Archive | Retirement

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Sequencing risk can hit retirement outcomes

Some retirement portfolios may never recover from a big hit to the balance just when contributions have stopped and withdrawals have commenced. The possible sequence of returns is another risk to focus on.

collective income schemes

Schemes designed to deal with longevity risk

With the availability of large pools of retirees, the law of large numbers will start to see a predictable distribution of lifespans around the mean, allowing for longevity risk products. An important development.

terminal illness

How to access terminal illness benefits

Most people think of super access in terms of age, but when life deals a cruel blow, the rules allow members early access subject to certain conditions. It’s a valuable safety net.

self-funded retirees

Super is worsening for self-funded retirees

Increases in longevity, and the numerous changes to the super system since inception, have mostly worked against self-funded retirees. Meanwhile, politicians and bureaucrats enjoy far superior retirement benefits.

retirement frailty years

The reality of three phases of retirement

Retirement is not a steady state of more time for holidays and family. Planning must allow for the onset of part-disability and disability, and costs can rise significantly in the final ‘frailty’ years.

zero tax

Zero tax rate on pensions is right and fair

Claims that zero tax rates on superannuation pension funds are a rort are misinformed because they ignore the taxes paid to put money into super, and the social contract that super was designed for.

retirement concerns

Is this your biggest retirement worry?

The financial concerns of those in or close to retirement are focussed on health and housing. Lower interest rates, rising healthcare costs and lifespan uncertainty legitimately compound those concerns.

comfortable retirement

How much is really needed in retirement?

Retirement planning is often based on average expected returns, average expected cost of living and average life expectancy. But all of these variables can vary adversely, and we need more on the range of outcomes.

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