Pension changes will impact retirement adequacyBY KERRIE SYDEE | FRIDAY, 12 AUG 2016 12:32PMImpending changes to the aged pension asset test thresholds will have a significant impact on the number of couples able to achieve a comfortable retirement, according to new research from Willis Towers Watson (WTW). Related News |
Editor's Choice
ASIC flags gaps in super fund valuations
|ASIC has called for stronger scrutiny of unlisted investments after finding persistent weakness in how some superannuation funds and auditors assess asset valuations, raising concerns about the accuracy of members' retirement balances.
IMF sees inflation above RBA target through 2027
|The International Monetary Fund (IMF) has projected Australia's inflation to ease to 3.1% in 2027 from 3.9% this year, leaving it outside the Reserve Bank of Australia's (RBA) target range of 2% to 3%.
Treasury consults shifting tax debts from victims to abusers
|Treasury is consulting on extending the powers of the Australian Taxation Office (ATO) to strengthen its response to financial abuse.
Former adviser defies permanent banning orders
|Former financial adviser Ezzat Daniel Nesseim has defied ASIC's permanent banning orders and is in the process of being prosecuted.
Further Reading
Products
Expert Feed
When geopolitics becomes a portfolio risk
Geopolitics is back - again - and Australian investors can no longer treat it as distant background noise.
Does association membership still matter?
With all the changes the advice sector has experienced in recent years, such as regulatory reform and increased education and professional standards ...
Digital assets and where they stand in 2026
So far in 2026 digital assets have captured the headlines largely for the wrong reasons, but that doesn't tell the full story.
Rethinking default design in a changing market environment
The evolution underway in the US DC system highlights the value of periodically reassessing default design assumptions.
Featured Profile
David Sharpe
CHAIRMAN
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
FINANCIAL ADVICE ASSOCIATION AUSTRALIA
A family man, business owner, cricket fanatic and financial adviser, David Sharpe has many facets. One of his biggest legacies, as he steps down as chair of the Financial Advice Association Australia, is leaving the profession stronger than he found it.
The Financial Standard podcast Tune in each week as we discuss the latest developments in Australia's wealth management industry. |  |
Mr Rundeman of IOOF says that in addition to loss of the pension, mid-range wealth retirees will have '$600 to $700' of additional expenditure' through loss of concessional benefits.
State benefits vary from state to state but to take NSW as an example, I estimate that the loss to me and my wife of the pension will cause an additional expenditure of at least $2000-$2500 per annum through loss of other benefits.
For example: Car registration (now free) +$350; Water charges (pensioner rebate) p.a. +$600; Rates (pensioner rebate) p.a.+$250; doctor (loss of bulk billing) (4 visits each p.a.) + $200, medical procedures (regular scans for hip and DVD) (loss of bulk billing) +$250; loss of pensioner entertainment discounts for tickets (2 people) + $400. One of our few joys is the annual opera in the park for which pensioner tickets are almost half price. Attending in future would be $200 extra alone.
I have been very disappointed at the standard of debate and the ignorance of politicians on this issue. Just for starters no one ever takes into account that there is only one pension for a couple, but there two people who will have to pay.