Archive | Retirement

home equity

Rethinking home equity and retirement funding

Using the value of home equity built up over many years seems an obvious part of retirement planning, but reverse mortgages have been unsuccessful in Australia. Is it time for a fourth pillar of retirement income?

goals-based; Federal Budget

Retirement planning is not just about income

The main focus in retirement planning should be on the entire return from a portfolio, not just the income generated, and this might help some people in managing changes due to Labor’s franking credit proposal.

pension-loans-scheme

The new and improved Pension Loans Scheme

Access to regular payments from the Pension Loan Scheme is now available to any property owner of pension age irrespective of whether they qualify for the pension. It can be a valuable extra planning tool.

Costello

Tax-free super is due to a social contract

The design of superannuation is part of a social contract, and people who do not understand the long-term context are often offended that super funds should be tax-free in retirement. Don’t blame Peter Costello.

PX-climb-2490817__340

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.

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