Superannuation

Why Australians don’t make extra super contributions

By Jun Feng, Monash University; Hazel Bateman, and Paul Gerrans, University of Western Australia Australians are increasingly relying on superannuation for their retirement income, but despite more than 20 years of compulsory super, many people are not retiring with enough. The assets under management of the superannuation sector now exceed A$1.8 trillion (greater than annual…

Taxing times for self-managed super funds

By Helen Hodgson, Curtin University Self-Managed Superannuation Funds (SMSFs) are the fastest growing sector of the superannuation industry, spiking by 33% between 2008 and 2012, putting them in the sights of both the super industry and the Australian Taxation Office. From July the ATO will be able to levy individual fines of up to A$10,200…

What level of sustainable income can you expect from your retirement portfolio?

By Wealth Foundations Determining the level of sustainable annual income your retirement capital can provide is a far more complex calculation than most people appreciate. Many retirees manage their wealth by simply living off the income generated from their retirement portfolio while leaving their capital untouched. They tend to favour investments that maximise income distributions…

Australians living beyond their means

By Wealth Foundations We previously published an article (in June 2011) that looked at the financial strength of the average Australian household and how it had changed over time. This article provides an update to reveal changes over the past three years. The data, taken from the Reserve Bank of Australia’s statistical tables, is highly…

Why interest rates aren’t as low as they seem

By Wealth Foundations  Both bank term deposit and lending rates are at or close to generational lows. In response, term deposit investors are searching for higher yielding opportunities, having seen rates approximately halve since March 2008. Often, they are purchasing products specifically designed to provide higher income but with a bundle of unappreciated risks attached….

Can super investors really bank on ethical investment?

By Sara Bice, University of Melbourne One quarter of Australians would be willing to switch superannuation funds to avoid investing in coal or coal seam gas, according to a recent survey. Not only does this research raise important questions about the coal/coal seam gas industry’s social licence to operate, it poses new questions about the…

How much do I need to retire?

By Wealth Foundations In response to the often asked question, “How much do I need to be able to retire?”, as a rough “rule of thumb” we suggest that you need to accumulate investment wealth of at least 25 times your expected annual retirement spending (the “Rule of 25”). So, if you want to have…

Rise of super funds will shape Australia’s financial sector

By Kevin Davis, Australian Centre for Financial Studies How will the shape of Australia’s financial sector evolve over the coming decades? How will the demand for finance change? Where will the supply of funds come from? Can we be confident that available funds will be allocated to their best uses to promote economic growth and…

Rise of super funds will shape Australia’s financial sector

By Kevin Davis, Australian Centre for Financial Studies How will the shape of Australia’s financial sector evolve over the coming decades? How will the demand for finance change? Where will the supply of funds come from? Can we be confident that available funds will be allocated to their best uses to promote economic growth and…

Retirement planning: more than a financial exercise

By Wealth Foundations The non-financial aspects of retirement planning may be critical In our work with clients, our primary focus is the effective accumulation of wealth over the period to a nominated retirement date (or desired date for financial independence) and then the drawdown of that wealth to meet a desired retirement lifestyle. It is…