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 good news for superannuation balances over the next 40 years.
Treasury runs a micro-simulation model, the ‘Model of Australian Retirement Income and Assets’ also known as MARIA. MARIA enables whole of population projections about retirement income adequacy, spending on the age pension and superannuation balances based on a range of broad economic factors.
So what does MARIA tell us?
- A 65 year old born in 1990 is projected to have a $120,000 higher balance than a 65 year old born in 1970.
- A 50 year old born in 1990 is projected to have a balance $93,500 higher than a 50 year old born in 1970.
- Approximately 13% will retire with a superannuation balance greater than $1,000,000 in 2060 as opposed to 7% this year.
“The future is NEVER clear, and you pay a very high price in the stock market for a cheery consensus. Uncertainty is the friend of the buyer of long term values.” – Warren Buffett.