The retirement puzzle

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3 Citations (Scopus)


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

Original languageEnglish
Pages (from-to)342-367
Number of pages26
JournalAustralian Journal of Management
Issue number2
Publication statusPublished - 2022


  • Comfortable retirement
  • longevity
  • means-tested age pension
  • superannuation

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