Life expectancy to historic highs
The ABS released its Deaths data for 2014 in the past week, and despite the slightly ominous title there is some good news: life expectancies have increased to historic highs!
Over the past ten years life expectancy at birth for males improved by 2.2, years and for females life expectancy at birth improved by 1.4 years.
Thus based on the latest mortality rates a boy born in 2012-14 can expect to live until beyond his 80th year, while a girl can expect to live for 84.4 years.
This takes life expectancy in Australia to its highest level on record, while there are only six other countries in the world that can boast a life expectancy above 80 years (those bding: Japan, Italy, Iceland, Sweden, Switzerland, and Israel).
Of course, this happy news also has important implications for pension plans.
The reality is that if you are fortunate enough to survive until the traditional retirement date today, there is every chance that you could be around for several decades beyond your working lifetime.
For that reason, it has become more important than ever that you have a portfolio of investments that can go on working for you (or can be realised/converted into an annuity).