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Retirement the ‘number one trigger’ for financial advice

Approaching retirement still remains the top reason for seeking advice from a financial planner, with healthcare costs, outliving their savings and aged care costs some of the biggest concerns, according to a recent research paper.

 

A research paper developed by Fidelity International in conjunction with the Financial Planning Association of Australia and CoreData, has found that approaching retirement is still the number one trigger for people to see a financial planner.

The Building Better Retirement Futures paper found that almost a third or 31.7 per cent of those who currently receive it as and when needed, nominated approaching retirement as the reason they sought advice.

This was a greater trigger than buying a property at 23.1 per cent and significantly more likely to make people see a planner than coming into a substantial sum of money at 9.8 per cent.

“Around half of these people or 46.7 per cent, seek advice specifically to help them plan a better retirement, as distinct from the more general aims of help with investing and help with managing or growing wealth,” the paper stated.

The paper noted that clients who are nearing retirement find themselves dealing not only with the financial aspects of helping them lead a comfortable and dignified life in retirement, but the emotional and psychological impacts of transitioning into retirement as well.

“Despite the best-laid plans and the most strongly held expectations, around half of Australians do not retire for the reasons they think they will, nor at a time of their choosing,” the research paper said.

The research indicated that in terms of worries in retirement, health was overwhelming the highest at 47.2 per cent.

The research paper noted that those who retired involuntarily due to health issues are likely to have lower incomes to begin with, and that lower incomes are correlated with lower superannuation balances.

“Also, those who have long-term health problems will likely face additional health expenditure in retirement, especially when pharmaceuticals are involved,” it said.

The next biggest worry was outliving retirement savings at 12.2 per cent and aged care costs at 9.9 per cent. Nineteen point three per cent of the respondents stated that they had no worries and were very comfortable in retirement.

 

 

Miranda Brownlee
06 January 2021
smsfadviser.com

 


David Forrest Download David's Adviser Profile

David Forrest

Director
BEc (Acc), MBA, CPA, FFin

David has been in the Financial Services Industry for nearly 30 years. He was one of the founding Directors of the successful Financial Planning and Stockbroking Practice, Henderson Gregory Forrest, for a decade. Prior to that, he held senior roles in companies such as ING, KPMG Accountants and AMP. David was previously Chairman of OAMPS Superannuation Trustee Board and currently serves as an independent Board Director for several companies.

David’s extensive experience in all forms of superannuation, including Self Managed Super Funds (SMSF), Defined Benefit Funds, retirement funding through Account Based Pensions, stockbroking with a focus on Direct Share Investment, Taxation/Remuneration Planning, Centrelink, Aged Care and business management, equip him to advise expertly on all aspects of Financial Advice.

Those with a particular interest in superannuation/SMSFs, direct share investment, salary packaging or applying for the Centrelink Pension will find his knowledge and ability in formulating and implementing creative, logical and simple wealth creation strategies a valuable asset.

David maintains a strong personalised client service focus, providing tailored solutions for clients.

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David Forrest is an Authorised Representative of Integrity Financial (SA) Pty Ltd ABN 16 133 921 187 — AFSL No 334846

Michelle Forrest

Michelle Forrest

Business Finance Manager
B Bus (Acc), CPA

Michelle’s career has spanned across the Financial Services, Retirement Living and Aged Care industries working in the private sector, not for profit and more recently with the state government for over 20 years. Her experience extends to many facets of the financial services industry, having worked in superannuation administration, technical support and financial planning practice administration.

Commencing with AMP and subsequently working in commerce and accounting roles with companies such as Brambles, Adelaide Bank Retirement Services, ECH Inc and SA Health and Wellbeing, Michelle returns to financial services after working in practice financial management at Henderson Gregory Forrest. This wide range of experience from senior accounting and management roles has provided Michelle with a strong background in business administration.

With an astute financial acumen and keen interest in business improvement strategies, Michelle ensures the smooth running of the Integrity Financial Advisory practice providing valued management support to our personalised client service focus.

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Jasmine Smith

Jasmine Smith

Client Service Manager

Jasmine has worked in the financial services industry for over 12 years in all areas of client administration, working with David since 2013.

Jasmine has extensive knowledge and experience in client service including implementation of advice, portfolio reporting, assisting with the establishment of Self Managed Super Funds (SMSFs), term deposit management and a long history of helping clients with their enquiries.

Jasmine’s attention to detail, yet gentle approach, means she is able to solve the trickiest of questions for our client community.

Jasmine has gained her Certificate III in Financial Services qualification.

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Merrilyn Smith

Merrilyn Smith

Senior Client Service Manager

Merrilyn has worked in the financial services industry for over 11 years in all areas of client administration, and is a new addition to our client services team, returning from Melbourne to join the team in June 2019.

Merrilyn has extensive knowledge and experience in client service including implementation of advice, managed fund administration, assisting with the establishment of Self Managed Super Funds (SMSFs) and process improvement for the previous practices she has worked with. Merrilyn’s experience with direct shares constitutes the other part of our administrative support for direct equity investments.

Merrilyn’s warm and caring nature continues to endear her to our clients and she has already established herself as a valued member of our team.

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