Superannuation

Giving you more say in your super? Not likely with these changes

The government is introducing a raft of changes to the regulation of superannuation in a bid to give consumers more power over their retirement funds. But, in fact, consumers are unlikely to use these new powers and the changes might not improve super fund performance. The headline change introduces annual general meetings (AGMs) for superannuation…

Redefining the concept of retirement

By Wealth Foundations Increasingly, there is also pressure to redefine the concept of retirement. Among others, US retirement and financial planning coach, Mitch Anthony, in his book “The New Retirementality”, argues that the traditional notion of ceasing work in your early to mid-sixties and embarking on a life of leisure is outdated, given both financial…

Five reasons the Turnbull government shouldn’t let us spend super on a home

Brendan Coates, Grattan Institute and John Daley, Grattan Institute Allowing first homebuyers to cash out their super to buy a home is a seductive idea with a long history. Like the nine-headed Hydra, which replaced each severed head with two more, each time the idea is cut down it seems to return even stronger. Both…

Super fees vary wildly, and it will hurt your retirement income

Jim Minifie, Grattan Institute In the six months since the Financial System Inquiry found Australia’s A$16 billion superannuation industry needed to improve efficiency, there’s been little willingness by the sector to admit to it. Some industry leaders continue to argue that funds compete vigorously, so the outcome must be close to efficient, with little more…

The increasing cost of retirement

By Wealth Foundations In a recent speech to the “Australian Financial Review” Banking and Wealth Summit, the Governor of the Reserve Bank, Glenn Stevens asked a very important question: “How will an adequate flow of income be generated for the retirement community in the future, in a world in which long-term nominal returns on low-risk…

Low interest rates set to stay, so what’s the best investment course for retirees?

Osei K. Wiafe, Griffith University With interest rates at or near-record lows and the recent release of the 2015 Australian government Intergenerational Report, people nearing retirement may well be evaluating their retirement investment decisions. Retirees who invest in increasingly conservative assets, such as reallocating their capital from equities to bonds and/or cash, are under threat….

Spending the kids’ inheritance

It’s an ancient human law and it makes us do extraordinary things. Author Tom Wolfe calls it serial immortality; it’s that unnamed force that sees the soldier risking his life in battle, or the person who stgotes their life to the struggle for their people, a battle that cannot possibly be won in their lifetime….

Net wealth is a poor indicator of preparedness for retirement

By Wealth Foundations Having a wealth check is equivalent to a medical check-up with your doctor or a physical at the local gym. It’s for people who want to know where they stand financially, but don’t feel comfortable self assessing, and know that their friends’ financial behaviours aren’t likely to be a good guide for…

Stocks to cash in on Australia’s ageing population

Sometimes your eyes and ears truly are the best investment tools. This week, I counted at least three large residential aged-care facilities under construction in my suburb and a couple in surrounding areas. One is a few blocks from my house – there goes the neighbourhood! It is astonishing how much money will be made…

Every weekend could be four days long, if the will was there

By David Spencer, University of Leeds In a world of iPhones and drones, people are right to wonder why they are still working so hard. The past century saw huge technological advances and yet there hasn’t been a corresponding increase in leisure time: people are working as hard as ever. The Easter break lasts for…