Retirees spend less than expected in retirement and can have as much as 90% of their wealth remaining when they die, according to Mr John Daley, chief executive of the think tank Grattan Institute.
“What we discover is that, by and large, people aren’t drawing down anything like their savings in retirement, and most super balances grow until the age 75,’’ he said.
He added that people are not drawing down until their mid-70s, according to a report by Investment Magazine. Less wealthy retirees spend down about 5% and wealthy retirees accumulate 3%, he said.
Mr Daley said older Australians have been “relentlessly” told by the financial industry to worry about their future when research shows they are comfortable, happy and unnecessarily frugal in retirement.
“A lot of the discussions in this space assume we’re talking about a policy problem when it’s actually talking about a commercial problem,’’ he said at the 2018 Investment Magazine Post-Retirement Conference, held in Sydney in March.
“Yes, people are worried because we have told them to be worried. We want people to worry less and the answer is (for the financial industry) to stop bombarding them. The message is wrong.”