Introduction
Retirement is no longer a short chapter – it’s an ongoing and evolving journey
Life expectancies are high, superannuation balances are growing, and policy shifts are reshaping how Australians think about their wealth. Australians aren’t just looking at a money figure for retirement – they want purpose, freedom, and financial security that lasts.
But while many Australians are preparing for longer retirements, have their financial strategies kept up with the pace? Too often, retirement planning is still framed around one question: “How much is enough?”
It’s time to move beyond that and think holistically.
So, how can advisers meet the complex needs of the next generation of retirees?
Today, Australia’s leading financial advisers are embracing a more holistic approach to retirement planning – one that focuses not just on accumulation, but on income sustainability, lifestyle flexibility, and peace of mind.
The 3 pillars of holistic retirement planning
Longevity
Longevity risks – a rising concern for Australians
Australians are living longer than ever, but that gift of time comes with a hidden cost – longevity risk.
Did you know that we spend on average 25 years in retirement? That’s a third of our lives.1 And with high life expectancies, many Australians are worried about outliving their savings. In fact, almost one in two have said they’re unsure if their money will last in retirement.2
Longevity risk is emotional as much as it is financial. And to address it effectively, we need solutions that can provide certainty and stability at the core of retirement portfolios. Products like lifetime income streams are helping address this head-on through providing Australian retirees with the confidence of a regular income, guaranteed for life, which can be linked to investment performance.
Lifestyle
Australian retirees are living frugally out of fear of outliving savings
Modern retirement planning is no longer just about managing money – it’s about managing life.
Regret risk is a very real phenomenon amongst Australian retirees. What is it? It’s the notion that retirees live frugally in the early years of their retirement out of fear of running out of savings, only to look back once they reach their later years and feel a sense of regret from being overly frugal or conservative.
That feeling of uncertainty breeds fear – a fear of spending that can hinder a retiree’s standard of living and quality of life.
As advisers, helping clients outlive their money is no longer the benchmark of success. The goal now is to build strategies that ensure clients can enjoy their retirement years – not just to tread with caution and constraint.
Annuitising a portion of your clients’ retirement savings can enhance their lifestyle and restore confidence in spending. It complements account-based pensions and other income sources, such as the Age Pension, allowing these to be used more strategically. This approach can also simplify budgeting and reduce the stress of sequencing risk. Certain lifetime income stream products can also allow retirees to receive higher income in the early years of retirement, when they can enjoy it most.
With the right mix of income sources, clients can tailor their spending around the life they want to live – not the income they’re scared to spend.
Legacy
Leaving a legacy is one of the most emotional goals a person will work towards
A holistic retirement also means planning not just for today, but for the future. Thinking about your client’s legacy plan as part of their retirement planning ensures that their retirement is not only fulfilling but meaningful.
One unexpected, and slightly unfamiliar, beneficiary payout tool that helps challenge this uncertainty also comes in the form of the investment-linked lifetime income stream.
Interestingly, our technical team have recently seen a surprising uptake from financial advisers thinking outside the box – using lifetime incomes streams to provide for loved ones by electing a beneficiary or reversionary annuitant to receive a lifelong income after the client is gone.
Ultimately, the annuity empowers the recipient and leaves the investor free to enjoy their final chapters knowing that their loved ones will be looked after once they pass.
Lifetime income streams empower holistic advice
A well-designed retirement strategy doesn’t rely on a single product or account type. It’s built on a combination of tools, each playing a role in addressing specific risks and goals.
Lifetime incomes streams are one tool that can support all three pillars of holistic retirement planning: Longevity, Lifestyle and Legacy. By providing a regular income, guaranteed for life, clients can have the confidence to spend and enjoy retirement, their way.
Key benefits of an investment-linked lifetime income stream include:
- Income guaranteed for life – confidence of an income guaranteed for life backed by one of the world’s largest reinsurers.
- Annual income reset – income payments that adjust annually, based on investment performance.
- Switch at any time – flexibility to adapt your clients’ investment strategy as their circumstances evolve and switch investment options at any time.3
- Gain access to more income sources – for many couple clients with an estimated average of $800,000 – $1,100,000 in assets, the preferential Age Pension asset test reduction may make annuitisation a powerful tool for balancing security, growth, and efficiency.
To learn more about Generation Life’s LifeIncome, speak to our technical team to explore how it can complement your clients’ retirement portfolios or model different case scenarios here.
Sources:
1 Based on ABS: Retirement and Retirement Intentions 2020-21 and ABS: Life expectancy 2020-2022
2 Vanguard’s 2024 How Australia Retires report, Vanguard Australia FAS June 2024, accessed on 19 May 2025
3 Brief exclusion period applies – refer to the Product Disclosure Statement
Disclaimer: Generation Life Limited (Generation Life) AFSL 225408 ABN 68 092 843 902 is the product issuer. This communication is general in nature and does not consider the investment objectives, financial situation or needs of any person, and is not intended to constitute personal financial advice. The product’s Product Disclosure Statement (PDS) and Target Market Determination are available at www.genlife.com.au and should be considered in deciding whether to acquire, hold or dispose of the product. Investments carry risk. Professional financial advice is recommended. Generation Life excludes, to the maximum extent permitted by law, any liability (including negligence) that might arise from this information or any reliance on it. Generation Life does not make any guarantee or representation as to any particular level of investment returns. Past performance is not an indication of future performance. Other than in relation to Generation Life’s product, factual information only is provided and is not intended to imply any recommendation or opinion about superannuation products or superannuation investment.
