Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
The Main Challenges Facing Australian Retirees.
Australian Baby Boomers are amongst the wealthiest in the world. The average wealth per retiree couple over the age of 65 is around $1.4million, however, approx. $1milion of that wealth is tied up in the family home. Studies also show that 75% of retirees intend to retire in their homes, rather than downsize and enter aged care accommodation. As such more attractive options to access home equity are already emerging to compliment the other two pillars of Australia’s retirement policies: the Age Pension and the Superannuation system.
Australian retirees now need to plan for 25-30 years of retirement and as such are looking for additional options to approach retirement with confidence. An average Australian couple aged 65 expect to live together in retirement for 20 years, with the surviving spouse to live into their late 90’s. While there are policies in place to support in-home ageing, the significant decrease in the number of tax paying workers supporting Australians on the Age Pension and Aged Care over the next 20-30 years, makes it clear the government will not be able provide what is required under current policies. Without doubt the enormous amount of wealth tied up in Australian homes will have a much bigger role to play in supporting retirement longevity issues.
“Our favourite holding period is forever.” – Warren Buffet.
