As pensioners and advisers adapt to the asset test changes, they should not place a different value on a dollar of income and a dollar of accumulated capital to support a retiree’s lifestyle.
Author Archive | Gordon Thompson
There is much disagreement over the ‘safe’ withdrawal rate in retirement to ensure savings do not run out. Unfortunately, drawing only 2.5% from a nestegg will leave many retirees living a life on unnecessary austerity.
The method chosen to determine the amount of pension payments from superannuation should influence the allocation towards the volatility of growth or income-based assets.