Market volatility a 'serious blow' to retirees

“The current volatility is a reminder of how much risk ordinary people now face not just in saving for retirement but in more and more aspects of their daily lives,” stated Business School economist Mike Rafferty.

Mr Rafferty added that "for people in or near retirement this volatility is a serious blow."

"Even more concerning is the permanent anxiety that episodes like this leaves. It might be time to ask whether shifting life course risks to ordinary people to manage is a very good idea."

Professor Susan Thorp echoed the sentiment of Mr Rafferty, adding that the current state of the market points to the need for "retirement products that will help Australians protect their income from the full force of financial downturns."

"The Murray Inquiry's recommendation that the superannuation industry come up with products to help self-funded retirees manage longevity and investment risk is looking more urgent," Professor Thorp concluded.