How much money do I need in retirement? A question that would be simple to answer if not for one inconvenient nuance of retirement planning – the fact that nobody knows how long it will last. This lack of insight into our own mortality has led to the widespread adoption of the 4% rule.
Read MorePractical tips to close a retirement savings gap between genders that is larger than we think. The media has recently been filled with commentary on the gender pay gap. We constantly hear about differences in retirement savings between men and women. The solution seems clear - close the pay and retirement savings gap and we will reach equality.
Read MoreSavvy investors can use a Transition-to-Retirement account to increase retirement savings and save on tax.
An analysis of retirement withdrawal rates is not the most exciting topic in the world. What is exciting is a retirement filled with spending on trips, meals and socialising with family and friends. And unfortunately, the amount of money that can be safely withdrawn from super each year will dictate if your retirement means sipping champagne in Paris or eating canned beans in your child’s spare bedroom.
Read MoreIn our modern world, advice firms are continually evolving their value proposition and service offer to meet the needs and wants of their clients. Over the last three years, portfolios have changed, their use of digital technology and their expectations from their financial adviser has evolved.
Read MoreFor those who have saved a healthy nest egg, retirement is a dream destination, one where you have loads of free time and zero responsibility.
Read MoreOne of the most significant features of account-based pensions is the ability to commute the pension, whether in full (also known as a 100% commutation) or in part (a partial commutation ie. less than 100%).
When planning for retirement the first step is to provide a cash reserve and the second step is to establish a secure income. A secure and stable income will provide you with peace of mind that you are able to cover your everyday living expenses.
Read MorePension payments in super after the age of 60 are tax free and anyone over 65 can switch their super into a pension account even if they do not change their employment. Why do so many continue paying 15% tax?
Read MoreGenerally pensions cannot be commenced if the initial pension account balance is greater than $1.9m (the current transfer balance cap which applies from 1 July 2023).
Superannuation can be used to start an account based pension once a person retires (or meets another condition of release). This allows income to be received as a series of regular payments (usually monthly, quarterly, half yearly, or yearly).
Read MoreThe cost of retirement has hit a record high, with couples needing more than $70,000 a year to fund a comfortable retirement, and $50,000 for singles, according to ASFA.
Read MoreA very interesting (and surprising) Private Binding Ruling has been recently released by the ATO (reference details at the foot of the article). In short, because a trustee (of a self-managed superannuation fund) took over 28 weeks to pay a commutation lump sum, the benefit was considered to be a death benefit and not a member benefit.
Read MoreOften individuals and couples, once they are retired and receiving the age pension, will want to downsize their home to more suitable accommodation. If the individual or couple own their own home, the home is excluded from the age pension assets test, irrespective of the value of the home. But what happens to their age pension if they sell their current home to buy another home?
Read MoreA Non-concessional Contribution (NCC) is a personal contribution made to a superannuation fund by an individual for their own benefit or for the benefit of their spouse or children under 18 years of age.
Read MoreNow that the end of the 2022/23 financial year is almost here, superannuation members who are currently receiving pensions need to take certain actions.
Read MoreThe Australian Prudential Regulation Authority expects that by now every superannuation fund in Australia should have formulated and published a retirement income strategy. The overarching themes of personalisation and the need for advice shine through some of the more progressive funds’ strategies. Why? No single Australian’s retirement is the same—the notion of the “average” client simply doesn’t exist.
Read MoreA retiree views the world very differently from someone still in the workforce, and a good financial planner understands how their view of the world changes over time.
Read MoreFor many people, superannuation will be the single largest asset they will ever accumulate, not including their family home. Even so, there is understandable fear and trepidation among individuals as they near retirement about how long their savings will last, and whether they will be able to live the lifestyle they desire?
Many approach retirement feeling ill-prepared, and this is where good advice can provide great peace of mind.
Read MoreLearn about Listed Investment Companies (LIC’s) and how they offer diversification benefits and reduced costs for your investment portfolio.
As long-term investors, we seek proven, dividend yielding stocks with high liquidity, and LIC’s make a strong case for use as reliable income producers for SMSF’s and retirement portfolios.
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