Retirement income

Financial squeeze can cancel out joys of retirement, study shows

A new study has found that retirement can be just as stressful as working in a lower-paying job.

The first study to measure stress levels before and after retirement, rather than asking people how they felt, took five saliva samples throughout the day from 1,143 high-, middle- and low-grade public servants working in London.

Vic & NT budget wins for seniors

National Seniors Australia has welcomed the Victorian and Northern Territory Governments’ decisions to maintain concessions to tens of thousands of aged pensioners in their budgets delivered this week.

National Seniors Australia Chief Advocate Ian Henschke said the decisions would ensure many older Victorians and Territorians continued to have access to cheaper utilities, including electricity, gas and water.

The concessions for Territorians would be worth almost $44 million next financial year, and for Victorians $18 million for each of the next four years.

Older homeowners need downsizing options

A proposal to change superannuation concessions for older Australians who downsize their homes will not be effective on its own, according to National Seniors Australia.

Ahead of the 9 May Federal Budget, the Federal Government is believed to be considering tax concessions for retirees who downsize by selling the family home.

But National Seniors Australia Chief Advocate Ian Henschke said this week that the proposal was too narrow on its own.

“Our Rightsizing proposal would benefit more Australian seniors,” Mr Henschke said.

Financial advisers to meet new standards

National Seniors has welcomed a new authority set up to oversee the standards and ethics of financial advisers.

Former Chief Executive of National Seniors, Michael O’Neill, is one of three directors with consumer advocacy experience who have been appointed to the Financial Adviser Standards and Ethics Authority (FASEA).

The other five directors include three with financial services experience, an ethicist and an academic.

Pensions increase with inflation rate from 20 March

Nearly five million people will get a small rise in their pensions or government allowances from 20 March as part of the twice-yearly indexation.

Social Services Minister Christian Porter said the 1.3 per cent increase reflected the Consumer Price Index (CPI) over the six months to December 2016.

The Age Pension and Disability Support Pension will lift by $11.20 a fortnight, bringing the maximum single rate to $888.30 a fortnight.

The rate will rise by $16.80 for a couple combined to $1,339.20 (including Pension Supplement and Energy Supplement).

Pensions increase with inflation rate from 20 March

Nearly five million people will get a small rise in their pensions or government allowances from 20 March as part of the twice-yearly indexation.

Social Services Minister Christian Porter said the 1.3 per cent increase reflected the Consumer Price Index (CPI) over the six months to December 2016.

The Age Pension and Disability Support Pension will lift by $11.20 a fortnight, bringing the maximum single rate to $888.30 a fortnight.

The rate will rise by $16.80 for a couple combined to $1,339.20 (including Pension Supplement and Energy Supplement).

Most expect to work into retirement years

New research shows most Australians in paid employment expect to be working in some form well into their retirement.

A total of 61 per cent of workers surveyed believed their working life would continue into their retirement years.

Seventy per cent said they expected to draw a government pension in retirement.

Galaxy Research’s Ready to Retire Study, commissioned by News Corp Australia in partnership with Industry SuperFunds, found many workers were concerned about how much they would need in retirement savings to live stress-free.

One in two households set for comfortable retirement, report shows

Only one in two Australian households are expected to have enough money for a comfortable retirement, a new report shows.

The latest CommBank Retire Ready Index released this week shows that 53 per cent of households would have enough combined super, personal assets and the Age Pension.

But when the Age Pension was removed, the number of households able to afford a comfortable retirement dropped to 17 per cent, and to a meagre six per cent when based on superannuation only.

Breakfast seminars discuss retirement finances

If you are newly retired, transitioning to retirement or about to give up paid work, National Seniors’ breakfast seminars may help sharpen your financial focus in 2017.

The seminars will be presented by National Seniors Financial Information Desk.

Topics covered include understanding your own situation and the resources you can use, opportunities for fully self-funded retirees, Government Income Support (GIS) and the potential use and types of Equity Release Products.

A question and answer session will follow each presentation.

Unpaid super costs workers dearly, new research finds

Workers on the verge of retirement who are short changed on their superannuation entitlements have nest eggs worth tens of thousands of dollars less than those who are paid correctly, new research shows.

Using the latest 2013-14 data from the Australian Tax Office (ATO), Industry Super Australia found that people aged 60 to 64 earning between $50,000 and $75,000 whose employers did not correctly pay their Super Guarantee (SG), had overall super balances $35,089 or almost 40 per cent less than those who were.

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