When Do You Plan On Dying?

When do you plan on dying? What kind of question is to ask? I know that this could be a pretty morbid topic and most of the time nobody can really know but it highlights how you need to have a plan for your plan and a plan for when you’re gone. 

In Australia today, the average life expectancy is 83 years and this is likely to increase dramatically with innovation in medical technology. 

Some examples being worked on today are 3D printing of organs, stem cell cures for Diabetes and neurodegenerative diseases earlier with machine learning.

Depending on when you retire (check out my post of retirement here), that could be a very long time for your super to last. The days of final salary pensions are long gone my friend. 

The last thing you want is to be running out of money when you’re getting older and the results could be more impactful. 

How are you planning on generating an income stream for life? For some people, the path is increasing their knowledge on investing. For those interested, I offer a series of courses  which take absolute beginners and turn them into investor pros. If this sounds like something for you, get in touch for your free 15 minute consultation. For others, they may wish to convert part of their super into an annuity.  

What is an annuity I hear you ask? Using MoneySmarts definition - “An annuity, also known as a lifetime or fixed-term pension, gives you a guaranteed income for a number of years. Or the rest of your life.” 

This involves taking some or all of your super and handing that over to an insurance company in exchange for a fixed income either for a number of years or for life, depending on what you choose. The income received will be the same amount, regardless of what the stock market is doing. If this sounds more attractive than the rollercoaster of the stock market then it’s a topic you should do some more research into. There are many types of annuities out there with different options so you may need support from a Financial Advisor to ensure the right product is for you. 

So take a moment today to start thinking about how you’re going to ensure you have enough savings for that long ahead of you.

Disclaimer

None of  the content is intended to provide you with personal financial advice. This piece is intended to be for educational or entertainment purposes only. You may wish to seek independent financial advice from a professional advisor for advice pertaining to your specific situation.