Financial Insights & Updates – September 2023

Welcome to the September issue of Financial Insights and Updates.

The 2023 Intergenerational Report was handed down by the Government on 24th August, outlining projections for the outlook of the economy to 2062-63. Our newsletter this month has included an article, ‘What you need to know about the 2023 Intergenerational Report’, with key points that you need to know, and also the government’s summary of the report. For the full 296-page report, click on this link – Intergenerational Report 2023.

Our article ‘Why many retirees are underspending’ makes reference to the report and the rest of the articles this month focus on issues faced by the different generations as well as on retirement. As always, feel free to forward any articles to friends and/or family that you feel may benefit from the information.

With a recent scam featuring Gina Rinehart making its rounds across social media, we would like to just remind you to always be cautious when considering investments and to come speak with us before making any major financial decision.

In signing off, please remember that we are always available to answer any questions or queries you may have and to come speak with us before making any major investment decisions.

Warm regards,

Alexander Kitchin, Stuart Engel, and Courtney Pearch

Feature Article:

The 2023 Intergenerational Report was handed down by Treasurer Jim Chalmers on Thursday, outlining projections for the outlook of the economy to 2062-63. The economy is projected to grow by an average of 2.2% per year in real terms over the next 40 years compared to 3.1% over the past 40 years.

After accumulating superannuation savings over multiple decades, many retirees are fearful of spending too much. When it comes to life in retirement, many Australians are probably being more frugal than they need to be.

Despite over 30 years of compulsory Superannuation Guarantee, two-thirds of Australians fear they won’t have enough money to last through retirement.

Inheritance planning, particularly the future division of wealth and the intended treatment of assets, should be openly discussed at the family level. The next 20 to 30 years will see the biggest intergenerational wealth handover in history.

Millions of age pensioners will soon breathe a little easier after Services Australia today revealed the 20 September Age Pension payment rates.

Many people think that Estate Planning is only for people who are close to retirement, especially if we fall into the trap of thinking that Estate Planning is just about getting a will. But did you know that Estate Planning addresses key protection strategies whilst you’re still alive?

While older Australians are reportedly among the wealthiest retirees in the world, much of their wealth is tied up in their family home, leaving many to worry about how they will find the money to pay for their day-to-day expenses when they stop work.

Disclaimer

This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. We strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own personal circumstances. Although we consider the sources for this material reliable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omission. Past performance is not a reliable indicator of future performance. Please refer to the Product Disclosure Statement (PDS) before investing in any products mentioned in this communication. This information is current as at the date of publish.