Financial Tools
  Client Portfolio Access
  New Client Kit
  Enquiry / Seminar Registration
Hot Issues
Younger SMSF members
SMSF Specialist wanted
Aged Care
Crowd control
Philanthropy upswing
Market Update - 28th February 2014
Resources on our site to help you and your family.
SMSF investment process is broken, but a good financial planner can fix it
A behavioural barrier to successful saving
Spending of super lump sums
What the past can teach us about the current emerging turmoil
Some terms defined - Super & Investment
Spending control in a low-interest environment
Market Update - January 2014
The return of a resilient US
Putting financial literacy to the test.
No intention to retire
Outlook for Japan in 2014
Understanding Profit Metrics: Gross, Operating and Net Profits
Market Update - 31st December 2013
Articles archive
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 4 of 2007
A look into the super future.
An untrained dog.
Fallout in the property sector continues
Investment Markets Data – To 30th November 2007.
Another super change
The new thing is getting older
What a change in government means for investors
Stock Lab: Is your share portfolio a dud?
Investment Markets Data - To 31st October 2007.
The enemy within
Value is a scarce commodity
Stock Lab: Guide to analysing stocks (Part 2)
Investment Markets Data - To 30th September 2007.
A look into the super future.

By Robin Bowerman
Smart Investing
11th December 2007
Principal & Head of Retail, Vanguard Investments Australia

What does the future hold for your super savings and the super savings of Australia?

Superannuation consultant and actuary Rice Warner has taken a look into the long-time future of Australian super and come up with some fascinating - but perhaps not overly surprising findings.

Crucially, these findings should help serve as yet another wake-up call for Australian's who are lagging with their super savings.

But fortunately there are reassuring expectations by Rice Warner that Australians will become much more responsible in the way they receive their super money upon retirement.

First, the latest Rice Warner's Superannuation Market Projections Report, released late last week, forecasts that over the next 15 years, Australia's total super savings will multiply by almost three times to $3.2 trillion-plus (in 2007 dollars).

Given Australia's rapidly ageing population, Rice Warner expects that 39% of these super savings will be then held by retirees.

But what about balances? Rice Warner expects average fund balances to grow over the next 15 years from $74,700 in June 2007 to $118,600 (again in 2007 dollars). The report emphasises that it is referring to the dollars held in ALL super accounts - meaning that the calculation includes multiple super accounts held by members.

Australia's traditional fondest for receiving their super in lump sums - only leaving themselves with the task of reinvesting the money or facing the risk of unsustainable spending - is on the way out.

"There will be a significant shift from lump sums to pensions as members choose to maintain their benefits in a tax-free environment," according to the report. Further, members over 60 who still in the workforce will increasingly use transition-to-retirement pensions.

And the revamping of Australia's super system from July this year will really super-charge voluntary super savings. Rice Warner estimates that these changes alone will increase the superannuation market by a breathtaking 60%.









  Financial Advisor | Financial Planner | Financial Adviser | Financial Planning | Financial Planner Sydney