Common ‘myth-conceptions’ about retirement income

In many ways, retirement is a step into the unknown. After decades of working and accumulating savings, it can be difficult making the shift to drawing on those savings to support your retirement lifestyle.

So it’s not surprising that misconceptions and misunderstandings about our retirement income system are common.

This was one of the key findings of the government’s Retirement Income Review, which canvassed the views of a wide range of Australians expressed via surveys, submissions and the media.

Below is a summary of some common retirement myths identified by the Review and others, and why they don’t stack up.

Adequacy of retirement income and estimates of retirement expenditure needs

Myth #1: You need to preserve your assets in case you get sick or need aged care, and Myth #2: You will need to pay for most of your health costs in retirement.

Health and aged care are heavily subsidised in Australia, so every retiree who needs care will receive it.