Consequences of living longer

The financial effects of longevity on retirement funding have been explored at an annual Australian Colloquium of Superannuation Researchers hosted by UNSW.

Internationally renowned finance experts, representatives from Treasury and the Federal Department for Health and Ageing, as well as speakers from the finance sector addressed the colloquium, conducted by UNSW's Centre for Pensions and Superannuation.

Public sector pension reform, income optimising for retirement, and the tax implications for an ageing population will also be discussed at the colloquium.

Due to a falling birth rate and the population living longer, Australia will see a rise in the number of older and aged persons over the next few decades.

Colloquium convenor Associate Professor John Evans said the financial consequences and implications of increased longevity were significant.

"There are particular challenges that need to be addressed, such as the adequacy and sustainability of pensions and retirement incomes; financing of health and other aged care services; the development of new financial products which address increased longevity, along with the role technology plays in this.

"Longevity impacts are a major issue for the future, as the longer people live, the more capital they need.

"Given the approach of making individuals responsible for their retirement funding, the more risk there is for individuals given the unknowns of medical costs and the government provisions of a safety net through the Age Pension," Professor Evans said.