The May 2016 Federal Budget Will End Superannuation As We Know It

On 3 May 2016 the Australian Treasurer, Scott Morrison, handed down his first Budget and changes to superannuation were a core theme.

While there is plenty of focus on things that are perceived as negative changes, let’s not forget there are also some important changes that are potentially quite good news.

It is important to note that the Budget measures will not become Law unless Legislation to support the measures is passed in Parliament. Until that time, the Budget measures are simply a proposal.

A detailed summary of the 2016 Federal Budget has been prepared by The Financial Planning Association of Australia and is available via the following link:

2016 Federal Budget Summary

HOT TIP: In relation to superannuation reforms, most of the 2016 Federal Budget measures are planned for a 1 July 2017 commencement so there is plenty of time to plan.

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Are Australians Intending To Retire Later Because They Can’t Afford An Early Retirement?

It has been suggested in a recent Australian Bureau of Statistics survey that the proportion of Australians intending to retire later is increasing.

Some of the key survey findings include:

  1. 71% of people surveyed intend to retire at age 65 (up from 45% in 2005)
  2. 23% of over 45’s surveyed intend to retire at age 70 or over (up from 8% in 2005)
  3. 13% of women expect to rely on a partner’s income in retirement compared to only 3% of men

Do these findings suggest that everyone simply loves their job? Not necessarily, as the survey reveals that the major reason for working longer was ‘financial security’. This suggests to me that many people might retire earlier if they had the financial resources to do so.

The survey also revealed that for the majority (53%), superannuation was expected to provide the main source of their income in retirement.

Fortunately, when it comes to superannuation there are currently many things that can be done to improve long term financial security and the sooner actions are taken, the greater the opportunity for success.

HOT TIP: A successful retirement doesn’t just happen: you need to make it happen!

What should you do next? It’s really simple: if you are over 45 and serious about planning for a secure financial future, we are serious about assisting you to be successful.  Contact us today to see how we can help you understand things more clearly.

#superannuation #superannuationfees #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #earlyretirement

Superannuation Is Irresistible If You Combine Makeup, Features and Confidence!!

Superannuation for most people is an investment that is not really of interest to them until they are approaching retirement. Unfortunately, by then it is far too late!

The reasons for a lack of interest in superannuation are varied. It can be seen to be dull and boring, the Government keeps fiddling with the rules, it’s an investment that you cannot accessed as a lump sum until they reach preservation age and retire, and for some it is even seen as an extremely risky investment.  With this lack of interest comes a lack of focus to maximise final retirement benefits.

To be a successful investor you should take the time to study your superannuation fund choices, consider your contribution options, examine how to strip out excessive fees and commissions, and then make sure you invest cost effectively and confidently to achieve competitive long term returns with a level of risk you are comfortable with. Then, as you watch your investments grow over many years, it can be a beautiful thing so see it steadily become an important and significant retirement asset.

As current and future Australian Governments grapple with the issue of providing Commonwealth support in retirement, there is little doubt that future retirees will receive less in Age Pension entitlements than current retirees. The reason for this is simple: as the Australian population ages there is a shrinking percentage of working people who are paying taxes to support the retired population.

When it comes to superannuation, many women are at a significant disadvantage. Women often put family before career, have breaks in employment and are not always employed in roles that reflect their true capabilities.  Over a working life, the negative effects of a fragmented working career on superannuation balances for women can be very significant.

There are two clear options for everyone with superannuation: do something or do nothing. Anyone who chooses to do nothing is foolish and should brace themselves for the ultimate consequences of a poor standard of living in retirement.

For those who have the energy and motivation to do something positive and would like to be successful, it is time to take action! You have many choices at your fingertips and with careful research, sound financial advice and an appropriate action plan including regular additional superannuation contributions, you have a real chance of being successful.  Importantly, the sooner you start planning, the more likely you will be successful with your retirement planning.

What should you do next? It’s really simple: if you are serious about planning for a secure financial future, we are serious about assisting you to be successful so contact us today to see how we can help you understand things more clearly.

#superannuation #superannuationadvice #retirement #womenssuper #retirementplanning #financialadvice #retirementadvice #financialplanner #financialadviser #financialadvisor #irresistible #makeup #confidence #investing

The Savings From A Plummeting Oil Price Mean You Should Think About Your Super!

It’s easy to pocket the savings from a falling oil price when you are filling up your car and then find something to spend those savings on.  Unfortunately, many people will waste the opportunity and spend the savings at the Boxing Day sales.

It’s expected that Australian’s will spend around $2 Billion this year at the Boxing Day Sales.  In anyone’s language, that’s a lot of money but not as much as the $14 Billion the Tax Office currently holds in Lost Super.

When you are handing over your hard earned savings at the Boxing Day sales, remember that for every $100 you spend, you could have contributed much more than that to your super via salary sacrifice if you are on a reasonable income.

Hot Tip:  The sooner you get some sound advice and start making regular voluntary contributions to your commission free super account in a tax effective way, the sooner you will reap the significant long term rewards.


Have You Struggled All Year To Find Time To Consider Your Financial Planning Needs?

Now is your opportunity to take action and talk to a Certified Financial Planner!

It is a well know fact that most people lead very busy lives and do not always have time to properly consider and plan for their financial future.

During the Christmas period when most businesses close down for a few weeks, The Financial Advice Shop will be continuing to take calls, answer your emails and make appointments. If this is the opportunity you need to start planning for the future, call today to see how we can help you.

With low fees and sound advice, we are the Central Coast Financial Planning specialists.


If You Receive Financial Planning Advice, Mortgage Advice, Or Insurance Advice From A Business That Also Owns The Product, Are You Guaranteed The Best Deal?

It might be very convenient to receive a number of services from one organisation and to also use their products, but the reality is that you may do much better by shopping around.

Hot Tip: Always shop around and test the market with a few service and product providers before making a final decision to purchase or invest in anything.