Why Longevity Risk is vital for Retirees

Financial Planner

By Erryn Langley

Longevity risk refers to the potential financial risk arising from individuals living longer than expected. Longevity risk can impact individuals who have not adequately planned for retirement and find themselves living longer than expected without sufficient savings or income. Mitigating longevity risk typically involves taking steps to accurately forecast life expectancy and adjusting financial planning accordingly.

A startling analysis by the Australian Taxation Office (ATO) conveyed to the Government as part of a key consultation around the objective of superannuation pointed out just how many people are outliving their superannuation balances.

The study found that around 35% of those aged over 75 and 58% aged between 65-74 (2019-20) have superannuation.

Where death benefits are concerned, the HILDA data showed that 80 per cent of people aged 60 and over, who died between 2014 to 2018, had no super in the period up to four years before their death. For those aged 80 and over, 90% had no super in the four-year period before their death.

The Household, Income and Labour Dynamics in Australia (HILDA) Survey is a household-based panel study that collects valuable information about economic and personal well-being, labour market dynamics and family life.

(Source: https://melbourneinstitute. unimelb.edu.au/hilda)

The above data shows that most retirees do not have any superannuation monies left at time of death and therefore it is arguable that introducing a $3m concessional cap on superannuation is not something the government needs to introduce in the May budget.

The Government’s argument is that many retirees do not use their superannuation funds in retirement and they should reduce the tax concessions on superannuation balances over $3 million.

Retirees should seek professional advice incorporating longevity risk to ensure they have sufficient retirement funds in place to see them through to life expectancy.

Erryn Langley

1300 557 144 | erryn@findwealth.com.au www.findwealth.com.au

Financial Planning is offered via Find Wealth Pty Ltd ACN 140 585 075 t/a Find Wealth. Find Wealth is a Corporate Authorised Representative (No 468091) of AllianceWealthPtyLtdABN93161647007(AFSLNo.449221).PartoftheCentrepoint Alliance group https://www.centrepointalliance.com.au/

Erryn Langley is Authorised representative (No.1269525) of Alliance Wealth Pty Ltd.

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By Dr. Joanna Strybosch

Breast milk is known to be the most nutritious and complete food for infants. It provides all the essential nutrients required for a baby's growth and development, and it also contains antibodies that help protect babies from infections and illnesses. However, in some cases, babies may have difficulty swallowing breast milk due to various medical conditions or developmental delays. In such cases, thickening breast milk with a thickener can be beneficial.

A thickener is a substance that is added to breast milk to increase its viscosity, making it easier for infants to swallow. It is commonly used for infants with reflux or swallowing difficulties, such as premature infants, those with neurological impairments, or those with cleft palate or other structural abnormalities.

Thickening breast milk can also help reduce the risk of aspiration, a condition in which liquids or food are inhaled into the lungs instead of going down the esophagus and into the stomach. Aspiration can lead to serious respiratory problems, such as pneumonia or lung infections. Thickened breast milk can also help reduce regurgitation and spitting up, which are common in infants with reflux.

There are different types of thickeners that can be used in breast milk, including rice cereal, oatmeal, and commercial thickeners. Rice cereal and oatmeal are natural thickeners that can be added to breast milk, but they may alter the taste and nutritional composition of breast milk. Commercial thickeners, on the other hand, are specially designed for infants and are often made with rice starch or other foodgrade thickeners that do not affect the taste or nutritional value of breast milk.

Thickening breast milk can be done by adding the thickener to the breast milk using a bottle or a syringe. The mixture should be stirred or shaken well to ensure even distribution of the thickener. It is important to note that thickened breast milk may require a larger nipple or a specialized feeding system to ensure that the infant can swallow the milk easily.

Before using a thickener in breast milk, it is important to consult with a lactation or healthcare provider to determine the appropriate type and amount of