Lifetime annuities provide a simple solution for retirees seeking income for as long as they live, however historically Australian retirees have not been large users of annuities. Interestingly though this is not a sign that people don’t want a guaranteed income for life.
Surveys of what retirees want, that don’t mention annuities by name, repeatedly find that income for life is often strongly preferred. Sixty-seven per cent of respondents in a survey of over 3,000 super fund members, thought that such a product would be appealing.
The problem might be less about the appeal of the annuity itself and more to do with some common misunderstandings about annuities.
This article considers the most common myths and highlight the 2020s reality for Australian retirees who want guaranteed income in retirement.
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