Diligence and frugality can lead to wonderful retirement outcomes, writes Alteris Financial Group senior adviser Jaxon King. But if the journey to retirement is bleak, it could sap the joy out of reaching the destination.
Higher mandatory contributions and increased pension assets helped Australia improve on its 2022 score in Mercer annual index, and move up a spot in the 47-country ranking. Yet the research cited room for improvement.
Australians are retiring much later and with more in their retirement coffers than ever before, according to the ABS, with a confluence of factors behind the trend.
While the need for retirement income solutions is great enough to be mandated in some corners, the local annuity market remains a tough nut to crack. So Generation Life has reached out to advisers and a host of others for input into its product offerings.
The Financial Services Council commissioned the Retirement Income Policy Roadmap to help the superannuation system put greater emphasis on the drawdown phase. Industry leaders say the biggest hurdle is a deeply entrenched fear of running out of money.
Working Australians aren’t getting real when it comes to plausible retirement ages and income levels, according to data from Vanguard, with a new report suggesting expectations get closer to reality as retirement draws near.
Sentiment around retirement prospects is declining across the board in Australia, with millionaires almost as likely as less affluent investors to believe it would take a miracle to retire securely. Recent reports highlight the correlation between the new economic uncertainty and reduced confidence in a comfortable retirement.
Australians should be putting more money into superannuation and diversifying out of property, some say, even as super performance remains a question mark.
Higher rates and the cost of living, on top of global events, have contributed to increased Fear Of Running Out across the country. Yet the level of concern may be relatively unfounded, AMP reports.
The government feels it has adequately dealt with the issue of how financial advisers go about their business. Now it is focused on the advice itself, with retirement incomes the new battleground. Into the fray yesterday (August 23) the Actuaries Institute launched its new policy document, ‘Securing Adequate Retirement Incomes for an Ageing Australia’ Download…