Home-owning Baby Boomers with average super balances and investment accounts posted record gains of more than $240,000 last year as equity and residential markets boomed, according to Rainmaker Information, which monitors markets.
Home values rose by almost 24 per cent, superannuation balances increased by more than 15 per cent, and investment portfolios were up 17 per cent, according to Rainmaker’s analysis.are “frightening the wits” out of self-funded retirees attempting to achieve a comfortable retirement managing their nest eggs, according to the president of the Association of Independent Retirees.
Funder adds almost eight-in-10 retirees are also concerned about the possibility of the federal government introducing an inheritance tax, with another 73 per cent concerned their home would be included as part of an assets test.Analysis by Fidelity International, which has more than $8 trillion under management, highlights more than half of those with superannuation balances of $750,000 to $1 million are worried about funding their retirement.
“Many are living too frugally,” he says. “Dialling down the risk during retirement is reassuring, but you don’t want to overdo it.”Retirement experts provide their tips on how to spend and save during retirement:Shane Hancock, head of advice for AustralianSuper, which has about $260 billion under management, says those coming up to retirement – or in early retirement – need to lower the sequencing risk, or the risk of negative returns early in their retirement, when balances are largest.
Big withdrawals in a falling market can crystallise losses and limit the ability to recover losses when markets rebound.Access the equity in a home to meet long-term retirement needs. Household Capital’s Funder says the value of home equity saved in the family home is worth around three to four times a household’s super savings.An annuity is an insurance policy providing a guaranteed income stream over an agreed period. Major product providers such as AMP and Challenger offer the products.
“eight-in-10 retirees are also concerned about the possibility of the federal government introducing an inheritance tax, with another 73 per cent concerned their home would be included as part of an assets test” so 50% both get the pension and worry about an inheritance tax 🤷♂️
“Sure, the pandemic was awful, but financially it was brilliant for Boomers with a good job, a house, some super and maybe some investments” And what about the rest of us poor suckers? HousingCrisis
want to see me without a bra?
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Source: FinancialReview - 🏆 2. / 90 Read more »