There was a raft of announcements at the May federal budget that could impact the SMSF sector should the Senate pass these proposals later this year.
It can be challenging running an SMSF during these times of regulatory uncertainty. But Daniel Martinez, senior financial adviser and Authorised Representative of AMP Financial Planning, says the starting position is to assume the proposals will become law.
While the rules and legislation associated with superannuation may change from time to time, it is still among the most effective retirement strategies, and for many Australians superannuation is their main form of retirement income.
Setting aside time to regularly review your finances is one of the easiest ways to keep your plans on track and work towards achieving your financial goals.
We often find that it’s only as people near retirement that they really start thinking about their finances – especially when they start looking at everything that retirement offers, like making time for a hobby, more travel, volunteering projects or spending time with family.
If you are considering retiring or reducing your working hours in 2016 but are concerned about having enough money to retire on, it’s not too late to seek some professional advice to give you peace of mind.
Retirees and those nearing retirement with large superannuation balances and other assets and investments will likely be affected by new pension asset test changes, which passed Parliament on 22 June, 2015.
Liberum Financial, advise that under the new legislation, wealthy couples who own their own home and have over $823,000 in assets (not including the family home) will see their pension entitlements reduced or cut entirely.
Every quarter, the Association of Superannuation Funds of Australia (ASFA) research and publish their findings detailing the cost of living in retirement. The survey benchmarks the annual budget needed by Australians who own their home to fund a comfortable or modest standard of living in retirement. It provides detailed budgets of what singles and couples would need to spend to support their chosen lifestyle.
Some people may prefer to ease into retirement gradually by cutting back working hours and drawing some income from their super before they fully retire. They can do this by utilising the ‘transition to retirement’ strategy.
