This very issue was the subject of a recent private binding ruling (released 25 March 2024). The taxpayer had for a number of years (actual number was redacted in the published ruling) made personal superannuation contributions for which the taxpayer claimed a tax deduction. The actual amount of each of these contributions was not provided in the published ruling.
Support from advisers alongside financial education continues to be an integral driver of older Australians’ contentment in retirement, according to new data from Challenger. The 2024 Challenger Retirement Happiness Index revealed a score of 70 for Australians over the age of 60, citing financial wellbeing as a primary determinant.
Read MoreWith an increasing number of elderly parents living with their adult children is it possible that an adult child of a deceased parent could, on the death of the parent, receive their parent’s superannuation tax free?
Two significant changes have been made to the Work Bonus scheme. These changes apply from 1 January 2024. The first change is that an initial credit of $4,000 will be granted to the “work bonus bank” of each new age pension recipient. The second is that the maximum balance of the “work bonus bank” has been increased to $11,800 (previously the maximum balance was $7,800).
Read MorePractical tips to close a retirement savings gap between genders that is larger than we think. The media has recently been filled with commentary on the gender pay gap. We constantly hear about differences in retirement savings between men and women. The solution seems clear - close the pay and retirement savings gap and we will reach equality.
Read MoreSavvy investors can use a Transition-to-Retirement account to increase retirement savings and save on tax.
According to one adviser, once younger Australians understand how financial advisers are helping clients, they will be clamouring to join the profession.
Read MoreA new report has underscored the importance of financial advice in retirement planning and stressed the necessity for both advice and innovative products from superannuation funds in a well-rounded retirement ecosystem.
Read MoreAn analysis of retirement withdrawal rates is not the most exciting topic in the world. What is exciting is a retirement filled with spending on trips, meals and socialising with family and friends. And unfortunately, the amount of money that can be safely withdrawn from super each year will dictate if your retirement means sipping champagne in Paris or eating canned beans in your child’s spare bedroom.
Read MoreFinancial advisers help Australians with a wide range of financial issues during their lifetime, from budgeting to estate planning and everything in between. We also help Australians to have a more positive outlook, to feel more prepared and secured and to consider reaching out to other wealth professionals if they have a need.
Read MoreIn our modern world, advice firms are continually evolving their value proposition and service offer to meet the needs and wants of their clients. Over the last three years, portfolios have changed, their use of digital technology and their expectations from their financial adviser has evolved.
Read MoreUnlisted assets make up a growing and significant portion of many industry superfunds. AustralianSuper had 26.6% of their funds in unlisted assets at March 2022. Australian Retirement Trust’s Super Lifecycle investment strategy (Balanced) is 32.93% at June 2023. Nearly 50% of Hostplus’ Balanced MySuper option is in unlisted assets.
An aging population will drive policy decisions. New forecasts from the Australian Bureau of Statistics (ABS) highlight how quickly our population will age, and investors need to prepare now for the enormous changes that it will bring.
Read MoreIn 2023, central banks tightened policy severely, hoping their actions would return their economies to normal without causing a sharp recession in the process. We think policymakers will largely achieve their goals in 2024 and 2025, and we will let historians decide whether this was by luck or good judgment. We think labor markets, wage growth and inflation will return to somewhere near normal levels as a period of policy-induced weak growth rebalances labor markets and economies as a whole.
Read MoreFor those who have saved a healthy nest egg, retirement is a dream destination, one where you have loads of free time and zero responsibility.
Read MoreEvery transition in life is difficult. Humans are creatures of habit and we tend to find change challenging. Going from a regular paycheck to funding life from a portfolio is a night and day experience for many investors. It also changes the strategy and approach we take as investors.
Read MoreOne of the most significant features of account-based pensions is the ability to commute the pension, whether in full (also known as a 100% commutation) or in part (a partial commutation ie. less than 100%).
When planning for retirement the first step is to provide a cash reserve and the second step is to establish a secure income. A secure and stable income will provide you with peace of mind that you are able to cover your everyday living expenses.
Read MoreOne of the biggest challenges in investing is the transition into retirement. Walking away from your career requires confidence that you have enough savings to last for the rest of your life.
A new report suggests most Australians want to share their wealth with the next generation but are unsure of the best ways to do it.
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