One in ten Australians chooses only retirement annuity

Almost half of pension fund depositors consider annuity in combination with other financial products for senior citizens. 43% of respondents say the purchase of annuity in combination with a lump sum payout is the most attractive in old age. A lump sum payment can be invested in securities or investment insurance; although most Australians spend this money on vacation and entertainment.

“The record-low annuity payments are pushing people to seek additional income on retirement. And the global coronavirus situation does not herald the stock market stability,” said Craig Phillips, head of international affairs at CoreData Research.

35% of Australians of retirement age said that the main drawback of annuities is a high product cost.

Sources: http://www.actuarialpost.co.uk/article/less-than-one-in-ten-opt-for-annuity-only-retirement-plan-18253.htm

Photos are from open sources.