A new approach to calculating retirement income

Retirees looking for a simple way of working out how much income they should draw from their superannuation each year can try this simple rule of thumb: draw down a percentage based on the first digit of their age; and…

Counting the investment cost of climate change

Climate change will cost Australian close to 20 per cent of their retirement savings, according to estimates in an Actuaries Institute paper published last week. For a worker on median earnings, exposure to the negative long-term return implications of climate…

Kavanagh

On Friday Treasurer Josh Frydenberg announced the terms of reference for a review of the retirement income system, which will look at the interaction of compulsory superannuation, the Age Pension and voluntary savings (including home ownership). We got some valuable…

Kavanagh

Reverse mortgages can be a useful financial tool for retirees looking to unlock some of the capital in their homes to supplement their superannuation and age pension incomes. But the product is failing. New mortgage date from the Australian Prudential…

Kavanagh

People approaching retirement do not have a good sense of how much superannuation they need for retirement or how long their money will last. They are not very good at preparing for the risks associated with longevity, ill health or…

ATO confirms its approach to exempt current pension income

The Australian Taxation Office has confirmed that self-managed super funds will be required to use the so-called “segregated method” to calculate tax exemptions for superannuation pension income. In what is a contentious decision, the ATO has sugared the pill by…

ATO under fire for adding to SMSF administrative burden

The new superannuation balance cap rules introduced this month have added to funds’ administrative load and now the Australian Taxation Office is adding more, according to an industry body. The Actuaries Institute has raised concerns about the way the Australian…