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T he world is constantly changing, and as it does so, life expectancy in Australia continues to rise. The Australian Institute of Health and Welfare (AIHW) recently released a report on the latest trends in death rates and life expectancy in Australia. In this blog summary, we’ll dig deeper into the data from the report to better understand what it means for retirement planning. We’ll explore the average life expectancy for Australians, how it varies between Indigenous and non-Indigenous populations, and what this means for retirement planning. So read on to learn more about the findings from the AIHW report!

Trends in Life Expectancy

Life expectancy in Australia has improved dramatically compared with a century ago, with males now expected to live to the age of 81.3 years and females 85.4 years. This has resulted in a significant increase in the number of years Australians can expect to live after retirement, with those aged 65 in 2019-2021 expecting to live another 20.3–23.0 years respectively.

However, for Aboriginal and Torres Strait Islander peoples born in 2015-2017, life expectancy is much lower at 71.6 years for males and 75.6 years for females – 8.6 years and 7.8 years lower than that of non-Indigenous Australians born in the same period. Nevertheless, the gap between Indigenous and non-Indigenous life expectancy has been narrowing in recent years, albeit slowly.

When it comes to international comparisons, Australians enjoy one of the highest life expectancies in the world. This is a great achievement and something that we should be proud of. However, it also highlights the need for effective financial planning when it comes to retirement, as Australians can now expect to live longer than ever before.

Considerations with Planning for Retirement

It’s important to consider your future health when thinking of retirement planning, as you may live longer than expected. This means that it’s more important than ever to ensure that your financial security lasts throughout your retirement years. A good rule of thumb is to plan for at least 25 years in retirement or about age 90. That way, you can be confident that you’ll have the financial support you need no matter how long you live.

Call to Action

For more information on life expectancy trends, visit the Australian Bureau of Statistics website or consult your financial planner. Planning for retirement doesn’t have to be daunting; with careful planning and preparation, you can enjoy a secure and comfortable retirement.

If you’re looking for more information on how plan for retirement click here to book a quick chat.

References:

Australian Institute of Health and Welfare. (2023, July 11). Deaths in Australia, Life expectancy. https://www.aihw.gov.au/reports/life-expectancy-death/deaths-in-australia/contents/life-expectancy
‌Life tables, 2019 – 2021 | Australian Bureau of Statistics. (2022, August 11). www.abs.gov.au. https://www.abs.gov.au/statistics/people/population/life-tables/latest-release#:~:text=Media%20releases-,Key%20statistics,of%20the%20states%20and%20territories