Who you gonna call?
The financial advice industry is in the process of transforming into a profession. It hasn’t been a painless process. Financial planners are leaving the advice industry in droves. Since December 2018, the number of advisers registered with ASIC has almost halved, falling from 28,000 to fewer than 16,000 in less than four years.
Inflation and your retirement
Inflation and your retirement
With the property market cooling, Australians have finally stopped talking about real estate prices. At dinner parties everywhere, there’s a new conversation.
The bad news? The new conversation is about the rising costs of living. It’s understandable. In the year to July 2022, the costs of consumer goods and services rose 7 per cent.
While the media focus has been on the plight of young families with mortgages, rising inflation presents unique challenges and risks to retirees as well. Especially in low growth economic conditions.
But there are things retirees can do to manage inflation risk and make sure their money lasts.
Inheritance tax: Is the tax office a beneficiary of your super?
Officially, it has been 40 years since Australia abolished the formal Inheritance Tax, or death tax. But we think that’s bunkum. There is tax payable on super when you die and leave your money to your adult children.
Fortunately, a rule change that came into effect in July can help. But only if you engage and act.
War in Ukraine: Implications for your retirement
War in Ukraine: Implications for your retirement
Russia’s invasion of Ukraine is first and foremost a human tragedy. The images we’re seeing on the news are just terrible. But if we turn our minds to the economic impact, we can see that there have been immediate consequences. Sure, they’ve been felt most acutely on the other side of the world, particularly in Europe. But there are economic consequences of the war in Ukraine being felt right here in Australia as well.
So, what does it mean for Australian retirees in the short-term and should we be doing anything now to protect ourselves?
Why we all need a Plan B
Over the course of our careers we have met thousands of pre-retirees and retirees. During that time, we have observed changing attitudes to retirement.
Today, most of us are planning on working longer; the average age we plan to retire is now 67. And almost all of us want to transition into retirement, reducing our work hours over time.
But foresight may be vain. According to the Australian Bureau of Statistics “Retirement and Retirement Intentions” research, in reality, the average age at retirement is around 55.
Most of us don’t get to choose the timing of our retirement. It’s forced on us by circumstances and that’s why we all need a plan B.
Finding purpose beyond work
Talk to any super fund and they will say that anyone approaching retirement should boost their super balance, but in our experience, there’s more to a successful retirement than having lots of money saved up in your super account. And there are better ways for a pre-retiree to prepare than to just boost their super.