Superannuation lifecycle modelling from a household perspective

Typical products and modelling is performed from an individuals perspective. However, many individuals are part of a household (couples) and the traditional single person view both in the pre-retirement and the post-retirement space fails to provide optimal outcomes for these individuals. Clearly when there are two individuals in a household there are interaction effects (correlations) which are not captured by combining the two individuals in a couple. A prime example from Australia is that the age pension available to a couple is less than that available to 2 singles. A similar story is found in the Association of Superannuation Funds of Australia (ASFA) living standards in retirement.