Ageing Aussies 'are throwing money away on life insurance'

Ageing Aussies are essentially throwing money away by paying towards costly life insurance cover, it has been claimed.

Experts have suggested that people who take out a policy at the age of 30 or 40 end up paying huge sums once they near retirement age, National Features reports.

This is because most life insurance premiums rise with inflation, so cover that is costing someone $500 in their earlier years could end up setting them back as much as $4,000 by the time they are 60.

Astute Investing director Simon Wotherspoon told the news provider that people who have been keeping their savings accounts topped up may not need such cover at all.

"It's likely the level of life insurance cover needed will reduce over time, as you pay down your debts and increase your retirement savings," he was quoted as saying.

Sadly, the high cost of living means Aussies are finding it harder to build a nest egg and representatives of CPA Australia recently warned that the country is heading towards a "retirement savings disaster".

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