Lifetime annuities reduce longevity risk

The Institute of Actuaries of Australia said many of today's affluent baby boomers could drop from an income of $35,000 per couple per year in retirement to the $20,000 pension if they outlive their retirement savings. The institute said one in twelve men would live beyond 100 and one in seven women would pass that milestone. Lifetime annuities, which can cater for extended life, traditionally have not been popular with Australians while a relatively new product – reverse mortgages – could suit baby boomers under the right circumstances.