Retirees bullied and betrayed, Women and super, Financial advice, New Age Pension rates, Insurance in super
Highlights of the March 2019 edition of the SuperGuide Premium newsletter include:
- BULLYING AND BETRAYAL OF RETIREES: As we prepare for the forthcoming Federal Election, Sean Corbett reminds us how Australian retirees have been repeatedly let down and demonised by politicians on all sides.
- FINANCIAL ADVICE: The Royal Commission uncovered advice horror stories and made strong recommendations about how the industry must improve. We look at the risks and benefits of financial advice, how to find a suitable adviser, how much financial advice costs, and how you can find free or low-cost advice. One of Kenneth Hayne’s recommendations was that non-independent advisers need to disclose their lack of independence. Daniel Brammall helps us to identify what makes a financial adviser independent, and we list 129 independent advisers who operate in Australia.
- AGE PENSION: The Age Pension rates increase on 20th March. Find out the latest rates and thresholds, or use our calculator to find out how much you could be eligible for. Age Pension expert Regan Welburn also provides handy case studies to illustrate how the Age Pension is assessed, and a step-by-step guide to applying for the Age Pension, avoiding the common mistakes, and getting it right the first time.
- INSURANCE AND SUPER: Have you considered your insurance needs lately? In a suite of articles we look at how insurance operates inside super, and investigate life insurance, TPD insurance and income protection insurance in depth. Learn about the pros, the cons and the strategies you can consider.
- WOMEN AND SUPER: Women have the odds stacked against them when saving for retirement. They earn less, have more time out of the workforce, and live longer. However women do have Barbara Drury on their side, with some super strategies for women at different stages of life.
- SMSF LUMP SUM WITHDRAWAL RULES: Penny Pryor details the rules and tax implications for withdrawing lump sums from SMSFs, provides case studies to illustrate how the rules work, and reminds us about what you should consider if you have started a pension or are claiming the Age Pension.
- INDUSTRY FUNDS VS RETAIL FUNDS: The pain from Hayne continues for retail funds. Recent statistics show they now lag behind industry funds in assets under management, customer satisfaction and investment performance.
- LATEST SUPER RETURNS: 2019 has had a strong start with median growth fund gains of 2.7% in February and 2.5% in January. Learn more in our performance articles at the bottom of the email.
2019 FEDERAL BUDGET SPECIAL
This year the Federal Budget will be announced a month earlier – on Tuesday 2nd April. We will provide insights into the announcements affecting super, tax and retirement planning. Watch out for a Budget special newsletter early on April 3rd.
Many of today’s retirees are feeling betrayed. In 1992, Australians entered into an agreement. They agreed with a plan made by the politicians of the day that, in order to reduce the burden of the Age Pension on future generations of working taxpayers, everyone would save super for their own retirement. Read more
With the odds stacked against them, what can a woman do to improve her retirement prospects? Quite a bit as it turns out. Here are some suggested strategies for women at different ages and stages of life. Read more
Is your super fund a star performer or a lemon? Follow our 6-step guide to assess if your super fund is right for you. Read more
APRA statistics released this week show retail funds have lost nearly $23 billion in value since December 2017, while over the same period industry funds grew by nearly $40 billion. This represents a change in value of assets of -6% for retail funds and +4% for industry funds. Read more
As you reach retirement, you will be considering what you want to do with your superannuation in your self-managed superannuation fund (SMSF). Basically, your fund can pay benefits in the form of a lump sum, an income stream, or a combination of both. Read more
It is amazing how many times I have been told when taking instructions on a new or updated will that “my affairs are quite simple”. That statement may be true of course but simple is a relative term. As an example, if you want to achieve the more common goals of protection of assets and reducing tax, and who doesn’t, then most likely a TTW will be advantageous for you. Read more
So, you’ve decided to see a financial adviser. With 28,279 financial advisers and planners currently listed on ASIC’s Financial Advisers Register, you are not short of choice. Although too much choice can be daunting, especially if you’ve never consulted a professional adviser before. Read more
Financial advisers are supposed to act in the best interests of their clients. That’s not a vain hope or fluffy belief, it’s enshrined in law. But confidence in financial advisers has been rocked lately by a series of financial scandals and instances of serious misconduct unearthed by the Hayne Royal Commission. Most notably, fees for no service and advice that left clients worse off. Read more
How much you should pay for financial advice depends on a range of factors, including the type and extent of advice that you receive. Read more
There is excellent advice available that is low-cost, and even no-cost. The government’s Financial Information Service and your super fund are a great place to start. Read more
Just because a financial planner’s business card doesn’t display the logo of a bank or insurance company doesn’t mean he or she is independent. Read more
This article is updated regularly when new financial advisers join the independence club. A financial adviser does not have to be a member of the IFAAA to join the SuperGuide list, provided they can declare that they satisfy the requirements of being an independent adviser. Read more
This article explains how the Age Pension works, and includes the latest Age Pension rates, applicable since 20th March 2019 for residents, non-residents, and the transitional Age Pension. Read more
Our handy calculator is updated with the latest rates and helps you estimate what Age Pension you may be eligible for. Read more
The assets test thresholds also increase on 20th March. Find out how the test works, what assets count for the test and what the limits are for a full or part Age Pension. Read more
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”. Find out how the income test works, what income is included, and what the thresholds are from 20th March for a full or part Age Pension.Read more
In this article we detail how the Age Pension is assessed, how the income and assets tests work, and illustrate with case studies for a Single and a Couple. Read more
When you apply for the Age Pension claim you’re joining a long queue, and making mistakes can cause a lot of delays and frustration. This article is a step by step guide to claiming the Age Pension and getting it right the first time. Read more
Superannuation can affect the Age Pension in different ways, depending on whether you or your partner have reached your pension eligibility age, and what you do with any super payments you access. Read more
INSURANCE AND SUPER
In this article we cover the major considerations for having personal insurance coverage inside your super fund. We’ll explore pros and cons, types of coverage, financial decisions, regulatory and industry findings, and suggest potential strategies that may suit you. Read more
Find out how life insurance inside super works, ideal cover, premiums, claims and taxes, and get the thoughts of an independent financial adviser on how life insurance in super can be effective for estate planning. Read more
Total and permanent disablement (TPD) insurance pays a lump sum if you become permanently disabled and are unable to work again. It basically insures you against the risk that your ability to accumulate super (retirement income) is cut unexpectedly short. Read more
This article addresses how income protection insurance works inside super, its effectiveness, key trends, claims and how you can establish the right cover for you. Read more
LATEST SUPER RETURNS
In this article you can learn the monthly performance for super funds over 5 investment options going back to July 2015. Read more
If you haven’t chosen your own super fund, or you haven’t actively selected an investment option, then you need to be aware that your super money may not be invested within a traditional default growth investment option (which has at least 60% of your super money invested in growth assets such as shares and listed property). Read more