Aussies in danger of outliving super funds

Article Category: Demographics

By By Karina Barrymore, From: News Limited newspapers, 23 August 2010

SUPERANNUATION pensions are becoming the new "investment frontier" as more Australians switch their super fund over to pension mode.

While all the focus during the past two decades has been on building up super balances and making contributions, attention is now turning to the performance of super pensions.

Often called account-based pensions or allocated pensions, these income-paying funds are what the whole retirement system is about. The investment choices and performance of pension funds have a big impact on retirement lifestyles.

However, there is a growing risk of people outliving their super and of people withdrawing all their money at retirement, leaving them without any ongoing income.