Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
So what do the stats say about Australians and retirement?
It you look at Warren Buffett at a spritely 89 years of age and his right hand man, Charlie Munger, 95 still steering the ship at ‘Berkshire Hathaway’, we can all be optimistic. Australians are retiring later, with approx. 86% retired by the age of 64.
However the stats say that many wont get a choice as to when they retire. Approx 20% of retirees are forced to do so because of poor health. So the strategy of not saving for retirement, with a view to working on is a dangerous path to follow.
Many also retire involuntarily to look after sick relatives or where they are laid off work, especially between the ages of 60 - 64. For people that involuntarily cease work under the age of 55, 75% are males and 40% are females.
On top of this, the majority of Australian retirement saving are made in the last decade of their employment, due to the power of compounding. Naturally, where this is cut short, many of these retirees will have inadequate saving for the retirement lifestyle they aspire to.
So lengthening life expectancy, inadequate savings for retirement and involuntary retirement will continue to be a problem. It is only recently that only approx. 50% of the population made it to age pension age and on average if they did so, only lived for a further 10 years.
Now the vast majority of Australian will make it to age pension age (now 67) and will live for a further 20 years on average or close to 90 years of age.
So the message is, start saving and do it earlier.
”A good hockey player, plays where the puck is. A great hockey player, plays where the puck is going to be.” - Wayne Gretsky.