Retirement income

Credit to Shorten for listening, but more required

By Chief Advocate Ian Henschke

A week’s a long time in politics and a fortnight’s even longer. 

Bill Shorten spoke to reporters on 14 March and announced his policy to save $59 billion dollars over 10 years. He said he’d do it by ending tax credits to share-owning retirees with no taxable income. He was ready for a “tough debate”. He got one. It created so much anger and concern among those affected he’s now “improved” his policy. 

Australians planning to work for longer

It will come as no surprise to most that new research shows Australians plan to work longer, with 61.9 years the average age of those intending to retire in the next 12 months, up from 58.2 years from 2014.

Roy Morgan Research said the number of intending retirees continued to grow and stood at 415,000, an increase from 392,000 in 2014 and 326,000 in 2008.

The results, covering the period 2008 to 2017, were from the Roy Morgan Single Source survey of more than 50,000 people, including 500 intending retirees.

Labor not budging on dividend imputation tax plan

Opposition Leader Bill Shorten is refusing to back down on the dividend imputation policy despite a widespread backlash against Labor’s plans to abolish franking credit cash rebates for retiree investors.

The Labor leader last week rejected calls to water down the proposed policy, or exempt pensioners or those with modest self-managed superannuation funds.

Mr Shorten said Labor was braced for “a tough debate” and it was unfair that “a few people” could claim a tax refund when they had paid no tax.

ALP dividend changes need more consideration

National Seniors Australia has warned proposed ALP changes that would end cash refunds to retirees claimed through share dividend imputation could backfire.

Chief Advocate Ian Henschke said this week that the plan, designed to claw back $59 billion over 10 years from wealthy retirees, could hurt many full and part age pensioners who had been encouraged to diversify by including shares in their retirement portfolios.

Time out of workforce takes toll on women's super

Women will continue to retire with less super than men due to time out of the workforce and lost compound returns, a new study shows.

In a first of its kind, Industry Super Australia adviser and former Treasury retirement modelling head, Phil Gallagher, used data from the Australian Bureau of Statistics (ABS) to plot both pay and superannuation gaps by age and salary.

Seminar to help Sydney seniors plan their financial futures

Sydney residents can learn how to better fund their retirement at a National Seniors seminar at Parramatta on Tuesday, 27 March.

Co-presenter Basil La Brooy from National Seniors Financial Information Desk (FID) will be exploring ways to make the transition from work to retirement, take stock of resources, set financial goals and understand retirement income streams.

Hope for the best, plan for the worst? Insights into our planning for a longer life.

Australians are enjoying among the longest life expectancies in the world, a trend which is expected to continue.
They are also being asked to do something not previously required of their parents and grandparents, namely, to save for a longer life than expected. However, there is limited availability and take-up of financial products that can assist individuals to efficiently manage the risk of outliving their savings. The growing fear that Australians’ saving behaviour is not keeping pace with increasing life expectancy is also now a major issue around the world.

Australians intend to work longer

Australians are retiring later, in keeping with the continuing trend to stay in the workforce for longer, new data shows.

The Australian Bureau of Statistics (ABS) said that on average in 2016-17, around 13 per cent of people aged 45 years and over were intending to continue in the workforce until they were 65, up from a decade ago when nine per cent of Australians said they would retire at 63.

“This is consistent with the continuing trend of people staying in the workforce for longer,” the ABS’s Bruce Hockman said.

Downsizing off agenda for 40 percent of seniors

Home is where the heart is, and for more than 40 per cent of older Australians, it determines where they live in retirement.

National Seniors’ new research report reveals that while many Australians consider downsizing to a smaller house when they retire, a substantial proportion of older homeowners rule it out because they don’t want to leave their house, neighbourhood and community.

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