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

 

  • Vaccination rates as they happen around the world

    A new resource is now available that shows the rates per country of COVID-19 vaccinations. We all suffered in many ways as COVID number increased, now, as expected, let's watch them start to drop.

  • Approaching the dawn

    COVID-19 has completely, and mercilessly, dictated the direction of economies and financial markets through most of this year. So, as we rapidly approach the end of an extremely unpredictable and volatile year, what's in store for 2021?

  • Videos and other resources for our clients

    Making our website into a valuable resource for our clients is very important to us. There are more tools and resources available when compared to almost anywhere else and this month we highlight our educational videos. We hope you enjoy these 'extras' and if you have any question then click on the Contact Us button and ask.

  • 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.

IT Financial Services, ABN 48 097 884 976, is an Authorised Representative of Apogee Financial Planning. Apogee Financial Planning Limited ABN 28 056 426 932 is an Australian Financial Services Licensee and has its registered office at 105 - 153 Miller Street North Sydney NSW 2060. A member of the National group of companies.