Retirement savers urged to 'overestimate'

Australians developing savings strategies for their retirements should err on the side of caution, an expert has said.

Andrew Buchan, a financial planner at HLB Mann Judd, urged retirement savers to overestimate their life expectancy and therefore the amount of money they need will need to live comfortably in later life.

Speaking to the Sydney Morning Herald, he also pointed to the need to have "a buffer" against unexpected, financially damaging events such as the global financial crisis, as well as against the obvious possibility of living longer.

Aussies aiming to save for the long-term could choose to compare term deposits in search of the best returns. According to Mr Buchan, consumers should also keep some of their savings in growth investments even after they retire, given that their retirement funds will need to grow in order to offset the impact of inflation and higher prices.

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