Retirees dying with large super balances

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Many Australians are living frugally in retirement only to die with large superannuation balances, new research has revealed.

Research from CSIRO has shown that many retirees are withdrawing only the minimum government mandated amounth from their super, the ABC has reported.

"The vast majority of people don't spend their superannuation recklessly, and if anything perhaps a little bit the opposite," CSIRO behavioural economist Dr Andrew Reeson said.

Reeson said during times of high investment returns or when people die relatively early into retirement, some may die with more money than when they retired.

"It's certainly not uncommon to see superannuation accounts where they're actually growing more quickly than people are spending them," Reeson said.

Reeson said he hoped the research would encourage discourse around other investment products such as annuities, which could provide a guaranteed income.

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