August 25, 2016

Will there always be an age pension?

With all of the talk about the need to be self-sufficient in retirement it’s not surprising that many people assume that the government-funded age pension will be phased out altogether sometime in the future. But will it? Both sides of politics have committed to retaining the age pension “for those in need”. The age pension is means tested using both an income and an assets test – the test that pays the lowest pension is the one that is used. Conclusion – The age pension will remain, but not for everyone There are two other aspects to the government’s retirement […]
August 18, 2016

Protecting your Will against challenges

Everyone understands the importance of a Will, but how do you ensure your wishes are carried out when you’re no longer around? Who can contest your Will and what are their chances of success? Maud’s four children hadn’t visited in years so she left her fortune to an obscure charity for wayward arachnids. An extreme example, certainly, yet many would argue that Maud’s wish to bequeath her estate to spiders should be respected. Fundamentally, Maud’s situation is common: lonely elderly person, charity, disgruntled family members. Who could challenge Maud’s Will and under what circumstances? Firstly, it’s important to note that […]
August 18, 2016

Taking more than you need from your nest egg?

A common way to measure the sustainability of retirement income is to calculate an annual withdrawal rate – the amount of income as a proportion of a retiree’s total capital. For instance, drawing an income of $4,000 a year from savings of $100,000 is, of course, a four per cent withdrawal rate. And a leading topic of discussion in the retirement services industry is identifying an optimal drawdown rate so that a retiree’s capital lasts as long as possible. Recently-published research from Vanguard in the US goes a step further by looking how much of annual retirement drawdowns by retirees […]