Australia is the only OECD country that has a mandated pre-funded accumulation structure without a mandated decumulation structure. As such, much thought has gone into accumulating super, but less into its decumulation. This is one of the key findings of the Centre of Excellence in Population Ageing Research (CEPAR) ... Read more
The financial and health benefits of working into retirement
With each generation, Australians are living longer which is driving a desire, or need, to work for longer to ensure a more comfortable and financially secure retirement. The trend towards semi-retirement has a lot of benefits that extend beyond simply enjoying an ongoing income. While you’re still working, you ... Read more
Gender inequality in retirement income
Most people will have heard of the term ‘gender pay gap’ and be familiar with what that means but fewer will realise that this is a major cause of what’s known as the ‘gender super gap’. The gender super gap directly affects retirement income and while that gap between men and women is narrowing, policymakers have ... Read more
Why financial literacy is vital for a good retirement
It’s a common dilemma which most Australians confront towards the end of their working lives: when should I retire, when should I draw down on super and by how much? Many other countries have a defined pension system but the Australian system with its super guarantee combined with the Age Pension means the ... Read more
Words that matter. What’s a franking credit? What’s dividend imputation. And what’s ‘retiree tax’?
By Peter Martin, Crawford School of Public Policy, Australian National University You’re forgiven for being confused. Newspapers need to economise on words. Television and radio reporters need to economise on seconds. So they use shorthand: words like “dividend imputation”, “franking credits”, and yes, “retiree ... Read more
What are annuities, and will they work for me?
Annuities are relatively simple and secure financial products that provide a guaranteed pay cheque in retirement in return for investing a lump sum for the rest of your life, or for a specified period. Unlike account-based pensions, the returns from annuities are not reliant on movements in investment markets. ... Read more
Understanding your life expectancy
Ever wondered how long you might live, and what the current projections are for Australians? These are natural considerations as you plan for retirement and older age. Common thinking has it that we are living longer, with healthier lifestyles and advances in medical science. After all, knowing how to spend your ... Read more
Super contributions before and after age 65
Q: I have a three-part question. I turn 65 in January 2019 and would like to make a $325,000 contribution by way of off-market share transfers and cash to my SMSF before I turn 65 ($25K deductible super contributions and $300K non-deductible under the bring forward rules). Will I be able to take advantage of the ... Read more
For over-65s: Ten tips when making super contributions
Australians can make voluntary superannuation contributions up to the age of 74 (that is, before you turn 75), and these super contributions can be concessional (before-tax) or non-concessional (after-tax) contributions. If you’re aged 65 or over however, then you must satisfy a work test, if you intend to make super ... Read more
Investment scams: What are they and how do you avoid them?
Scams in the 21st Century There’s no argument that advancing technology has been the one of the biggest game-changers this century. The digital age has revolutionised how we conduct our daily lives. And while technology offers more convenient ways of doing things, it also comes with risk. Cyber scamming - or ... Read more
I’m retired. If I return to work, what happens to my SMSF pension?
Q: My husband turns 60 in January. We have an SMSF and he is going to commence retirement phase. He is essentially retired and only worked 4 hours this financial year. But what if he decides to work again in six months’ time? The account-based pension allows for lump sum withdrawals which is very advantageous and would ... Read more
Turning 65 and super: A Super Guide
Anyone aged 65 or over can access super benefits without retiring or satisfying any other special condition of release. Turning 65 is a condition of release. Unless you’re in a public sector fund, such super benefits will be tax-free when paid on or after the age of 60. For a general summary of the super and ... Read more
Age 65: Accessing your super is a right
Q: I am female and I will be 66 in a few weeks. My personal savings of $60,000 were used to pay for my husband’s funeral expenses, and to repay the balance of my mortgage. I need urgent dental, optical treatment and due to the lack of savings, I have not been able to get this medical treatment for three years. I ... Read more
Grey nomad lifestyle provides a model for living remotely
By Timothy Moore, Monash University Every other year, retired couple Jorg and Jan journey some 5,000 kilometres in their campervan from Port Fairy in southeastern Australia to Broome in the far northwest for a change of lifestyle and scenery. There they catch up with other couples from across the nation, who often ... Read more
Adjusting to retirement: 8 factors that can help
This is an extract from Enjoying Retirement by Michael Longhurst, published by Hachette Australia. Out now. $29.99. Michael Longhurst is a retired psychologist and leading authority in the area of adjustment to retirement. This extract presents findings from a research program that analysed the retirement ... Read more