Flexibility urged on retirement age
Australians need to adopt a more flexible approach towards retirement age in circumstances where most still do not have enough to fund a comfortable retirement, according to Ibisworld founder and chairman, Phil Ruthven.
Addressing the Association of Superannuation Funds of Australia conference in Melbourne, Ruthven suggested that 65 was probably too early to retire, given Australians’ increasing longevity and average account balances.
He said this was in circumstances where people needed $900,000 in investable assets to fund a comfortable retirement in the order of $45,000 a year.
Australians needed to accept the need to work longer and the manner in which they worked, including as consultants and contractors.
Ruthven said Australians needed to come to terms with the fact that they were not going to be able to rely on the value of their homes to generate a comfortable retirement.
As part of his presentation, Ruthven pointed out that Australia was fast reaching the stage where the combined superannuation and other wealth assets held by households were going to exceed the value of their homes.
He said this was a good thing in circumstances where homes needed to be regarded as a passive asset and where shares were always going to generate a higher level of return.
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
