Alex Denham’s article on her father’s aged care experiences was the most popular in the newsletter last week, and we reproduce three personal comments which expand on Alex’s themes.
Tag Archives | pensions
The future of pension and superannuation systems will involve innovation in product design, improvements in regulation, and the use of smarter investment strategies to achieve the long-term goal of funding retirement.
A survey of high net worth people – those who would be adversely affected by a tax on super earnings in pension phase – showed many were willing to accept such a policy, but not without a healthy level of qualification.
There is little written about why insurance came to be included in the superannuation system. It might address the problem of under-insurance but it’s a poor fit with superannuation’s core purpose of funding retirement.
The National Commission of Audit report released yesterday will influence government policies for many years, and it makes some radical suggestions on entitlements and eligibility.
Using interactive graphics, we can model the impact of changing demographics on economic growth for all major countries. Will lower growth become the ‘new normal’ due to an ageing population?
If we expect government policies to deliver implausible growth when a demographic tailwind has become a headwind, we’ll have temporary ‘growth’ with debt-financed consumption, with longer term adverse consequences.
Tapering is the rate at which pensions reduce as other sources of income increase. A change is unlikely to make it onto Joe Hockey’s list of pensions amendments in the upcoming budget.
Retirement often receives bad press, but whether or not you enjoy this life phase usually depends on the choices created. It’s a nuanced and diverse experience and many welcome the sudden freedom.
* Treasurer’s full Media Release on not taxing superannuation pensions over $100,000. Too complex and undeliverable.
Australia has an enormous opportunity to build a world-class decumulation system that gives individuals security and flexibility in retirement, but it’s different from the accumulation phase.
Life annuities is a product with theoretical appeal but it does not gather significant market acceptance. These behavioural reasons need to be addressed before substantial increases in sales occur.
Your age pension entitlement is assessed under the Income Test, and it may be worth re-setting the deductible amount to improve your pension payments if it’s been a while since the last calculation.
The main benefit of a Transition to Retirement (TTR) pension when under age 60 is not the cash flow from the pension, but income earned in the fund on the investments supporting the TTR pension is tax free.