TY - JOUR
T1 - The retirement puzzle
AU - Ruthbah, Ummul
N1 - Publisher Copyright:
© The Author(s) 2021.
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2022
Y1 - 2022
N2 - 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
AB - 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
KW - Comfortable retirement
KW - longevity
KW - means-tested age pension
KW - superannuation
UR - http://www.scopus.com/inward/record.url?scp=85106603986&partnerID=8YFLogxK
U2 - 10.1177/03128962211014577
DO - 10.1177/03128962211014577
M3 - Article
AN - SCOPUS:85106603986
SN - 0312-8962
VL - 47
SP - 342
EP - 367
JO - Australian Journal of Management
JF - Australian Journal of Management
IS - 2
ER -