We know that Australians underestimate how long they will live by about five years. More concerning, Australians underestimate the costs of living as they age, generally forgetting about needing extra supportive care in the home or in aged care, writes CRAIG PHILLIPS.

FOR people over age 65 today and a member of a couple, your life expectancy is about 93 years. Having a plan to “outlive your money” and giving you enough retirement savings or investments is critical.

Have you planned for your frailty years?

The concept of running out of funds between your retirement to the end of life is a pretty grim thought but worthy of serious attention while you are young enough to do something about it.

Planning for your frailty years, (e.g living with more than one comorbidity) warrants careful thought about whether your savings will last the distance.

What to do?

Work out how much you think you will spend each year for 25+ years after full-time work stops.

Consider how will you pay for extra care if your or your partner’s health fails.

If you need help, an adviser will calculate the amount of superannuation you will likely need for your retirement – based on your short, medium and long-term goals – and they will help tailor a personalised strategy for growing your nest egg while you’re still working.

There are sensible, simple and widely used solutions to help support other income sources that can improve or enable eligibility for some age pension without the worry about share market volatility.

To learn more, call us on 1300 102233 or book a 15-minute call (at no cost) via our website phillipswp.com.au

Disclaimer: This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Phillips Wealth Partners or your professional adviser. Phillips Wealth Partners Pty Ltd ACN 624858420 is a corporate authorised representative of Insight Investment Services Pty Ltd AFSL 309996.