retirement

Assessing the super system’s performance, according to the PC

The Productivity Commission (PC) has finalised its comprehensive report to assess the efficiency and competitiveness of Australia’s $2 trillion superannuation system. You can download the complete paper here (although it’s 3,142KB — click here for the 646KB executive summary). Assessing the super system’s performance, according to the PC The PC points out that the superannuation

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SMSFs need to prepare for the new transfer balance cap

Recent legislation has introduced several superannuation rule changes. Among them is a new “transfer balance account”, which each recipient of a superannuation pension will be required to have. In other words, individuals receiving superannuation income stream benefits will need to keep a transfer balance account. The use of “accounts” for tax law purposes is not

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Second tranche of super changes caps pension transfer balance

The government’s release of the second tranche of proposed superannuation changes, which covers concessional contributions, catch-up concessional contributions and removing the earnings tax exemption for transition to retirement income streams, also proposes introducing a general pension transfer balance cap. This will limit the amount of super a member can transfer to pension phase and enjoy

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Spike in the number of people intending to retire soon

The number of Australians intending to retire within the next year has been estimated at 415,000, according to new research put out by Roy Morgan Research. This is a 27% increase on the level recorded in 2008, when the figure was 327,000. Roy Morgan says the magnitude of these impending retirements, coupled with what it

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A well-provided retirement? Rely on investment returns, not contributions

The contentious area of contribution caps is something that many SMSF trustees grapple with, but a new report may re-cast this as an overdone concern, especially regarding the eventual level of retirement savings that members end up with. A related factor (about which many may have already pondered) is how much of one’s eventual total

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Report: Retirees spend modestly, despite levels of income

New research has revealed that most retirees do not spend as much as has been thought in retirement, and that this does not vary as much as expected regarding income levels — apart from the lowest income households. The study also suggests that policy proposals regarding superannuation tax concessions may miss the mark as far

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SMSF trustees: Don’t let “cognitive decline” sneak up on you

SMSF trustees: Don’t let “cognitive decline” sneak up on you. As the Australian population ages, and retirees become either fully or partially reliant on their own retirement savings instead of the government pension, the ability to manage those funds may be affected by one of the possible downsides of a long life. The possibility of

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Myth busted: Retirees tend to not run down super savings quickly

A report released by the Actuaries Institute last week on retirement income showed that drawdown behaviour of retirees are similar across the board, regardless of the size or type of retirement savings accounts. Retirees super savings quickly The Actuaries Institute’s Retirement Income Market Report, which it labelled as “the most comprehensive study of Australian superannuation

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SMSFs, tempted by higher yields, should read this report first

SMSFs, tempted by higher yields, should read this report first. Trustees, in the scramble for yield in a lower interest rate environment, would be well advised to read the Australian Competition and Consumer Commission’s (ACCC) seventh annual report on scams activity. By far the most concerning trend in the ACCC’s data related to investment scams,

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