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The retirement puzzle

Ummul Ruthbah

Australian Journal of Management, 2022, vol. 47, issue 2, 342-367

Abstract: The present-day retirees may not be as well off as they expect to be during their retirement. Given the current state of the world – higher life expectancy, close to zero real interest rate and the economic turmoil caused by Covid-19 pandemic, a superannuation balance as large as $545,000 may not be enough to support a comfortable lifestyle. Besides, the means-tested age pension results in cases where spending at retirement does not increase proportionally with assets, providing incentives for a broad spectrum of people to deplete their superannuation in the early years of retirement, with significant negative consequences for government finances. JEL Classification : G17, G18, G51, H55

Keywords: Comfortable retirement; longevity; means-tested age pension; superannuation (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1177/03128962211014577

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Handle: RePEc:sae:ausman:v:47:y:2022:i:2:p:342-367