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Education key in combating elderly financial abuse

Education key in combating elder financial abuse

Financial advice practices will be able to equip staff with greater knowledge and understanding around identifying and preventing elder financial abuse through a selection of new education and training materials.
Protecting Seniors Wealth has launched a range of resources including presentations, training courses, and publications to create awareness and assist in developing strategies to deal with senior and elder financial abuse efficiently.
The company believes financial planners are in a unique position to assist in protection seniors and their wealth as they assist in the management of their finances and so should incorporate this sort of training into their business plains, promoting trust and building on their business’ reputation.
“Seniors and elders are prime targets, they hold the largest share of wealth and often need assistance dealing with unwanted financial predictors, and the focus is on the seriousness of this issue – rapid increases, how seniors are impacted how much money and assets are being stolen.” Protecting Seniors Wealth chief executive Anne McGowan
“its motivational and provides opportunity to relate in terms of possible loss of their own clients and funds, providing strategic insight and knowledge for assisting to be money gatekeepers.”
McGowan believes the findings of the Australian law reform commission’s inquiry into Elder Abuse will indicate the need for more education, with the new resources working toward fulfilling the need.
“The disturbing consequences of this form of abuse are so profound that when financial perpetrators take senior elders money and assets, they often also take the funds they need for their lifestyle and age care, along with their dignity and the inheritance they plan to leave loved ones, resulting in the final insult – inheritance being stolen or taken as well,” McGowan said.
Resources from Protecting Seniors Wealth can also be tailored for CPD accreditation.
Separately, the Australian Tax Office (ATO) is reminding Australians to stop and think before giving their personal details or hard earned money to scammers this tax time.
Assistant Commissioner Kath Anderson said 48,084 scams were reported to the ATO between July and October last year.
“we have already seen a Five-fold increase during the tax time period,” Anderson said.
“Already this year, the ATO has registered over 17,067 scam reports. Of these, 113 Australians handed over $1.5 Million to fraudsters with about 2500 providing some form of personal information including tax file numbers.”

[via FINANCIAL STANDARD]

Retirement lifestyle concerns

Australians pessimistic about retirement lifestyle

The majority of Australians aged 45 and up (53.1%) believe that they will not have an adequate super balance or income to maintain their desired lifestyle in retirement, according to new research from CoreData.

CoreData’s 2016 Post Retirement Report found that pre-retirees expect to need an average of $1,224 a week (up $100 from 2015 and $209 from 2014) and a super balance of $804,559 to maintain their desired lifestyle.

In a bid to manage the risk they will outlive their savings and combat rising costs of living, 81.2% of pre-retirees plan to keep working in some capacity upon retiring.

The report found that awareness and understanding of the retirement solutions available were low among pre-retirees, with only 31.9% stating they have a good understanding of what an annuity can offer and only 27.3% claimed they were likely to purchase one in retirement.

Kristen Turnbull, head of WA at CoreData, said that the average superannuation balances at retirement of $292,500 for men and $138,150 for women fall well short of the $8000,000 balance the average pre-retiree expects they’ll need.

The reality is that retirees are either going to have to drastically alter their expectations for retirement or start making some serious financial and lifestyle sacrifices now if they have any hope of reaching their financial goals in retirement

Digital engagement emerged as a key way superannuation funds can educate over 45s on their retirement options, with 54.8% of pre and post-retirees stating they would like their main fund to make information available on the funds’ website.

[via Financial Standard]

Women in super

Women own less than 40% of super assets: ASFA

The share of superannuation assets held by women has plateaued over the past four years according to Australian Bureau of Statistics (ABS) data exclusively compiled for the Association of Superannuation Funds of Australia (ASFA).

Women now hold 36.4% of Australia’s superannuation assets but this number has remained steady in the four years to financial year 2013/2014. Women have also experienced a lesser percentage increase than men in average balance at the time of retirement, with the average balance for men increasing by 48.5% over the two years to 2013/14 compared to 31.6% for women.

ASFA chief executive Pauline Vamos said this reflected the different work patterns and earnings levels of men and women in their pre-retirement years.

“Even though account balances are increasing overall for women, the statistics still show that men are more likely to have superannuation than women, and also that men on average have a higher account balance. In many cases, broken work patterns and lower average wages still impede on women’s ability to save for retirement,” Vamos said.

Average superannuation balances have increased for both men and women according to the ABS data.

The average balances in 2013/2014 for all persons aged 15 and over were $98,535 for men and $54,916 for women. This is about a 20% increase from two years’ prior where average balances were $82,615 and $44,866 for men and women respectively.

Average superannuation balances at the time of retirement have also increased, to $292,500 for men and $138,150 for women in 2013/2014 from $197,000 and $105,000 respectively in 2011/2012.

Vamos said gender disparity in superannuation balances is now on the agenda, and the next step is for government, employers and individuals to take action.

“ASFA has proposed a number of options for improving the economic security of women in retirement, including raising and broadening the Superannuation Guarantee, retaining the Low Income Superannuation Contribution Scheme and amending annual contribution caps to enable people with broken working patterns to ‘catch up’ their superannuation contributions,” Vamos said.

For individuals in their early 30s, average balances rose to $36,400 for men and $25,550 for women in 2013/2014, almost two times the average balances of $20,000 for men and $14,000 for women two years earlier.

According to the ASFA Retirement Standard, a single person will need a minimum of $545,000 in superannuation at retirement to live a comfortable lifestyle. This is assuming that they will draw down all of their capital over the duration of retirement, and that they will receive a part Age Pension.