Common Misconceptions About Retirement in Australia

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Common Misconceptions About Retirement in Australia - BUSTED! 🚨
In this video, we’re diving into some of the biggest myths about retirement in Australia that could cost you BIG if you don’t know the facts!
Here’s what we’ll cover:
1️⃣ Relying solely on the Age Pension? Think again! The Age Pension is more of a safety net than enough to cover a comfortable retirement. Spoiler: You’ll need more savings!
2️⃣ Plenty of time to save later? Not really. The earlier you start, the less you'll have to save each month. (The power of compound returns).
3️⃣ Expenses will drop in retirement? Not so fast! Healthcare, travel, and life surprises can add up. Better to plan for more than less!
4️⃣ Downsizing to save the day? Maybe, but don’t count on it being a quick fix. Property market swings, stamp duty, and other hidden costs can cut into your plans.
5️⃣ Superannuation will cover it all? Not quite. Keeping an eye on your contributions and super performance is key to making sure you're on track.
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About Jarrad Brown:
Jarrad Brown is an Australian-trained and experienced Fee-Based Financial Planner with the Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to Australian expatriates in Singapore. Subscribe to this RU-vid channel for his latest tips and updates for Australian expats when it comes to making informed financial choices for their time abroad. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd - No: 200305462G | MAS License No: FA100035-3
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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.

Опубликовано:

29 сен 2024

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Комментарии : 49

@MadRX 20 дней назад

Although I agree with a lot of what you say and have personally followed a similar path, investing early, many financial advisors throw around figures like $2 mil and $100k per annum incomes in retirement like this is the norm for alot of Australians, lets be honest, most people watching this video are earning less than $100k pa in full time employment, paying for mortgages, raising kids etc etc, I have no doubt they could live comfortably on $60k net if they own their home and the kids have moved out. We are very lucky in Australia and if you are able to put a little into super, with a top up from the pension you can quite easily achieve this without having millions saved, life is about balance and as you say, working out what your own goals are

@AustralianExpatFinance 20 дней назад

You've summed it up beautifully in the last sentence. It's about working out what YOU want to achieve, and designing the roadmap to get there. There is no one size fits all approach - there's averages - and people spend a lot more than they think on discretionary items. Ultimately, it comes down to making informed decisions to achieve YOUR goals - whatever they may be.

@pauls8456 23 дня назад

You are young, I suspect you can’t comprehend how anyone can run a house on the pension and be happy but many do. Forget the ‘comfortable’ definition try the ‘happy’ definition. Many people retiring now had a significant chunk of their work life without the benefits of superannuation and will spend some of their later life on the pension. You and other financial advisors constantly push ‘other investments’ and ‘you need a million today’ - as you have admitted people don’t have this level of assets and lower amounts of super and the pension will have to be enough…..

@AustralianExpatFinance 23 дня назад

Thank you for the kind words Paul ;) Having worked with many retirees I’d like to think I have some idea. While I fully appreciate that many CAN run a household and live a happy life on the pension, I expect that if given the choice to plan ahead and live a long, happy retirement on a their terms, I’d suggest many would choose this path. I’d also suggest that whilst happiness may not be directly linked to finances, that there is a strong connection with freedom of choice, which typically comes with having more resources than the Age Pension alone. As always, it’s important to run your own numbers and build your roadmap to get to the life you want to lead.

@pauls8456 23 дня назад

@@AustralianExpatFinance yes all true, my point was really that retirees for the next 5-10 years have lived in a work environment with a fair portion of their work life without superannuation. The large majority of them will rely on the pension in part and eventually completely as they did not get the opportunity to have a full working life with 11%ish going in from their employer. And while they may have been able to buy a house they did I it in a very high interest period - my first mortgage was at close to current credit card percentages. The high amounts ‘required’ to retire just put people off retiring and apart from downsizing it’s all a bit too late to earn more $ to add to your super balance.

@AustralianExpatFinance 23 дня назад

@@pauls8456 Yes, you're spot on - super has only been mandatory for the past ~30 years, but as a society (globally - not just in Australia) we need a much stronger focus on financial literacy. Credit cards, taxation, home loans, and yes - retirement planning, all need more attention.

@AustralianExpatFinance 23 дня назад

Further to this, many will run their own business (as is extremely common in Australia) or work abroad as Australian expats, where in many cases nobody is contributing to their retirement fund for them. It's often up to us to take action, rather than solely being reliant on employers or Government Age Pension wherever possible.

@johnsudholz3445 7 дней назад

My parents live solely on government pension, they traveled north in winter for 2 months as gray nomads do even going overseas to Bali and couple time to Thailand . Yes their not traveling first class they do live comfortably on a pension. I personally lived in Thailand a very luxurious lifestyle for 500 au per week .

@pkd6369 10 дней назад

started property at 17 years old ,YOU HAVE TOstart early as you can,Admittedly a block of land in gosford sydney was $4000 dollars my wage was $100 a week , but lived at home.,now 70 and owe nothing and live well after many steps with houses and industrial properties, money was easy to get in 80"s 90"s as you knew your bank manager.used one fin advisor in sydney a couple of years ago "waste of time and upfront fees " as he gambled on tin pot companies and so did everyone else.......should have purchased QNE Berkshire hathaway shock 12 years ago was approx $120,000 u.s.d Now 2024 approx $715,000 u.s.d !

@AustralianExpatFinance 9 дней назад

Thank you for sharing, and great to hear your story of starting with property early. I would like to highlight that the vast majority of Financial Advisers certainly do not recommend 'tin pot' companies - perhaps back in the 80s and 90s when the industry wasn't what it is today.

@anthonypoole6507 22 дня назад

The one thing I have learnt in my 62 years is that financial advisors are just that….. advisors Very few picked the crash in ‘87, the Asian financial crisis, the tech meltdown or the GFC Let’s be real you don’t have a crystal ball

@AustralianExpatFinance 22 дня назад

Thanks for your note here Anthony. Firstly, I’m sure it didn’t take you the full 62 years to learn that Financial Advisers aren’t clairvoyant. In all seriousness though, in times of financial crises, often the best Advisers are the ones helping their clients to avoid irrational decisions and capitalise on opportunities.

@Dani-jq6db 25 дней назад

Mate, the age pension for single a touch over $250 a week , don't worry about travel that's not even enough for petrol, groceries and bills etc.

@AustralianExpatFinance 25 дней назад

The full age pension is actually closer to $570 per week, but your point remains a very valid one. We’re not leaving a lot here for any sort of discretionary spending.

@emmett3067 11 дней назад

@@AustralianExpatFinance As well it shouldn't. The aged pension in Australia is a social safety net. It is to support a basic living.

@AustralianExpatFinance 11 дней назад

@@emmett3067 Indeed it is.

@bruiser6479 14 дней назад

I worked for Social Security / Centrelink for 19 years. I can categorically assure people that you really, really don’t want to have to rely solely on the Age Pension in retirement. I saw a number of people who did that, and it was a pretty miserable existence for them. The means test is designed to ensure that you will always be better off financially having more income and assets. Where the asset rich people came a gutser was when they have no liquidity. For example they had a large, expensive property that was classed as an assessable asset. This usually was a farm or hobby farm larger than 2 hectares they couldn’t derive enough cash flow to provide for themselves.

@AustralianExpatFinance 14 дней назад

Thank you for sharing your insights here. It's so important for people to run their own numbers and work out exactly how much they'll need, and plan ahead.

@markandkim66 24 дня назад

When it comes to #2, it's amazing how many people start to take their super way too late into their working lives, and as a consequence end up with very little super to live off, or end up working way longer than what they'd like. My advice, put money into super from the day you start working, you'll have plenty to retire on and be able to retire way before pension age.

@AustralianExpatFinance 23 дня назад

Very wise words. The right age to start saving for your retirement is when you receive your very first pay. The power of compounding is truly quite remarkable.

@jonahtwhale1779 23 дня назад

No, parents should start a superfund for their kids at birth and contribute until the kid turn 18.

@AustralianExpatFinance 23 дня назад

@@jonahtwhale1779 - I'm certainly a big fan of putting money away for your children from birth, whether it be for retirement or other key milestones.

@yenriver5255 22 дня назад

I envy you living in Singapore with all the good food! I lived in Singapore as a kid. I missed all the yummy food!!!!!!!! I still go and visit my relatives......sounds bad but food first LOL.

@AustralianExpatFinance 22 дня назад

Absolutely! The food in Singapore is truly superb.

@catherineH4785 15 дней назад

There is an advantage to having a pension card, which you will receive if qualifying for the smallest amount of pension. Therefore working out your income and assets to just qualify would be an advantage. I am not an expat working in Singapore or ever was, but $80,000 per year would be more than I have ever earnt. However I can see that $1 million in savings/super would be good.

@AustralianExpatFinance 14 дней назад

Thank you for sharing Catherine. It's certainly an important point to consider the additional benefits other than just the actual income received with pension eligibility.

@michaelsecomb4115 23 дня назад

I put an extra $50 a week into super for over 20 years. It made a huge difference. Another option is to downsize by moving out of the city to a regional or rural town. Many are doing it. Definitely supplement the age pension with some extra income.

@AustralianExpatFinance 23 дня назад

I do love hearing stories like this. I'm sure you didn't even miss that $50 each week, but it made a monumental difference to your super balance 20 years later. Fantastic work!

@Woodland26 22 дня назад

I am self employed so have to put away super myself. Didn't think much of it in early days, busy with children and mortgage. Anyway just turned 60 and will start to work less and do TTR. So I will have both income and 4% money from the TTR account.

@AustralianExpatFinance 22 дня назад

Thank you for sharing. It can be challenging for those self-employed to actively contribute over time, but it’s so important to build this habit. Glad to hear you’re making the most of the TTR strategy also.

@michaelmacnab8877 22 дня назад

Do you believe that we are living in a time that nothing changes..... run whatever numbers you want but the world economy is just about to catastrophically collapse

@AustralianExpatFinance 22 дня назад

Thanks for sharing Michael. If you could drop me a note a day or two before, that would be much appreciated.

@sjdtmv 23 дня назад

That $2,000,000 savings, you have to allow CPI increases over those years, so over 30 years that $2,000,000 may need to be $5,000,000 with the same buying value in 30 years time, and the Govt announced that they will be including addition taxes on super over $3,000,000 some time down the track

@AustralianExpatFinance 23 дня назад

Yes, you're quite right with regard to the super changes, albeit we'd hope to see some indexation (common sense) applied to these changes. In terms of the savings and inflation, this is exactly why you can't 'save' your way into wealth, and instead have to ensure you're investing and putting your money to work.

@henribuhagiar9445 20 дней назад

Rental income in Victoria is a joke. Taxes etc leaves you in the negative. I sold my rental property

@AustralianExpatFinance 20 дней назад

Yes, you're spot on here at the moment. Most rental yields for houses are 6%, most investors are in a negative cash flow position. It's always important to run your numbers and assess whether the negative cash flow in the short to medium term is worth the long-term capital growth over time.

@confuzsays7196 19 дней назад

I want to use some of my super to payout my mortgage but keep working. Im 62. Can i do this?

@AustralianExpatFinance 19 дней назад

You would need to meet a condition of release to access super such as reaching age 60 and ceasing an employment arrangement, or consider commencing a Transition to Retirement Strategy. In either case, I would recommend speaking with your Financial Adviser to explore what your options are and what's going to best suit you.