According to the latest statistics available from the Australian Bureau of Statistics*, a 65 year old Australian could on average expect to live until age 84.6 (male) or age 87.3 (female). In a retirement context, that’s an expected 19.6 years (male) and/or 22.3 years (female) that needs to be appropriately planned for as a single or couple.
However, it’s important to note that there are many factors, such as the ones listed above and how they relate specifically to an individual, which could see someone live above (or below) these quoted average life expectancies.
For many of us, we often imagine retirement as that chapter in our life when we can finally kick back and enjoy the fruits of our labours, which we worked so hard to accumulate. For example, we plan to make the most of the time and resources that we now have at our disposal by doing and seeing the things that may not have been possible earlier in life for one reason or another (e.g. due to personal and/or work-related constraints).
Whilst retirement is something to look forward to (and be enjoyed), it’s important to understand that there will come a time in your retirement years when your age will start to get the better of your mental and/or physical health, which will have a range of implications as seen above.
By understanding this, you will have a more informed expectation of what retirement may actually entail for you and be able to appropriately plan for it, especially in several relevant areas of your personal finances.