I mentioned in Part 1 that there are a set of ‘old rules’ that applied before the ‘Living Longer Living Better’ reforms were introduced by the Federal Government on July 1, 2014. Those who decide to live in a Residential Aged Care home enter into a contract with the company. The contracts are different for those who entered a home before the reforms were introduced, and for those who fell under the ‘new rules’.
Most of the important things money can’t buy are obvious, but worth reflecting on. They’re a reminder of life priorities—and retirement priorities.
Almost 20 per cent of over-65s are still working full time or part time in the United States—that’s the highest level for more than 50 years, since 1962. And it’s financially driven, says Jean Setzfand, senior vice-president of AARP, the organisation that did the study.
More than three-quarters of 45 to 64-year-old Australians are ‘running blind’ concerning their retirement finances; half base their understanding of the amount of money they will need in retirement on a ‘total guess’, and a third rely on family members for their financial advice.
The good folk at YourLifeChoices have just released the June Quarterly Affordability Index. Its aim is to help you understand how much money you currently need to live at various levels and lifestyles in retirement.
Good or bad, you need to know what your financial situation is going to be in retirement. That came home to me after we had spent an hour or so with our financial advisor. Two things became clear to us: Our estimated income in retirement and, importantly, the understanding that with that income we would be OK financially. It wouldn’t be a fancy retirement, but we knew we’d do far better than merely survive.
When more than 1000 couples were asked how much they need to save to maintain their current lifestyle in retirement almost half had ‘no idea’. And, significantly, most couples weren’t on the same page about the amount needed. As a couple preparing for retirement, these are the kinds of things that need to be talked about. For your retirement’s sake and for your relationship’s sake.
Another RetireNotes.com podcast with Kym Piez and Bruce Manners. In this episode, we look at some of the basics of building your finances as you prepare for retirement.
I didn’t seek out a financial advisor until I was less than five years from retiring. That was a mistake. Let’s call that the first lesson learned. Unless you know about the world of finances and retirement, you’ll need help because it’s an extremely complex field.
The superannuation industry is made up of four different types of superannuation funds: Employer-sponsored funds, Industry funds, Retail funds, and Self-managed superannuation funds (SMSF). The SMSF part of the industry is the fastest growing section and, according to recent reports, it’s also the largest in terms of the total amount invested.