The great retirement challenge

No More Practice Education

Over the past 30 years the percentage of living expenses the age pension covers has dropped from 90 per cent to 37 per cent. With no guarantee this will continue going forward, we’ve collaborated with BT Financial Group, featuring insights from ASFA and McCrindle Research, to explore solutions to this challenge and understand what’s really at stake.

“The challenges of retirement planning are greater than they’ve ever been; not only are we living longer, our expectations of lifestyle today are vastly higher and the pension contributes significantly less,” Jessica Brady, head of licensee development, BT Group Licensees said.

“In producing this series with No More Practice Education, we want to ignite the retirement planning conversation and highlight the vital role advice plays in giving people the retirement they deserve.”

Watch the retirement planning videos to discover what you can do today to assist your clients to live the tomorrow they want.

 

 

 

Solutions to Australia’s retirement crisis

Financial advisers have a key role to play in addressing retirement planning challenges, and ensuring their clients live comfortable and dignified retirements. No More Practice Education in collaboration with BT Financial Group explores common retirement challenges and the strategies you can apply to help both accumulator and retirement stage clients prepare and save.

 

 

The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here.

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Max Macleod

24/08/17

Can you please identify the statistics from which you sourced the data on which you base your claim the Age Pension now only covers 37% of retirement living expenses? Thanks to the misdemeanours of certain institutions the Financial Planning industry already struggles to retain credibility with clients and potential clients. This relevance is made all the more difficult when extreme claims such as the above are used to scare and confuse those preparing for retirement. - According to the latest ASFA figures an income of $59,917 would provide a couple with a "comfortable" retirement. Should they be capable of receiving the maximum Age Pension then this benefit would represent 58% of their nominated income needs, not 37%. - The latest HILDA report (2017), identifies the median expected retirement income for a partnered couple as $52,096. In which case, were they receiving the maximum Age Pension this would represent 67% of their needs. M

No More Practice Education

24/08/17

Hi Max,

Thanks for the comment and for your interest in the Wealth Transfer Report.

The figures you’re referring to in the research were based on the McCrindle team’s own research (an extrapolation of the population of over 60s multiplied by the additional seven years of life expectancy per person); CBA analysis of ASIC’s MoneySmart retirement planner (2015); and research from the Australian Government, Department of Human Services, on the payment rates for the age pension (2016). All of these sources are referenced in the footnotes in the full report online.

As confronting as these figures are we hope that they will spur more people (both advisers and consumers) to take action and control over their retirement.

Regards,
The No More Practice Education team

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