Get ASX Price


Latest Financial Planning News
Articles archive
Quarter 1 January - March 2016
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 4 of 2014
Articles
We wish all our clients a Merry Christmas,a Happy New Year and a restful holiday
A great overview of investing and good Holiday reading.
The final nail in the coffin for LRBAs?
Market Update – November 2014
Online financial tools your family and friends can use.
Overcoming our behavioural barriers to saving
‘Unintended consequences’ threaten SMSF tax reform
Retirement income: every bit counts
ASFA continues to sound warnings on retirement savings
Market Update - October 2014
The little-known rule with huge implications for self-managed super funds
Grappling with the uncertainties of retirement
Change to ATO decision relevant to SMSF in-house assets
Taking a personal perspective on the global super challenge
Some terms defined - Super & Investment
The perils of market-timing and over-confidence
Market Update – 30th September 2014
Hardly a do-it-yourself job
Super insurance: wide coverage, limited understanding
ASIC eyes SMSF loan sign-off
Redesigning retirement incomes policy - from the ground up
Retirement income: every bit counts

 

Not many people probably believe that money buys happiness.


However when it comes to retirement incomes, every bit extra can make a worthwhile contribution to a retiree's lifestyle.



       


 


"Numerous research studies have shown that even a modest increase in income in retirement can result in significant improvements in retiree satisfaction," emphasises a new report (PDF) by the Association of Superannuation Funds of Australia (ASFA).


And the report points to research by specialist researcher Investment Trends showing the difference $5000 a year in extra income can make to a retiree. For every $5000 of additional income, retirees surveyed felt their lifestyles had noticeably improved.


As ASFA notes, just $5000 a year in income from a superannuation fund boosts a single retiree's income by 25 per cent against the Age pension alone. This could have a significant impact on a retiree's standard of living.


And with each extra $5000 in retirement income, a retiree's lifestyle potential improves.


Key points worth making here include:


  • Even modest super savings can make a critical difference to retirement incomes and retirement lifestyles.
  • It is important to look beyond the total dollars in a superannuation account to the actual retirement income that those savings are likely to produce. Such a focus on retirement income may provide a practical incentive to contribute more to super while still in the workforce

Superannuation calculators, such as Vanguard's Superannuation retirement calculator, can provide a valuable insight into how much retirement income your super savings may produce.



By Robin Bowerman
Smart Investing
Principal & Head of Retail, Vanguard Investments Australia
18 November 2014


 




1st-December-2014
 

Diamond Financial Solutions
Charter Financial Planning Limited ABN 35 002 976 294
Australian Financial Services Licensee Licence number 234665
Principal Address: 750 Collins Street PO Box 2830 Melbourne Victoria 3001
Legal Disclaimer
Charter Privacy Policy | Financial Services & Credit Guide
Site Map