Retirement income adequacy trumps bequests to kids
Having a constant stream of regular income to cover essential needs has trumped leaving money to the kids, according to new research conducted by National Seniors Australia.
The research, published by annuities specialist company, Challenger, found that leaving money for the kids is no longer a top priority for older Australians with just 23 per cent of respondents rating it very important and only three per cent intending to preserve all their savings for an inheritance.
Challenger claimed these findings debunked the popular conception that leaving a financial legacy was a major concern for retirees.
“It’s time to put the inheritance myth to rest,” Challenger retirement income chair, Jeremy Cooper said. “Retirees have spoken and it’s clear that bequests are not the priority that many think they are. The need for regular income to avoid running out of money and, to pay for aged care and medical costs, is far more important for older Australians.”
“Bequests are not central to planning for their retirement and senior Australians are weighing these up against other trade-offs they must make to deal with longer lifespans,” National Seniors research director Professor John McCallum said.
“Having a constant stream of regular income to cover essential needs is the top priority for over 50s – 84 per cent rated it very important,” McCallum said.
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
