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Every now and then a headline pops up that makes people stop, look twice, and wonder what on earth the future might hold. Elon Musk’s recent claim that retirement savings won’t matter in 20 years definitely falls into that category. It’s bold, it’s dramatic, and it certainly gets people talking. And it’s also very easy for a multi-billionaire to say!
Superannuation is something most Australians are familiar with. It’s mandatory for employers to contribute a portion of your wages into a complying super fund, which is then invested to grow over time, ensuring you have a nest egg for retirement. Typically, we rely on external super funds to manage these investments, and there’s a wide range of options available—from low-cost funds to more tailored solutions.
Superannuation is something most Australians are familiar with. It’s mandatory for employers to contribute a portion of your wages into a complying super fund, which is then invested to grow over time, ensuring you have a nest egg for retirement. Typically, we rely on external super funds to manage these investments, and there’s a wide range of options available—from low-cost funds to more tailored solutions.
The last 3 years in markets have been a challenging time, first came COVID and then the Russian invasion of Ukraine, it’s hard to see the light at the end of the tunnel. Household consumption is the primary force behind economic growth and it’s been experiencing a difficult combination of soaring mortgage rates, increased living expenses and persistent inflation. Together, these things are causing a decrease in disposable income. These strains are likely to persist for a while yet and are causing the short-term fluctuations you might be seeing in your portfolios, depending on your level of share exposure.
When retirement is on the horizon, things often start to get a bit easier financially. Your mortgage might be paid off or almost paid off, and you have no more school fees to worry about. Plus, if you're earning a healthy income, it's the perfect opportunity to ramp up your savings for the future. But, as most of us are all too aware, women often end up with less in their super accounts compared to men, and on top of that, they tend to live longer. These factors can really mess up your retirement plans.
Australia has just rolled out some new rules for buy-now-pay-later (BNPL) services. Basically, BNPL providers now have to follow stricter guidelines and do background checks before handing out these loans. The Australian Securities and Investments Commission (ASIC) will be keeping a close eye on companies like Afterpay and Zip Co, making sure they're playing by the consumer credit rules.
In a recent announcement, pensioners are set to receive a boost to their payment rates this month to cover higher inflation. This includes an increase to the Age Pension, Disability Support Pension, Carer Payment and JobSeeker. Starting on March 20, 2023, there will be a fortnightly increase of $37.50 for single individuals receiving the age pension, resulting in a new total of $1,064. For couples, the fortnightly increase will be $56.40, with the combined payment amounting to $1,604.60.

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Latest insights

During recent client review meetings, I've noticed two concerns coming up regularly. The first is the growing dominance of large US technology companies and whether current valuations can continue rising. The second is rising government debt levels around the world, particularly in the United States and Australia, and whether governments are willing or able to address these issues over the long term.
Sitting down with a financial planner for the first time can feel a little daunting. You might be wondering what to bring, what will be asked, or simply whether you’re ready to share your personal financial information. The good news is that a first meeting is simply a conversation, and a bit of preparation goes a long way toward making it a productive one.