Inflation risks and retirement income innovations
Thought Leadership
Inflation in Australia and around the world is hitting new generational highs. While the political debate is whether wages can increase to offset inflation without creating a 1970s-like wage-price spiral, retirees don’t have that luxury. Retirees are no longer earning a wage that can increase with inflation. So they need a different approach to manage it.
A growing number of retirees are looking to generate retirement income over longer periods than prior generations ever needed to. This has prompted financial product innovations to help retirees achieve this. But how well do some of these innovations manage the inflation risks retirees currently face?
