What do many of Australia’s top experts in superannuation and retirement planning think the government should focus its policies on? A long article but with many interesting ideas.
Tag Archives | retirement planning
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.
An SMSF can buy business real property and lease it to a member and the laws and processes are clear. The rent paid is classed as income from the investment rather than a contribution from the member.
In traditional economics, utility theory assumed that investors work off probability-weighted outcomes. Prospect theory can better explain actual investor behaviour and is a better tool for designing retirement plans.
Aged care is a specialist subject, but financial advisers need to have strategies for their clients before it is left to a family member to step in with different views on affordability and what standard of care is needed.
Important retirement planning lessons benefit from actual experience, given that life does not follow a predictable pattern and many people can’t work forever. Planning is vital but so is making adjustments.
A retirement financial plan must consider longevity, health and liabilities, making it far more complicated than the simpler investment strategy in the accumulation phase.
Annuities now come in different structures, overcoming many of the past objections. Despite low interest rates, they have become more popular with senior investors based on cash flow, social security and tax needs.
Retirement isn’t what it used to be, especially for those whose job gave them purpose, pride and self-esteem. After full-time work, strategies are required to stay engaged and energised.
VicSuper decided it was unacceptable for its members to face a potential reduction in income and assets below certain levels, and its approach has evolved to help achieve income security in retirement.
Despite the publicity about long life expectancy, research on Australian retirement highlights a lack of planning, and most people do not determine their own retirement date.
The primary objective of the aged care reforms starting on 1 July 2014 was to create a better system giving older people more choice, more control and easier access to aged care services. There are unintended consequences.
The final of our series on aged care in Australia covers aged care facilities. More than a third of men and half of women who reach 65 are expected at some point to live in aged care. Understanding the recent reforms is key.
In the world of retirement income planning, there are two major opposing schools of thought: probability-based and safety-first. Understanding their distinctions is important in achieving the best outcomes.
A withdrawal and re-contribution strategy involves accessing your super and re-contributing some or all of it back into your SMSF as a non-concessional contribution (i.e. all tax-free).
Everyone is different so you need to design your SMSF for yourself and your dependents. That’s the importance of ‘self’ in self managed super.