June RBA announcement 2017

At today’s board meeting the Reserve Bank decided to leave the cash rate unchanged at 1.50%.

Studies show about HALF of older working Australians will retire with debt. That’s a worrying trend!

Did you also know there are changes to our superannuation system from 1 July? Will they affect you? Or your future plans?

Make sure you read this month’s article ‘Change is coming 1 July. Super!’

Regardless of your age – or stage of life – decisions about retirement affect all of us eventually. The earlier we start planning the easier some of those decisions may be…

As your finance specialist we are here to help guide you through every financial stage of your life. Want to explore your future options? Give us a call TODAY.

We look forward to hearing from you…

Quantum Investor








Okay, so maybe you’re thinking that retirement for you is a long way off? Should you be worried?

A recent study found up to 50% of older working Australians are expected to retire with debt and around 20% are expected to retire with a mortgage.

So what do you think is one of the primary reasons for this level of debt? It’s the sandwich!

The trend has largely been attributed to our current older generation being the first ‘sandwich’ generation. Many over the 50s are under financial pressure from intergenerational dependency resulting in almost $200 billion being contributed to both their parents and children in their lifetime.

The study estimated around 72% of this is going towards education, home deposits and other expenses for adult children over 18.

Interestingly, mortgage debt has been identified as a significant contributor to financial stress during retirement.

So do you think this trend will continue for the NEXT generation of retirees? Well…

Probably – unless we learn from it!

So how DO YOU plan for a successful financial future?

Of course, there is always our superannuation – but super is just ONE component of planning for future retirement. The path to wealth creation can take many forms.

As your finance specialist, we can assist you to explore options suitable to your particular circumstances. We can also introduce other specialists in the finance industry to support your path to wealth creation.

Did you also know there are upcoming changes to Australia’s superannuation system as of 1 July?

Most changes to the super system initially announced in the May 2016 budget commence from 1 July 2017. The changes will potentially affect our super contributions and the way super and retirement income is taxed.

You may not be affected, however, it certainly pays to find out IF and HOW the changes could affect YOU – whether that be now or further down the track. After all, your super is YOUR money!

Here is a general overview of some of the changes and who they may affect:

Low-income earners (earning less than $40,000 pa)

  • Change to spouse tax offset
  • New low-income super tax offset (LISTO)
  • New ability to ‘carry forward’ your super cap
  • Change to government super co-contributions

Retirees or people approaching retirement

  • Earnings on transition to retirement (TTR) pensions taxed up to 15% (currently NOT taxed)
  • For the first time, there will be a limit on how much super can be transferred to a tax-free account-based super pension

High-income earners (earning more than $250,000)

  • Division 293 tax threshold reduced from $300,000 to $250,000 affecting more higher income earners

There is also a reduction to before and after tax contribution limits that may affect all income levels.

Financial commentators generally agree the new super rules can be complex. Ultimately, the impact of changes will depend on your financial situation and stage of life.

There are strict rules in place as to who can give you financial advice so you should always seek independent financial advice to determine how these changes may apply to your individual circumstances.

Remember! It’s NEVER too early to start planning for a debt free retirement but it can certainly be TOO LATE!

And should you help your kids before you help yourself? Ask us that question when we next chat.

If you have not had a finance review for over 18 months, we recommend you call us ASAP to ensure you have the right finance arrangement heading into the new financial year.

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