MetLife shares insights for the 100-year lifespan

Research from MetLife reveals more than half (56%) of the population globally, including 53% of Australians, hope to live over the age of 100¹. Additionally, 58% of people believe that by 2035, it will be commonplace to reach this milestone.

As a result of changing lifespan expectations, customers are shifting their outlook on life stages according to MetLife’s research which surveyed more than 18,000 people across 12 countries including Australia. People now want careers, education and retirement to be reimagined to take into account the expanded life expectancy.

The impact of a 90–100-year lifespan will be felt across business, society and individuals. From education, wealth, and career to leisure and health, old models will no longer be fit for purpose, and already, people are looking for longevity to be considered differently when it comes to policy-making and organisational practices as well as financial services and employment.

MetLife Australia Chief of Staff, Strategy and External Affairs Wendy Tse said, “A different approach to securing financial health is needed and must consider longer-term horizons that support projected life expectancies. Helping members plan ahead of retirement is vital to sustain comfortable lifestyles, coupled with financial advice to ensure the maximisation of retirement outcomes.”

MetLife research² shows that 1 in 2 Australians don’t have a retirement plan, while 7 in 10 aged 40-60 years are concerned about outliving their savings. This reveals a significant gap, with many Australians needing guidance on how to build a sustainable retirement plan and strategies to manage long-term health and financial risks prior to retirement. Financial advisers play a key role in ensuring individuals take the necessary steps now to secure their financial futures, particularly as they face the challenges of potentially living decades in retirement.

Super funds are focussing on the retirement phase for their members with differing strategies and product options.

Retirement is different for everyone, and members need flexible options to support expenses to maintain their chosen lifestyle in retirement. Super funds are in a unique position to support their members with practical solutions like longevity products in partnership with their insurer, and account-based pensions, creating an ecosystem that balances income stability with flexibility and is collectively designed to maximise income, provide access to capital when needed, and manage risk.

Previous research³ indicates that members who are engaged with their super, including insurance, are more loyal to their fund. Ms Tse added, “The time is right to deepen member engagement by offering personalised guidance, flexible retirement product solutions, and educational resources that empower members to take control of the financial health of their future.

“MetLife’s approach to longevity products is to ensure simplicity and flexibility. Investment-linked options add an extra layer of flexibility, allowing members to manage their income and investment strategy throughout retirement while safeguarding against the financial risks of living longer than expected.”

Ms Tse concluded, “This is where the Quality of Advice Review and the introduction of a new class of advisers is critical in helping members during this stage of life. Affordability and accessibility to financial advice is essential to ensuring informed decisions about specific retirement needs and removing the fear of running out of savings.”

For further information on how MetLife can support your members plan for their retirement, please visit our website today.

References

1. metlife-future-insights-report-2023.pdf
2. insights-into-the-growing-need-for-retirement-solutions
3. Insurance Inside Super Report (metlife.com.au)

MetLife Insurance Limited (MetLife), an affiliate of MetLife, Inc., is a specialist provider of life insurance to superannuation trustees, employers and financial advisers in Australia. MetLife has expertise in designing holistic insurance solutions to meet the needs of its customer groups, which includes the award winning 360Health program. MetLife has been providing life insurance products in Australia since 2005. For more information, visit metlife.com.au. 

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Asia, Latin America, Europe and the Middle East. For more information, visit metlife.com.