with any revolutionary answers to that question, However, other more learned people than I have taken up the challenge. While it’s statistically improbable that 53 per cent of those of us aged over 50 will make 100, many will. And more of the generations behind us will, too. At some point, barring an unforeseen seismic shift, we will get to a point where more than half of us live beyond 100.
The question then is, what changes – if any – do we need to make to our retirement planning? This is a question for both individuals and our nation as a whole.
According to the MetLife survey, a major part of addressing this issue is, unsurprisingly, financial. A longer life will for many mean a longer retirement, which will need to be funded one way or another.
Beyond personal finance, though, MetLife’s survey revealed an increasing concern among Aussies about broader, societal issues. This was highlighted in three specific areas:
- 65 per cent of Australians pointed to climate change as a pressing issue.
- 82 per cent of Australians surveyed believe that societal conditions may worsen before they improve.
- 91 per cent of Australians see the need for leaders to adopt a long-term vision when tackling critical issues such as financial security and environmental sustainability.
Individual planning
Common themes among respondents were fears of not having enough money for retirement and a need to re-evaluate retirement planning. Around 70 per cent of Australians between the ages of 40 and 60 expressed concerns about exhausting their savings. And 85 per cent believe education, career trajectories and retirement structures need to be rethought to accommodate longer life expectancies.
“A different approach to securing financial health is needed and must consider longer-term horizons that support projected life expectancies,” said Wendy Tse, chief of staff for strategy and external affairs at MetLife Australia.
With 87 per cent of Australians believing that prioritising wellbeing is essential, one hopes that is a priority for policymakers. That, in turn, will hopefully mean fewer Australians in future arriving at an aged care facility and repeating mum’s words: “I guess I’ll just be waiting here to die.”
Do you see yourself living to 100? And if you do, do you think you have adequate plans in place? Let us know via the comments section below.
Also read: Retirement checklists? Boring but beneficial
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