Latest Financial Planning News
Hot Issues
Super growth reducing age pension drawdown
Big four firm outlines new financial year checklist for SMSFs
Asset allocation as you age
Australia - the story goes on.
Consolidate your super and save
Critical documentation steps flagged with switching SMSF loans
Good investment habits versus damaging biases
Control considerations flagged with death benefit pensions for children
Interest rate for SMSF loans set to rise under safe harbour terms
Recession on our mind
What it will take to close the super gap between men and women
Australia - How are we going as 2018-19 ends?
LRBAs, guarantees in need of review after property market falls
Average age for establishing SMSFs sitting at 48.9: Report
ATO updates valuation guidelines for pension reporting
ATO figures show jump in starting balances for SMSFs
Your personal financial register
Australia’s $4bn Super blackhole impacting self-employed most
The proper help can be a benefit - age pension
SMSFs on ATO’s radar in cryptocurrency review
Limited recourse borrowing arrangements - LRBAs
What a financial planner does to help.
Goodbye to ad-hoc portfolios
Wanted: More voluntary super contributions
Australia by the numbers – May Update
Federal Budget 2019 - Overview
How the 2019 Federal Budget affects you
The problem with getting to 53 years of age.
Paying for health care in retirement
Personal super contributions and the 10% test
Articles archive
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 4 of 2014
Articles
A great overview of investing and good Holiday reading.
The final nail in the coffin for LRBAs?
Market Update – November 2014
Online financial tools your family and friends can use.
Overcoming our behavioural barriers to saving
‘Unintended consequences’ threaten SMSF tax reform
Retirement income: every bit counts
ASFA continues to sound warnings on retirement savings
Market Update - October 2014
The little-known rule with huge implications for self-managed super funds
Grappling with the uncertainties of retirement
Change to ATO decision relevant to SMSF in-house assets
Taking a personal perspective on the global super challenge
Some terms defined - Super & Investment
The perils of market-timing and over-confidence
Market Update – 30th September 2014
Hardly a do-it-yourself job
Super insurance: wide coverage, limited understanding
ASIC eyes SMSF loan sign-off
Redesigning retirement incomes policy - from the ground up
ASFA continues to sound warnings on retirement savings

 

The Association of Superannuation Funds of Australia (ASFA) has released its latest Retirement Standard research, showing the rising cost of living continues ...


... to impact retirement savings prospects.



       


 


According to the September quarter Retirement Standard released by ASFA, to live a comfortable lifestyle in retirement single retirees will need to spend $767 more a year than this time last year, and couples will need to spend an additional $1,131.


Association chief executive Pauline Vamos said this rising cost of living shows just how important it is to save as much superannuation as possible.


“When you are no longer relying on a wage or salary, even small increases in the cost of living can hit hard, particularly when non-discretionary items such as food or medicines are affected.


“The best way to shield yourself against increasing costs is to save as much money as you can while you are working. This will give you the financial freedom to live the lifestyle you want in retirement,” she said.


According to ASFA’s recent report, couples wanting to live a 'comfortable' retirement will need to spend $58,326 per year, up 0.3 per cent on the previous quarter. This would require a joint superannuation balance of around $510,000 to achieve this.


Singles seeking a 'comfortable' retirement will now need to spend $42,597 a year, an increase of 0.4 per cent from the previous quarter, and require a super balance of around $430,000.
The report indicated prices rises for fruit, up 14.7 per cent, and property rates and charges, up 6.3 per cent, contributed heavily to the overall cost of living.


Meanwhile, analysis conducted by Towers Watson suggests Australians will need to combine lower spending strategies and the right investment options to ensure their income lasts for an increasingly likely period of 25 years in retirement.


Andrew Boal, managing director for Towers Watson in Australia, said lower levels of spending, particularly in the early years of retirement, must be implemented alongside an appropriate investment strategy to retain flexibility and reduce longevity risk.


“When considering investing for financial success in retirement, there are several factors that come into play, including how much superannuation a saver has available at the start of retirement, their spending plans, the amount of any other savings they have, as well as their risk tolerance and preferences,” he said.


“An individual’s spending strategy, however, is one of the biggest factors that will determine whether or not they will achieve financial success in retirement,” said Mr Boal.


 


Written by Staff Reporter Monday,
24 November 2014
www.smsfadviseronline.com.au


 




27th-November-2014
 

Investorplan is an Authorised Representative of GWM Adviser Services Limited trading as MLC Financial Planning | ABN 28 056 426 932 | an Australian Financial Services Licensee with its Registered Office at 105-153 Miller Street North Sydney NSW 2060
email: ownyourfuture@investorplan.com.au
General Advice Warning | Terms & Conditions | Legal Statement | Privacy Policy |Site by PlannerWeb