The Grattan Institute Report “Money In Retirement – More Than Enough”

The Grattan Institute report “Money In Retirement – More Than Enough” paints a picture for retirees that seems disconnected from the real world.

If you believe the report, the super system is serving Australian’s so well that its generosity needs to be significantly scaled back? Imagine a world where pre-tax contributions were limited to $11,000 per year and after tax contributions were subject to a $50,000 per year/$250,000 lifetime cap!

With $17.5 billion currently in lost super, it seems a lot of Australian’s are not taking their super very seriously and this is probably because they see it as a gift as they don’t make any additional contributions to super themselves. If they sought advice and made some additional contributions at an appropriate time and in the most effective way, the outcomes could be so much better.

Perhaps there is merit in linking future super concessions like increasing super guarantee from 9.5% to 12% (opposed by the Grattan Institute report) with a mandatory requirement for members to have to make additional super contributions to gain the additional entitlement from their employer? This might improve member engagement with their super and further reduce the reliance on the Age Pension in the future?

https://grattan.edu.au/wp-content/uploads/2018/11/912-Money-in-retirement.pdf

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It’s Time For Public Servants In The CSS And PSS To Take Notice Of The Latest Superannuation Changes!

The new superannuation changes take effect from 1 July 2017 and for members of some defined benefit superannuation schemes these changes are significant.

For members of the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation (PSS) Scheme things are about to change significantly, and for the worse. Currently the unfunded portion of employer contributions to the CSS and PSS for contributing members are ignored for the purpose of determining their Concessional Contribution Cap, but that is about to change!

From 1 July 2017 a notional employer contribution for CSS and PSS members will be reported to the Australian Taxation Office and with the associated reduction in the annual Concessional Contribution Cap to $25,000, salary sacrifice contributions may need to be scaled back significantly.

For members of the CSS and PSS, the calculation to determine the maximum amount that can be salary sacrificed to superannuation is about to become more complicated. CSS and PSS members who are currently maximising their salary sacrifice entitlements will also need to account for the fact that their last payday for this financial year falls on 29 June 17.  There is therefore a real risk that the last salary sacrifice payment from this financial year may be received by their superannuation after 30 June and count towards next year’s concessional contribution cap of $25,000.

With all of this complexity, isn’t it great to know that our business, The Financial Advice Shop, has experts available to help you make sense of all this and can provide assistance where required. If you feel you might benefit from a Financial Advice Health Check in preparation for the latest round of superannuation changes that commence on 1 July 2017, contact us without delay.

In a complex world, there has never been a better time to contact us to see how your financial situation could be improved.

http://www.financialadviceshop.com.au/latest-superannuation-changes.html

 

The Latest Superannuation Cap Changes Are Terrible News For Defined Benefit Pensioners!!!

The new rules for superannuation and pension Transfer Balance Caps will reshape the way some Defined Benefit Pensioners approach their personal superannuation contributions and overall superannuation entitlements. Some will even have the right to make personal contributions to superannuation taken away from them forever!

The Government has chosen to use a very large multiple to apply to Defined Benefit Pensions when determining the amount recorded against the Transfer Balance Cap. Some consider the multiple used is extravagant and when other pension and superannuation accounts are included it is quite easy for Defined Benefit Pensioners to reach and breach the $1.6m Transfer Balance Cap.  Some senior executives will breach the $1.6m Transfer Balance Cap with only their Defined Benefit Pension and tax penalties will apply.

More than ever before, current and former Defined Benefit Pension recipients (such as CSS, PSS, DFRDB, MSBS and many others) need to look carefully at their situation when it comes to contributions, superannuation accounts and entitlements but they should not leave it until the last minute if they are likely to be affected. The new rules take effect on 1 July 2017 and penalties can apply for breaches but fortunately there are strategies to be considered to improve the situation.

The Government and Australian Taxation Office are expecting affected Defined Benefit Pensioners to take all necessary actions with all of their superannuation entitlements before 1 July 2017 to avoid financial penalties.

If you are a current or former member of the CSS, PSS, DFRDB or MSBS who is not sure what the latest superannuation Transfer Balance Cap changes might mean to you and all of your superannuation entitlements, you should consider contacting us. New client places are strictly limited but to get things started, we can offer a very cost effective Financial Advice Health Check discussion to ensure you can potentially access our experience to understand all of your future superannuation investment strategy options.

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop without delay to see how we can help you.

We have never had anyone say that our Financial Advice Health Check wasn’t value for money and we won’t deal with anyone where we can’t add value! If you are referred by someone we know, you will even get a discount!

www.financialadviceshop.com.au

#CSSTransferBalanceCap #PSSTransferBalanceCap #DFRDBTransferBalanceCap #TransferBalanceCapDefinedBenefit #TransferBalanceCap #excesstransferbalance

The Effects Of The New Superannuation Rules Are Complex And Should Not Be Underestimated!!

On 23 November, the Australian Parliament passed the Super measures announced in the 2016 Federal Budget.

There are a number of significant changes being made to superannuation and a summary of some of the major changes is available via the following link:

http://nebula.wsimg.com/59c0a5c4ac67ea27de95cd90d4c2e40e?AccessKeyId=255E926C354D54DF0D43&disposition=0&alloworigin=1

The effects of the new superannuation rules are complex and should not be underestimated, but fortunately there are things you can do to minimise the effects. It is important that you take the time to understand the new rules and immediately make appropriate changes where required. It could be that urgent action is required before 30 June 2017 to ensure you are not disadvantaged.

If you are starting to think about your superannuation and retirement, or know you should be planning for your retirement, it is time to start taking action with a trusted financial planning advice discussion to “see what’s possible”. Perhaps you also know someone else who should be talking to us?

HOT TIP: The need for honest, transparent and practical financial planning advice has never been greater, so contact The Financial Advice Shop  without delay. To get things started, we offer a very cost effective Financial Advice Health Check discussion to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

We have never had anyone say that our Financial Advice Health Check wasn’t value for money! If you are referred by someone we know, you will even get a discount!

http://www.financialadviceshop.com.au

#1.6mcap #1.6milliondollarcap #superannuationcaps #superannuationchanges #retirementplanningcanberra

Many Argue That Investing In A Financial Index Is A Really Stupid Idea?

At The Financial Advice Shop we have carefully considered the reasons for and against investing in a Financial Index and have formed very strong views on many of the relevant issues. Some of our conclusions will surprise you.

A Financial Index is defined as a stock index or stock market index that is a measurement of the value of a section of the stock market. A Financial Index is computed from the prices of a selected range of stocks.

If you are concerned about high fees, poor service, in-house products, conflicts of interest or any other financial planning issues, always get a second opinion from a third party expert before you make changes. If you have a gut feeling that something is wrong or that someone is doing a sales job on you, you are probably right.

While you are thinking about your superannuation investments, give some thought to your long term strategy, particularly since a range of 2016 Budget superannuation changes are now in play. Having an appropriate financial planning strategy is often far more important than simply thinking about your investments in isolation, so take the time to put the two together via a second opinion for the best chance of an optimal outcome.

With investment recommendations that have no hidden fees and commissions, The Financial Advice Shop is confident our financial advice packages represent excellent value for money. That is why we are able to regularly save many new clients thousands of dollars in ongoing fees every year!

HOT TIP: The need for honest, transparent and practical financial advice has never been greater, so contact The Financial Advice Shop without delay. To get things started, we offer a very cost effective Financial Advice Health Check to ensure you can access our experience to understand all of your fees and future superannuation investment strategy options.

www.financialadviceshop.com.au

#financialindex #financialindexcanberra #financialindexfees #financialadvicecanbera #financialadvice #retirementadvice #superannuationadvice #superannuation #superannuationfees

Are You Still Being Ripped Off With High Superannuation And Investment Fees?

There has never been a better time to review your superannuation investments and consider options to reduce costs. If you do not take action, you can be 100% sure that no one else will!!

In recent years investment costs have been slowly falling but unfortunately those costs are often not passed on to everyone. There are a variety of reasons why many investors are not benefiting from lower superannuation and investment costs, some of which relate to conflicted financial adviser remuneration.

None of the superannuation or investment recommendations from The Financial Advice Shop have hidden fees or commissions so you can be confident they represent excellent value for money. It is a fact that we regularly save many new clients thousands of dollars in ongoing fees every year.

HOT TIP: The need for honest and practical financial advice has never been greater, so contact The Financial Advice Shop without delay to arrange a cost effective Financial Advice Health Check to ensure you understand all of your fees and future superannuation investment options.

www.financialadviceshop.com.au

#superannuationfees #superannuation #financialadvicecanberra #superannuationcosts #financialplannercanberra #financialplanningcanberra #retirementplanningcanberra

The Government Backflip’s On Their Original Superannuation Changes To Gain Support!

The Government has announced a few changes to their 2016 superannuation Budget proposals.  Some key points are now as follows noting they are still subject to Legislation:

  • The $500K lifetime Non Concessional Contributions (NCC) Cap has been dropped.
  • The Government has instead announced a reduction of the current annual NCC Cap from $180K to $100K from 1 July 2017. The 3-year bring forward provisions will remain as per the current provisions based on the lower cap. No NCC contributions will be allowed once the proposed $1.6Million transfer cap has been reached.
  • The reduction to a $25K NCC cap will remain in place and commence from 1 July 2017.
  • The concessional contribution catch up provisions have been delayed and will now not commence until the 2019/2020 financial year.
  • The government has changed their mind on the removal of the work test for those aged over 65.

Further details on the latest revised superannuation proposals are available via the following link:

http://www.treasury.gov.au/Policy-Topics/SuperannuationAndRetirement/Superannuation-Reforms

A Financial Advice Health Check from The Financial Advice Shop will help you understand what it might all mean for you.

#superannuationchanges #superchanges