Annuitising some super can ensure most of retirees' incomes are guaranteed to last their entire lives

Projected average retirement incomes (x-axis) if some super is annuitised, by sources and retirement balance (y-axis).

Retires at 67, live to 89. Remaining super is an account-based pension drawn at the minimum. Conversion rates are for a fixed-nominal annuity: 7.08% at 4% interest. Includes 0.1% administration/Govt levy; uses the 8th decile of the female IRSAD sub-group mortality rates to account for potential adverse. AGA improvement factors applied to adjust mortality from 2016 to expected 2028 terms (our base year).
Chart: The ConversationSource: Grattan InstituteGet the dataEmbed Download imageCreated with Datawrapper