“Mixed” would be a polite word to describe the reception Treasurer Joe Hockey’s Intergenerational Report was met with when it was released last week.

But while commentators dispute the report’s recommendations and motivations, its central premise at least is not being disputed: Australians are living a lot longer.

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One stark fact illustrates this: by 2055 there will be more than 40,000 Australians over the age of 100. That’s an eightfold increase on today’s meagre 5000 centenarians.

A baby born this year, meanwhile, can expect to live well into his or her 90s.

Mr Hockey insists that this is something to celebrate. But the reality is it means many more Australians will be facing a retirement of part-time work and penny-pinching. Unless they prepare.

The current government has sent some very mixed messages about superannuation and retirement. Photo: Getty

So while governments vacillate, what can you do to ensure you will live comfortably in the likely event that you live well into your 90s?

We asked the experts for some tips, and this is what they came up with.

How much you will need

The recently-released retirement standard for older retirees, produced by the Association of Superannuation Funds of Australia (ASFA), reveals that for a single retiree over the age of 85 to live comfortably, he or she will need $37,944.

For a couple of the same age to live comfortably they will need access to $53,194 per year. This is compared to $58,364 for a couple aged above 65.

For a couple to maintain a “modest” lifestyle after 85 they will still need $33,744.

The Age Pension does not even provide enough for a “modest” lifestyle, as ASFA defines it. It only delivers $20,190 a year if you are single, or $30,450 for a couple. So you will need superannuation reserves even for a “modest” lifestyle, let alone a “comfortable” one.

What you will be spending it on

1. Healthcare

While your spending in early retirement is all about ticking off your bucket list, travelling and enjoying not working, Andrew Heaven, director at financial planning practice WealthPartners Financial Solutions, says that the way you spend your money in your 80s and 90s has some important differences.

He says the amount you’ll be laying out for healthcare will be one of your biggest expenses, and often it is the one that people don’t want to think about.

The longer you live, the more you are likely to spend on medication and healthcare. Photo: Shutterstock

“Anecdotally many retirees focus on the so-called active stage of retirement which is post-65 and into their 70s and they don’t believe their expenditure will get higher as they get older,” he said.

“But evidence suggests that entertainment costs go down, but medical costs go up. That’s the bit people don’t plan for.”

2. Home assistance and housing

According to ASFA chief executive Pauline Vamos, older retirees spend more on assistance in the home, which includes cleaning services and meals.

“They also tend to have increased out-of-pocket expenses for major medical procedures and ongoing chemist and other medical expenses. This means policy changes in these areas can have a major impact on older retirees and individuals also need to budget for increased expenditure on these items,” Ms Vamos said.

Despite this, housing costs for older retirees remain similar to what you would pay in 60s and 70s.

“The large majority of retirees in their late 80s or early 90s continue to live in their own home. There are no real grounds for reducing the amount in the standard that is allocated towards housing costs,” ASFA reports.

3. Having fun

Mr Heaven says that it would be foolish to think that entertainment and other enjoyable living costs will plummet in your 80s, particularly as we enjoy a better quality of life due to healthcare advancements.

“Sixty is the new 40 and active phase of retirement is being dragged out. The consequence of that is that you could be retired for a long time, but if you don’t have adequate retirement savings you may reduce the capacity to enjoy your life as you enter the frail stage,” he said.

Take control of your retirement

Don’t underestimate how much you’ll want to spend on entertainment. Photo: Shutterstock

Ms Vamos urges Australians to take their retirement into their own hands.

“Instead of relying on the government to provide for your retirement, people should be taking control of their finances now and focus on building a pool of private savings to fund their post-work years,” she says.

But what is the best way to do this?

Damian Hill, chief executive of REST Industry Super, says that visiting a financial adviser is key to paving the way to a successful retirement.

“Consolidating your superannuation accounts, salary sacrificing and taking an active interest in how your super is invested can also help maximise your retirement returns,” he says.

“And remember that your superannuation has to last you a long time. An investment option that offers a portion in growth assets may be one option for investing super over the longer-term.”

Start early

Mr Heaven says the biggest key is to start early, saying that “time is your friend”.

“Co-fund whatever your employer is putting in, salary sacrifice to get the most out of your pre-tax dollars, focus on self-funding, reduce your expenditure and try not to live in the moment,” he says.

But never fear if you feel that you have missed the boat. Mr Heaven says that there are still levers to pull even if you are in the later stages of your career.

“Consider annuity-style products, look into the Mature Age Worker Tax Offset and even a reverse mortgage on your home,” he says.