Retirement income

Seniors reject pensioner reverse mortgage proposal

A proposal by the Centre for Independent Studies to reverse mortgage the family home could leave many elderly people without roofs over their heads, National Seniors warns.

“The centre is proposing the government include the family home in the pension assets test and encourage people to take out reverse mortgages,” National Seniors chief executive Michael O’Neill said.

“The proceeds of the reverse mortgages would be included in the income assets test for the Age Pension and according to the Centre, slash $14.5 billion from the cost of the pension each year,” he said.

Take a broad view of retirement income, say seniors

National Seniors believes Australia’s retirement income system would be unworkable in the future unless the government undertakes and acts on a broad review of all its aspects.

But any proposed changes should be taken to an election, National Seniors chief executive Michael O’Neill said.

“Without change we will continue to see an inefficient allocation of resources, we will see growth in the economy diminish and we will continue to be challenged on how we sustain the economy with a growing and ageing population,” he said.

My Generation: Are Australian baby boomers the retiring kind?

The largest and most influential age group in Australia is set to start leaving the paid workforce during the next 20 years. The so-called ‘baby boomer’ generation, made up of almost 5.6 million Australians born between 1946 and 1965, is now aged in their 50s and 60s – over 800 baby boomers are turning 50 each day.

The baby boom generation is surviving to older ages in fast growing numbers. It is also a distinctive group – reportedly being healthier, more active, better educated and with higher expectations than previous generations.

Ageing Baby Boomers in Australia

Australia is being transformed by population ageing, along with social, economic, and policy change. We are at a critical demographic turning point because the baby boom cohort - the 5.5 million people born between 1946 and 1965 - has begun to turn 65 years of age.

Financial Wellbeing: Concerns and choices among older Australians

Older Australians face a range of risks that can impact on their financial security in retirement. How much does a retiree need for future expenditure?; if they live longer than expected will the money set aside be sufficient?; will their funds keep up with costs of living?; and how can one reconcile the need for investment growth with requiring certainty of income and spare funds for emergencies? 

Self-funded retirees hit by falling interest rates

The decision this week to cut the official interest rate will further erode the income of term deposit holders, especially self-funded retirees, says National Seniors.

The Reserve Bank of Australia cut interest rates for the first time in 17 months from 2.5 per cent to 2.25 per cent.

National Seniors chief executive Michael O’Neill said seniors living off simple investments such as term deposits would be hit the worst.

“Seniors aged over 65 own 45.3 per cent of bank and financial institution term deposits and most of them are on low, fixed incomes,’’ O’Neill said.

Tougher financial adviser standards needed now, not 2019

Seniors have welcomed a report recommending higher education and professional standards for financial advisers but said the 2019 deadline for compliance was too far away.

The Parliamentary Joint Committee (PJC) Inquiry report has called for Australian financial planners to meet tougher professional, ethical and educational standards, including a minimum degree qualification.

National Seniors said that Australians – particularly those near or in retirement – wanted better qualified financial advisers looking after their hard-earned savings.

Falling term deposit rates hit older Australians

Older Australians with term deposits are being urged to shop around for the best deal amid reports by the Reserve Bank of Australia that banks have been reducing their term deposit rates.

The RBA’s November 2014 Monetary Statement said: “Banks have reduced their term and at-call deposit rates over the past few months, suggesting that competition for deposits has eased.”

The report also said depositors were continuing to move away from term deposits as the interest rates on these products “continue to be less attractive in comparison to bonus saver accounts.”

Seniors dismiss Minister’s financial advice register

Older Australians have labelled the announcement of a financial adviser register only days before the government moves to finally scrap consumer protections in this area, as 'audacious'.

Finance Minister Matthias Cormann, with the support of Palmer United in the Senate, is set to levy his final blow to protections for people seeking financial advice this week.

National Seniors chief executive Michael O’Neill said: “The announcement of a public register of financial advisers only days before the final axing of other consumer protections in this space, is audacious.

Australia's super system ranked second

Australia has the world’s second best retirement savings system after that of Denmark, according to the findings of a new report.

The Melbourne Mercer Global Pension Index showed Australia’s ability to fund the lifestyles of retirees had climbed one place in the index compared to a year ago.

Australia’s position rose thanks to recent increases in compulsory superannuation payments from nine per cent of wages to 9.5 per cent from 1 July this year.

Featured Article