Rising age expectancy is emerging as the latest hot issue for the life insurance and superannuation sectors. And it’s likely to become even more problematic when the Financial Services Reform Act (FSRA) comes into effect on March 11.

According to the Australian Bureau of Statistics, the average Australian now lives to 79.5 years. But with rapid advances in science, ageing experts say that an increasing number of Australians will start living well beyond 100.

Continued advances in medical research will significantly impact on retirement, superannuation, long term investment, risk, mortality tables, inheritances, wills, health care and pensions.

Science and communications expert Joanne Nova told Sunrise Exchange News most life tables don’t allow for medical improvements. “Can you imagine the chaos in financial systems if medical advances start to extend human lives significantly?” she said.

National Insurance Brokers Association Life Committee member David Squire says assessing life insurance and superannuation is “particularly difficult” for brokers because of the amount of time needed to get it right.  “The reality is that brokers can’t afford the time.”

Mr Squire says the FSRA will make this even more difficult because of the increased paperwork required. “Consumers will not be getting the advice of brokers. This is a bad consumer outcome,” he said.

The issue of “When Australians retire, how long should their financial plans run?” will be addressed at the Financial Planning Association’s Queensland conference next month.