Amanda Hardy Lai, Author at Retirement Essentials

Is 67 the right time to retire?

by Amanda Hardy Lai | Planning for Retirement

Stop now – or keep working?

Retirement at 67 is often seen as the default, but is it really the best choice for everyone? Helen, who turns 67 in April, is weighing up her options. She has $275,000 in superannuation, $25,000 in personal assets, and $10,000 in cash. She earns $68,000 working part-time and receives a UK pension of $9,800 per year. She enjoys her work and isn’t in a hurry to stop, but she also wants to make sure she’s financially secure.

So, should Helen retire now or keep working part-time for a few more years? Let’s explore her options. Helen’s dilemma is a great example of the diverse experiences and attitudes of many Retirement Essentials members. Some can’t wait to finish working so they can have new experiences and adventures. Others are genuinely loving their work and want to transition to a retirement lifestyle while keeping their options open.

What does annuity mean for you?

by Amanda Hardy Lai | Retirement Income

Annuity rules explained

When we talk about retirement income, Account-Based Pensions (ABPs) often take centre stage because they’re the most common retirement income streams. But they’re not the only option.

Lifetime income streams, such as annuities provide guaranteed income for life, protecting against the risk of outliving savings. Yet very few Australians retirees choose them – only 3.5% of pension assets are in annuities, compared to 84% in ABPs. (APRA, 2023m as cited in Treasury 2023)

Why don’t more retirees choose annuities?

The Treasury’s 2023 discussion paper on superannuation in retirement noted several key factors which contribute to the low uptake:

Pricing and longevity risk: Australians are living longer than expected, making annuities more expensive to purchase and provide.

Lack of flexibility: Many retirees worry about locking up their savings and not having access to funds for unexpected expenses.

Upfront cost: The one-time purchase price can seem high, even though it guarantees lifelong income.

Helping Gary feel more financially secure

by Amanda Hardy Lai | Retirement Advice

Amanda Hardy Lai is a problem solver at heart. and that the world of investment was actually really interesting. Fast forward a couple of decades and Amanda is now the mother of two teenagers living near the coast in suburban Melbourne. She loves swimming and pizza. And she loves solving problems even more!

‘The best thing about my role at Retirement Essentials is engaging with people.’

Amanda is also responsible for many of the explanations in our weekly enews:

‘Sharing stories and explanations is a big part of my job. I love being the person who can break down complex information and make it easier for others to understand.’

One common situation when planning for retirement is that many people assume they won’t qualify for Centrelink benefits – especially if they’ve built up a good amount of super. But the reality is, eligibility rules are complex, and small adjustments can make a big difference.