The government has received the report from the Royal Commission into the banking industry and the news is scathing. There will be massive changes to the industry, assuming the government heeds the advice of High Court justice and royal commissioner Kenneth Hayne for a number of major reforms. The reforms are wide-ranging and will impact almost everyone at some level. Here are some of the key issues that will impact consumer banking and financial services.
Tagged With superannuation
It's not a myth. The gender super gap is a scary reality facing women across Australia, leaving them with thousands of dollars less than the average man at retirement age. However, there are some simple tips you can follow today that can help to bridge the gap between men and women’s superannuation balances.
One of the best things about employment in Australia is superannuation. Under current laws, employers must pay 9.5% of your salary into an approved fund that is set aside for your retirement.
But with the age at which you can get the pension rising from 65 to 67 over the next few years, many people having larger mortgages than ever before, and life expectancy increasing, the amount of money needed to live comfortably after leaving the full-time workforce is a challenging question. So how much money do you actually need at retirement?
When you first start out in the workforce, superannuation doesn't seem particularly important. It's something that only affects you at retirement age - which isn't something the average twenty-something likes to think about. Fortunately, preparing for this far-off future doesn't take much time or wherewithal - and the benefits can be significant.
The Abbott government's deal with the Palmer United Party to freeze the minimum superannuation contribution rate at 9.5% until 2021 will not only cost retirees, it will also see future governments forced to bear the brunt of an increased reliance on the Age Pension. There has been considerable discussion of the impacts of the deal on both the wages of workers and their retirement savings. However, asserted effects have been either speculative (in the case of wages) or limited to a few hypothetical examples (in the case of retirement savings).
There's no shortage of advice for ways to retire comfortably, yet actually setting yourself up for it can be a different story. Believe it or not, building wealth to retire financially comfortable is actually simpler than we think. The challenge doesn't lie in the knowledge - but instead translating that knowledge into results that are meaningful.
Hey guys, I have a tricky ethical question for you. I'm going over my superannuation account, and looking into investment options. My fund offers a socially responsible investment (SRI) option, and a high-growth option. Looking at the trends over the last 10 years, the SRI has kept more or less on par with a balanced investment.
"Why should a 20-something bother thinking about their retirement?" This was my mentality up to the age of 23. I wanted to live in the 'now' and being 60 was simply unfathomable. Anyway, what if I get hit by a bus next year? Then I would have been squirreling away extra money for nothing. My employer already makes contributions to my retirement, so that will be fine.