MetLife urges for strategy “rethink” to achieve comfort in retirement

Life insurer, MetLife Australia, has called for the industry to “rethink” retirement planning strategies, as surging costs see confidence in savings plummet.

This comes in the wake of the latest Association of Superannuation Funds of Australia (ASFA) Retirement Standard data that indicated couples aged 65 to 84 years now require $73,077 annually to enjoy a comfortable retirement, with singles now at $51,805. The standard has seen a 1.3 per cent increase over the last 12 months, with ASFA now estimating a superannuation balance of $690,000 for couples and $595,00 for singles is needed at the retirement age of 67.

MetLife’s own research released in 2024 also echoed these sentiments, with 70 per cent of those aged 40 to 60 years old concerned they will outlive their retirement savings and 50 per cent confirming they do not even have a retirement plan.

“Australians are living longer, which means that people’s retirement savings need to stretch further. Our retirement income product helps deliver predictable income over a lifetime – offering peace of mind in an uncertain economy,” MetLife’s Chief Insurance Officer, Meray El-Khoury, said.

The data from ASFA also shed light on the consequences of the gender superannuation gap once women reach retirement age, with lower average wages and career breaks for childrearing ensuring women collect on average 20 per cent less in superannuation than men. This often means women are left closer to the ‘modest lifestyle’ retirement budget of $32,897 per year.

El-Khoury also encouraged members to leverage several strategies to grow their superannuation balances, with traditional options available, such as compounding interest and investment and asset allocation; as well as non-traditional options, including longevity products.

“Tools like the MoneySmart calculator and financial advice through super funds can empower members to take action before it is too late,” she said.

“We’re working closely with funds to offer tailored retirement solutions that provide the peace of mind that help members retire with clarity and confidence.”