Saturday 9 Nov 2024
Latest Financial Planning News
Hot Issues
ATO reviewing all new SMSF registrations to stop illegal early access
Compliance documents crucial for SMSFs
Investment and economic outlook, October 2024
Leaving super to an estate makes more tax sense, says expert
Be clear on TBA pension impact
Caregiving can have a retirement sting
The biggest assets growth areas for SMSFs
20 Years of Silicon Valley Trends: 2004 - 2024 Insights
Investment and economic outlook, September 2024
Economic slowdown drives mixed reporting season
ATO stats show continued growth in SMSF sector
What are the government’s intentions with negative gearing?
A new day for Federal Reserve policy
Age pension fails to meet retirement needs
ASIC extends reportable situations relief and personal advice record-keeping requirements
The Leaders Who Refused to Step Down 1939 - 2024
ATO encourages trustees to use voluntary disclosure service
Beware of terminal illness payout time frame
Capital losses can help reduce NALI
Investment and economic outlook, August 2024
What the Reserve Bank’s rates stance means for property borrowers
How investing regularly can propel your returns
Super sector in ASIC’s sights
Most Popular Operating Systems 1999 - 2022
Treasurer unveils design details for payday super
Government releases details on luxury car tax changes
Our investment and economic outlook, July 2024
Striking a balance in the new financial year
The five reasons why the $A is likely to rise further - if recession is avoided
What super fund members should know when comparing returns
Insurance inside super has tax advantages
Are you receiving Personal Services Income?
It’s never too early to start talking about aged care with clients
Taxing unrealised gains in superannuation under Division 296
Capacity doubts now more common
Articles archive
Quarter 3 July - September 2024
Quarter 2 April - June 2024
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 1 of 2021
Articles
ATO’s good-faith approach to crypto won’t last much longer
Navigating the post-pandemic challenges and pathways of super for young women
ATO Small Business Newsroom
Cost of retirement up in December quarter
Why benchmarking will be good for super funds
What exactly is inflation?
The risks in hunting for higher returns
Frydenberg flags super freeze
The real value of advice
Taking a deeper dive into indexation of the transfer balance cap
ASIC sounds warning around high-yield bond scams
How to pass the diversification test
Rollout of Director ID Numbers (DIN) is ahead of schedule
The perks of staying invested
Retirees proceeding with downsizing plans as confidence rises
Early access boosted interest in advice
Vaccination rates as they happen around the world
Approaching the dawn
Videos and other resources for our clients
Retirement the ‘number one trigger’ for financial advice
‘Unfinished superannuation business’ to watch for in 2021
Superannuation ideas for 2021
Retirees need new super investment approach
Returning expats reminded on tax snares with pensions, investments
Retirement the ‘number one trigger’ for financial advice

 

Approaching retirement still remains the top reason for seeking advice from a financial planner, with healthcare costs, outliving their savings and aged care costs some of the biggest concerns, according to a recent research paper.

 



       


A research paper developed by Fidelity International in conjunction with the Financial Planning Association of Australia and CoreData, has found that approaching retirement is still the number one trigger for people to see a financial planner.


The Building Better Retirement Futures paper found that almost a third or 31.7 per cent of those who currently receive it as and when needed, nominated approaching retirement as the reason they sought advice.


This was a greater trigger than buying a property at 23.1 per cent and significantly more likely to make people see a planner than coming into a substantial sum of money at 9.8 per cent.


“Around half of these people or 46.7 per cent, seek advice specifically to help them plan a better retirement, as distinct from the more general aims of help with investing and help with managing or growing wealth,” the paper stated.


The paper noted that clients who are nearing retirement find themselves dealing not only with the financial aspects of helping them lead a comfortable and dignified life in retirement, but the emotional and psychological impacts of transitioning into retirement as well.


“Despite the best-laid plans and the most strongly held expectations, around half of Australians do not retire for the reasons they think they will, nor at a time of their choosing,” the research paper said.


The research indicated that in terms of worries in retirement, health was overwhelming the highest at 47.2 per cent.


The research paper noted that those who retired involuntarily due to health issues are likely to have lower incomes to begin with, and that lower incomes are correlated with lower superannuation balances.


“Also, those who have long-term health problems will likely face additional health expenditure in retirement, especially when pharmaceuticals are involved,” it said.


The next biggest worry was outliving retirement savings at 12.2 per cent and aged care costs at 9.9 per cent. Nineteen point three per cent of the respondents stated that they had no worries and were very comfortable in retirement.


 


 


Miranda Brownlee
06 January 2021
smsfadviser.com


 




24th-January-2021