Retirement
Why most retirement tools miss the mark
Most retirement tools give members a false impression of their future retirement outcomes, with a more holistic view required, an expert has said.
Why most retirement tools miss the mark
Most retirement tools give members a false impression of their future retirement outcomes, with a more holistic view required, an expert has said.
According to Fiduciary Financial Services co-founder Andrew Crawford, retirement planning is too focused on building a nest egg instead of looking at retirement in its totality – being health, savings, income and what makes people happy in their retirement years.
“It means that instead of simply aiming to accumulate a big nest egg, broader questions need to be asked about retirement goals that go beyond a dollar amount.”
“Retirement involves being healthy and doing the activities people enjoy, of finding fulfilling ways to replace the time once spent at work while having the peace of mind of being able to afford it,” Mr Crawford explained.
Instead, traditional calculators focus on creating a larger pool for retirement, which Mr Crawford highlights is a flawed system, which could be narrowed down to how much do members need on a fortnightly basis to live the lifestyle they want.
“These planning tools also can ignore the fact people get their retirement income from multiple sources. Aside from super, it can be rent from an investment property, the Age Pension, or drawing down on the equity in their home.
“For example, understanding how much of the Age Pension people are entitled to can make a huge difference. Ensuring they get the maximum is important because it’s effectively a free lifetime retirement income stream.
“It’s often forgotten that people’s spending in retirement will change dramatically in line with their health. As they go from being healthy and active to requiring various levels of care, their spending can drop as much as 40 per cent – having a huge impact on how long and how much retirement income they need,” Mr Crawford concluded.
RELATED ARTICLES
About the author
About the author
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more
Retirement Planning
Planning systems under scrutiny as Australia's ageing population grows
The Retirement Living Council (RLC) has called for governments to address planning system shortfalls in preparation for Australia's ageing population, following the release of new data from the ...Read more
Retirement Planning
Retirement Living Council calls for focus on seniors' housing as population ages
The Retirement Living Council (RLC) has urged governments across Australia to prioritise age-friendly housing solutions in response to new data revealing an ageing population. Read more
Retirement Planning
Macquarie University study reveals benefits of guaranteed income in retirement
A new study by Macquarie University's School of Psychological Sciences has found that mental health, enjoyment, and financial security are key benefits of incorporating guaranteed income and annuities ...Read more
Retirement Planning
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today. Read more
Retirement Planning
Age-appropriate housing could reduce hospitalisations for elderly Australians, report finds
A new report from the Australian Institute of Health and Welfare (AIHW) has highlighted the potential benefits of age-friendly housing in reducing hospitalisations among older Australians. Read more
Retirement Planning
Retirement Living Council urges focus on seniors' housing as population ages
The Retirement Living Council (RLC) has called for a renewed focus on retirement villages as a key housing solution to cater for Australia's ageing population, following the release of fresh ...Read more
Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more
Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more
Retirement Planning
Planning systems under scrutiny as Australia's ageing population grows
The Retirement Living Council (RLC) has called for governments to address planning system shortfalls in preparation for Australia's ageing population, following the release of new data from the ...Read more
Retirement Planning
Retirement Living Council calls for focus on seniors' housing as population ages
The Retirement Living Council (RLC) has urged governments across Australia to prioritise age-friendly housing solutions in response to new data revealing an ageing population. Read more
Retirement Planning
Macquarie University study reveals benefits of guaranteed income in retirement
A new study by Macquarie University's School of Psychological Sciences has found that mental health, enjoyment, and financial security are key benefits of incorporating guaranteed income and annuities ...Read more
Retirement Planning
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today. Read more
Retirement Planning
Age-appropriate housing could reduce hospitalisations for elderly Australians, report finds
A new report from the Australian Institute of Health and Welfare (AIHW) has highlighted the potential benefits of age-friendly housing in reducing hospitalisations among older Australians. Read more
Retirement Planning
Retirement Living Council urges focus on seniors' housing as population ages
The Retirement Living Council (RLC) has called for a renewed focus on retirement villages as a key housing solution to cater for Australia's ageing population, following the release of fresh ...Read more
