Some statistics around planning for your financial future
There are just over 18,000 financial advisers with around 85% of financial advisers (that is, more than 15,000 of the 18,000 advisers) are associated with product manufacturers. In short, the bulk of the financial advisers in Australia are selling product rather than primarily providing financial advice – operating as salespeople rather than true professionals.
At Initiative Group we are not aligned with any product and pride ourselves on providing quality strategic advice.
Superannuation balances at retirement
With average superannuation balances at the time of retirement of the order of $197,000 for men and only $105,000 for women, it is clear that most recent retirees will need to substantially rely on the Age Pension in their retirement.
The average total superannuation balance for a household headed by a person aged 60 to 64 was around $238,000.
How much you need to retire comfortably?
Going on current life expectancy rates, Deloitte has calculated how much super you need to retire with a ‘modest’ or ‘comfortable’ lifestyle.
For men aged 65 today, they need $330,000 in superannuation to fund themselves to the tune of a ‘modest’ $22,654 every year. For women, who generally live slightly longer, they need $360,000 in superannuation assets to pay out the same amount every year.
For those who want a ‘comfortable’ lifestyle in retirement, the figures are nearly double. A man requires $590,000 to pay themselves $41,197 a year, while women need to have $660,000 in superannuation assets for the same.
New statistics released this week by the Australian Taxation Office (ATO) reveal that more than $14 billion in lost super is waiting to be claimed. There is over $6 billion of super sitting in accounts where funds have not been kept up-to-date with changes to personal details. An additional $8 billion in super is sitting in accounts that have not received a contribution in five years or more.
Are you managing your Superannuation effectively? Are you on target for a comfortable retirement?
If you would like a free no obligation appointment to discuss wealth strategies please click here or call (07) 5437 8888.
Stuart Long – Client Services Manager