Retirement Certainty

Boomer years face greater fears

It’s no secret that we are living longer. Certainty in retirement can significantly determine the quality of the life we live.  This presents a critical issue for Australians – will my standard of living expire before I do? There is no simple answer to this question however, great future planning starts with great advice.   

In this page you will find ideas and resources for anyone planning to retire, or providing advice in the retirement space.
 
Did you know?
 
• 900 Australians retire each day and this trend will continue in the medium term.
• 76% of Australians agree a comfortable lifestyle means having enough money to buy and do what they want.
• Yet, 43% of Australians will rely on the age pension in retirement to fund their desired lifestyle.

• Despite the fact that many older Australians expect their super to be their main source of income, only 45 per cent of respondents are somewhat confident or very confident that their super savings will be adequate according to a recent National Seniors study.

 
 
Certainty in retirement is such a critical issue for consumers and creates a significant advice opportunity for advisers. 

 

Changes to the Aged Pension assets test are now law. From 1 January 2017, more than 300,000 Age Pensioners will have their Age Pension entitlements cut, with just under 100,000 of those affected Australians losing all Aged Pension entitlements.   Contact Centrelink to find out how your Age Pension will be affected. If you’d like financial advice, please contact your adviser or find a financial adviser in your local area.

 
56% of Australians are uncertain about their future, concerned they will not be able to maintain their lifestyle in 10 years’ time.  
 
Certainty will come with great financial advice for more Australians.  If you are serious about ensuring your clients don’t outlive their savings, then look no further than our retirement experts, Challenger, MLC and The Retirement Advice Centre.
 

 

 

 

 

 

                

     

 

Helpful resources for advisers to assist consumers:

Australians are living longer lives but the majority of us underestimate the savings we will need to support our lifestyle in retirement; so how do you make your super last as long as your clients do?
 
Imagine outliving your retirement savings by up to 13 years. This could be a reality for half of all Aussies aged between 40-65*.
 
Help your clients answer key questions by accessing these cleaver calculators:

How long will you live?
 
Australians are living longer than ever before; If you are aged 65 today, there is almost a 74% chance you will reach 84, a 50% chance you will reach 87 and even a 5% chance you will reach 100.
 
 
How much will you spend?
 

ASFA estimates the lump sum needed to support a comfortable lifestyle for a couple is $640,000 (or $545,000 for a single person) assuming a partial Age Pension. ASFA also estimates that because a modest lifestyle is mostly met by the Age Pension the lump sum required to support it for a couple is $35,000 ($50,000 for a single person).  It’s not as daunting as it sounds, Help your client's change their future today by clicking here for MLC's interactive tool.

 
Will your lifestyle last as long as you do?
 
Life expectancy is on the rise, but what about your lifestyle expectancy?
How likely will you be able to maintain a comfortable lifestyle in retirement?
 
Challenger’s Lifestyle Expectancy Calculator will measure your clients' retirement savings and investments against what is considered a guideline for a comfortable retirement lifestyle* (ASFA Retirement Standard). 
 

Recent legislative changes to the Age Pension means tests may require you to review your clients' income stream strategies. Challenger has created a range of resources to help you and your clients with the 2017 Government changes.

 
Your Best Interests

As an adviser and member of the AFA, don't forget to update your YBI profile.  The purpose is to help support everyday Australians by making the process to 'Find an Adviser' more accessible.  Some of our members have been experiencing the benefits of Find an Adviser this year; To update your profile log on to your AFA Member Portal at www.afa.asn.au or call 1800 656 009 


 
 
 
 
 
 

 

*Further ASFA Retirement Standard information and assumptions can be found here. We recommend that you seek professional advice from a financial adviser before making any financial decisions. By using this tool you are agreeing to our terms & conditions. It is essential that you read and understand them before using the tool.