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Retirement Income Streams

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The big questions facing retirees

Retirees are facing financial challenges including dealing with inflation, handling volatile markets, and getting appropriate advice. Building a retirement plan that can withstand these challenges is key for 2024 and beyond.

Robert Merton on retirement incomes and Jane Austen

1997 Nobel Laureate Robert Merton wants greater focus on the income that will sustain a retirement, and even Jane Austen understood this. And he has a surprising proposal to help with longevity risk.

Lifetime income tackles retirement timebomb

The traditional asset based pension is not usually sufficient to provide a total income that keeps pace with inflation, even with the help of the age pension. A real lifetime pension is one way to preserve old age dignity.

Accessing super before retirement

Transition to Retirement Income Streams are no longer tax-free, but you can still access your super before retirement if you meet certain conditions, and there are strategies to reduce the tax paid.

Defined benefit pensions and the transfer balance cap

Defined benefit pensions once meant sitting back and enjoying the guaranteed income flow for life, but their treatment under the new pension rules is a potential minefield.

Robert Merton on retirement incomes and Jane Austen

Nobel laureate Robert Merton wants us to focus on the income that will sustain us in retirement, even Jane Austen understood this. And he has a surprising proposal to help with longevity risk.

Keeping track of 'superannuation interest' is critical

A unique feature of SMSFs is the concept of 'superannuation interests' which must be monitored to keep track of the taxable components in a super fund. Good records can avoid problems later.

Investor behaviour and lump sum bias

Many factors contribute to a lump sum bias among investors, and it might be one reason why they significantly overestimate how much a lump sum is worth in annual income for life.

Changes to Centrelink treatment of account-based pensions

Get ready for more pension-related changes: from 1 January 2015 the way account-based income streams (including account-based pensions) are assessed under the income test for Centrelink purposes will be changing.

Post-retirement income: the drums are beating

Less than 15% of Australians will enjoy a 'comfortable' standard of retirement with just their super. The age pension doubles the numbers, but there’s an even larger increase if other savings are included.

Caveat Emptor: Lifetime annuities versus indexed bonds

A reader sent in an excellent question on the merits of lifetime annuities versus long term indexed bonds for post-retirement income. Jeremy Cooper and Elizabeth Moran make the case for each.

The 4% Rule for retirement withdrawals may be too high

Australian research on retirement withdrawal rates challenges the long-accepted ‘4% Rule’ used by many planning professionals when advising self-funded retirees. The optimal rate? Well, let's start a conversation.

Most viewed in recent weeks

It’s time for LICs to die

A high-profile dividend cut and a prominent fund manager’s apology have reignited a long-running debate. If investors can access similar exposures more cheaply and efficiently elsewhere, what exactly is keeping LICs alive?

Testamentary trusts survived the trust tax. The drafting battle has just begun.

The fight over testamentary trusts looked settled. Then the draft legislation arrived. Hidden in a technical detail is a question that could force many families to rethink wills they thought were already future-proof.

The new capital gains tax trap for your portfolio

Investors have long accepted one portfolio rule without much question. A major tax shift could change that calculation entirely, forcing difficult trade-offs between risk, discipline and an overlooked cost lurking beneath.

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

How the typical Australian Family could save $844,350 in taxes

The value of a testamentary trust is not determined by wealth alone. Depending on circumstances, it can reduce the tax burden on inherited income, create efficiencies and help build intergenerational wealth.

The housing slide could become a crash

House prices are sliding across Australia, yet the most dangerous ingredient for a housing crash is still missing. If job losses surge amid growing economic risks, today's correction could become a historic property downturn.

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