Along with a 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.
What do the stats say about Australians & retirement ?
It you look at Warren Buffett at a sprightly 91 years of age & his right hand man Charlie Munger 97 still steering the ship at ‘Berkshire Hathaway’, we can all be optimistic.
According to the Australian Bureau of Statistics Australians are retiring later in life with approximately. 86% retired by the age of 64.
However the stats indicate that many wont get a choice as to when they retire.
Approximately 20% of retirees are forced to retire due to poor health.
So the strategy of not saving for retirement, with a view to working on later in life is a dangerous path to follow.
Many also retire involuntarily to look after sick relatives or where they are laid off work, especially between the ages of 60 & 64.
For people that involuntarily cease work under the age of 55, 75% are males & 40% are females.
On top of this, the majority of Australian retirement saving are made in the last decade of their employment, due to the power of compounding.
Naturally where this is cut short, many of these retirees will have inadequate savings for the retirement lifestyle, they aspire to.
So lengthening life expectancy, inadequate savings for retirement & involuntary retirement will continue to be a problem.
It is only recently that approximately 50% of the population made it to age pension age & on average if they did so, only lived for a further 10 years.
Now the vast majority of Australian will make it to age pension age (now 67) & will live for a further 20 years on average.
So the message is, start saving and do it earlier.
Give me 6 hours to chop down a tree, and I’ll spend the 1st 4 sharpening the axe – Abraham Lincoln