Amanda Hardy Lai, Author at Retirement Essentials

Gifting gone wrong: Avoiding the ghosts of bad decisions

We can all get a dopamine hit from choosing the perfect gift, knowing the happiness it can spark. But in the realm of financial planning, not every act of generosity comes without strings. Without careful thought, well-meaning gifts can backfire, leaving consequences that linger like the ghosts of Christmas past – haunting your retirement plans and even your eligibility for government support.

Whether it’s helping family, celebrating milestones, or giving to charity, it’s important to understand the implications of gifting—especially if you’re receiving or applying for Age Pension or other social security benefits. Gifting rules exist to ensure that assets or income aren’t simply given away to boost entitlements. Let’s take a closer look at how gifting can go wrong and ways to steer clear of potential pitfalls to ensure your generosity aligns with your financial goals.

Who inherits when you’re gone?

by Amanda Hardy Lai | Retirement Advice

It’s a question many of us don’t think about – until we’re asked to make a nomination when opening a superannuation account or starting an Account-Based Pension (ABP).

For many Australians, super is one of their largest assets outside the family home. Deciding who will benefit from it isn’t just about ticking a box – it’s about ensuring your wishes are carried out and your loved ones are cared for. Many of us enjoy the time over the end of year break to review our financial assets and ensure they are securely organised. Now is a great time to get started, so here is the detail you need to more fully understand how to go about this.

Unlike other assets, your super doesn’t automatically form part of your estate. Instead, it’s distributed by the super fund trustee based upon your nomination, or at their discretion if no valid nomination exists. That’s why it’s critical to understand the options, whether to make a:

Binding, or non-binding,

Lapsing or non-lapsing nomination;

And to consider who qualifies as a valid beneficiary.

But there’s more to it. Tax implications, the relationship between you and the beneficiary, and even estate planning considerations – like avoiding disputes or protecting your assets from creditors – can all come into play. In NSW, for example, notional estate laws can create an unexpected twist.

Protecting your income over Christmas

by Amanda Hardy Lai | Retirement Income

Christmas is a magical time of the year, but between the joy of giving and taking that much-needed holiday break, it’s easy to overspend. With higher interest rates stuck for the whole year and a higher cost of living, the New Year could bring a financial hangover. But it doesn’t have to be that way. With some planning and the right tools, you can protect your income this holiday season without sacrificing the festive cheer.

The view of the RBA is that the underlying inflation rate of 3.5% (over the year to September) remains too far above the 2.5% target, and the outlook is that it could be some time in 2026 before it’s likely to approach that level. Returning inflation to target range remains the RBA’s major priority.