S U P E R T H A T L A S T S A L I F E T I M E .

H E A L T H W E A L T H C A R E E R

M E R C E R L I F E T I M E P L U S ®

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C O N G R A T U L A T I O N S O N Y O U R R E T I R E M E N TRetirement can be both an exciting and daunting time for many people. Knowing you’ll have all the time to do the things you’ve wanted to do, like travelling, spending time in the garden, or hitting the golf course, funding your active years in retirement is often front of mind. It is certainly important to plan for the short to medium term, but with today’s increasing life expectancies, it is also crucial to plan for the long term. Did you know that, like you’ve wanted to do, many people retiring today will live beyond 90?

L I V I N G L O N G E R M E A N S W E H A V E A G R E A T E R C H A N C E O F O U T L I V I N G O U R S U P E RAdvances in medicine and a trend towards healthier lifestyles mean we’re living longer than ever before. Once you retire, you could realistically expect to live another 20 to 30 years. This means you’ll need vastly more retirement assets than previous generations. There is a very real chance that you’ll outlive your finances.

On average, people will outlive their super by more than 5 years. 1 in 4 will outlive his or her super by 10 years.Source: Expectations vs Reality of Retirement, Mercer, July 2014.

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2 out of 3 retirees live frugally to make their money last longer in retirement.Source: Expectations vs Reality of Retirement, Mercer, July 2014.

A S A S I N G L EA T 6 5 Y O U H A V E :

5 0 % C H A N C E O F L I V I N G T O

5 0 % C H A N C E O F L I V I N G T O

2 5 % C H A N C E O F L I V I N G T O

2 5 % C H A N C E O F L I V I N G T O

A S A M E M B E R O F A C O U P L EA T 6 5 Y O U H A V E :

A G E

91A G E

88

A G E

93

A G E

95A G E

93

A G E

97

Source: Mercer Public Sector Pensioner Mortality Investigation data with future mortality improvements, 2009–20012

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M A N Y P E O P L E A L S O U N D E R E S T I M A T E H O W M U C H M O N E Y T H E Y W I L L N E E D I N T H E I R L A T E R Y E A R SMany people think they will be “living more simply” when they are in their 80s and 90s, without thinking much about what that really means. You may not be taking overseas holidays, dining out regularly, or even using a car, but what about the costs of aged care or covering out-of-pocket medical expenses?

“ If I outlive my savings, will the age pension be enough?”

In your later years, your expenses may fall — but by how much? It may surprise you to know they may only fall by between $1,000 and $5,000 per annum.* This is because health care costs and expenses for assistance with daily living will take the place of lifestyle expenses in your more active years, which means you will likely need more than the age pension in your later years to cover these expenses.

* Source: “Spending patterns of older retirees: New ASFA Retirement Standard,” Ross Clare, Director of Research, Association of Superannuation Funds of Australia, September quarter 2014

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Y O U R C O S T S I N R E T I R E M E N T W I L L C H A N G E A S Y O U A G E

Costs that will go down:

• Holidays.

• Dining out.

• Entertainment.

• Car expenses.

Costs that will go up:

• Medical and pharmaceutical out-of-pocket expenses.

• Specialised in-home care.

• Ongoing residential care fees.

• Mobility assistance modifications (railings, ramps, etc).

• Home maintenance services (cleaning, gardening, etc).

* Source: Caring for older Australians, Productivity Commission, 2011

D I D Y O U K N O W ?The lifetime risk of requiring aged care at age 85 is 80% for females and 62% for males.*

The need for assistance can occur quickly and without warning. You could have an accident or suffer a sudden medical condition, or you could lose a spouse, which would render you unable to take care of yourself.

Retirees are increasingly expected to fund themselves, and so your super is going to have to cover a lot of these costs. More super means more freedom to choose assistance that suits your priorities and expectations for quality of life.

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T H E G O O D N E W S I S T H A T T H E R E I S S O M E T H I N G Y O U C A N D O A B O U T I TMercer has recently launched a new investment option that, when selected as part of your account-based pension, will help your super go the distance — giving you security and options when you need them most.

I N T R O D U C I N G M E R C E R L I F E T I M E P L U S ®

Mercer LifetimePlus ® delivers you an income above the age pension for the rest of your life. Put simply, it is an investment option within your account-based pension and gives the peace of mind that your income can continue at a comfortable level throughout your life.

Most of us would like to live independently, facing our twilight years with a sense of control, rather than worry. If you think it’s all doom and gloom, think again.

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M E R C E R L I F E T I M E P L U S A L L O W S Y O U T O . . .

Your financial adviser can tell you more about how Mercer LifetimePlus could work for you and your retirement.

Protect yourself from outliving your savings in an affordable way.

Plan with confidence to receive an income above the age pension to support your needs as you age.

Control your account-based pension in one place — in your super fund.

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This product is issued by and this communication has been prepared by Mercer Investments (Australia) Limited (MIAL) ABN 66 008 612 397, Australian Financial Services Licence #244385 as the responsible entity of Mercer LifetimePlus (RSE L0003421). For information about this product, please refer to the PDS which is available free of charge by emailing lifetimeplus@mercer.com

Any advice contained in this document is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed, or appropriately authorised financial adviser if you are unsure of what action to take.

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