Australians at risk of 'old age destitution'

Australians may struggle to provide for themselves later in life if the country’s elderly population continues to expand at its current rate, it has been suggested.

Treasury Secretary Ken Henry argued that new private and public provisions may have to be put in place to account for the fact that more people are living longer than they anticipated, the AAP reported.

"One of the risks of older age … is just that you live a bit longer than you expect to live,’’ he told a Committee for Economic Development of Australia luncheon.

"It’s probably not a good thing if you find that you’re living years longer than you expected, with all of those higher costs of healthcare, and you haven’t made provision for that either,’’ added Dr Henry.

Growing fears about insufficient retirement funds could encourage more Australians to compare savings accounts in search of the best nest eggs. In his speech, Dr Henry referred to the federal government’s third Intergenerational Report which predicts that the country’s 65 to 84-year-old population will more than double by 2050.

This article is brought to you by Mozo – Helping you compare savings accountsADNFCR-1761-ID-19891863-ADNFCR