The traditional asset based pension is not usually sufficient to provide a total income that keeps pace with inflation, even with the help of the age pension. A real lifetime pension is one way to preserve old age dignity.
Tag Archives | retirement income streams
Transition to Retirement Income Streams are no longer tax-free, but you can still access your super before retirement if you meet certain conditions, and there are strategies to reduce the tax paid.
Defined benefit pensions once meant sitting back and enjoying the guaranteed income flow for life, but their treatment under the new pension rules is a potential minefield.
Nobel laureate Robert Merton wants us to focus on the income that will sustain us in retirement, even Jane Austen understood this. And he has a surprising proposal to help with longevity risk.
A unique feature of SMSFs is the concept of ‘superannuation interests’ which must be monitored to keep track of the taxable components in a super fund. Good records can avoid problems later.
Many factors contribute to a lump sum bias among investors, and it might be one reason why they significantly overestimate how much a lump sum is worth in annual income for life.
Get ready for more pension-related changes: from 1 January 2015 the way account-based income streams (including account-based pensions) are assessed under the income test for Centrelink purposes will be changing.
Less than 15% of Australians will enjoy a ‘comfortable’ standard of retirement with just their super. The age pension doubles the numbers, but there’s an even larger increase if other savings are included.
A reader sent in an excellent question on the merits of lifetime annuities versus long term indexed bonds for post-retirement income. Jeremy Cooper and Elizabeth Moran make the case for each.
Australian research on retirement withdrawal rates challenges the long-accepted ‘4% Rule’ used by many planning professionals when advising self-funded retirees. The optimal rate? Well, let’s start a conversation.
It’s highly likely that the age pension will experience future reforms. A useful financial plan should model a reduction in pensions, rather than making an assumption that it’ll be there when the money runs out.
Understanding aged care accommodation and the cost is an absolute minefield. The aged care rules are changing on 1 July 2014, and many people have four months to make plans before they are hit by higher costs.
We hear about what’s wrong with our superannuation and retirement income systems and over time, exaggeration has crept in. We need to dispel myths and have a clear fact base as the foundation for discussion and policy.
There’s sometimes a gap between lifestyle expectations and retirement savings that can be filled by accessing the underutilised equity in the family home. There are alternatives to reverse mortgages such as shared equity.
The broad range of research areas and techniques used instill confidence that the academic researcher community will contribute significantly to improving superannuation choices and retirement outcomes in future.
Whether a reversionary or non-reversionary pension is better is not straightforward and depends on the circumstances of the case, but it’s an important part of estate planning.