Kaye Fallick, Author at Retirement Essentials

Time to switch super? First consider the pros and cons

A recent ASIC report into so-called ‘superannuation reviews’ has thrown the spotlight on just how risky quick super changes might be. The subsequent ABC TV report on these questionable super ‘review’ services revealed dangerous traps for those saving for retirement. There is an ASIC investigation underway into at least three companies, whose modus operandi seems to be a cold call with an offer of better returns and pressure to sign documentation to move your super to their management.

Whilst such tactics may sound like a scam to you, many unsuspecting people took the calls and considered the offering. Some even moved their money. We await an ASIC ruling to determine if this is a scam. But in the meantime, what this practice does raise is the broader issue of super performance and when it’s useful to move your super – or not. Today we focus on the pros and cons of rolling over your savings to a different fund and what needs to be considered before you do so. Our focus is on those either in retirement, or pre-retirement with money in industry or retail super funds.

How your super can lead to a comfortable level of income in retirement depends upon many factors. So before weighing up the pros and cons, let’s explore the way super contributes to your ultimate lifestyle after full-time work through some questions about your understanding of super.

Should the family home be included in the assets test?

by Kaye Fallick | Centrelink Age Pension

A bold initiative from the Actuaries Institute proposes that the family home should now be included in the assets test. It’s far from the first time this policy has been suggested – and it probably won’t be the last. But is it an idea worth considering? A detailed discussion paper on this topic was released by the Actuaries Institute last week. Authored by Andrew Boal, partner at Deloittes, the ‘dialogue’ paper outlines the primary role the house can and will play in most peoples’ retirements.

The importance of the home and potential use of equity in the home to boost retirement income is something Retirement Essentials has reported on for some time now. The home is one of the five main pillars of retirement funding, alongside the Age Pension, Superannuation, work income and private savings. Using home equity as a source of funding has been increasingly supported by government policy, through legislation including more widely available downsizer contributions and the government’s own Household Equity Access Scheme (HEAS) which has been expanded in recent budgets.

How to achieve financial wellbeing

by Kaye Fallick | Retirement Advice

Being wealthy is very much in the eye of the beholder.

While one person’s sense of wealth might come from their health, another’s could rest upon the strength of their relationships. Yet someone else might measure their wealth by the size of their super, particularly if they believe that this guarantees them choice and independence in later life.

Of course no one point of view is right or wrong. Such judgements are entirely personal and may change over time.

But financial wellbeing is something that can be defined in a way that enables us to measure whether we are likely to meet our needs and reach our goals.

Checking whether you are on track as you head into retirement is a critical point of intervention. This then sets you up to actively manage your money across the 25 or 30-year journey, which is the best way to maintain your sense of financial control and wellbeing. Here are the top five parts of the puzzle that you will encounter as you approach and enter retirement – and ways to respond to ensure you remain on top of your game at all times.