04-365 How to have a better retirement
Monday 8 November 2004
The choices you make about what to do with your superannuation when you retire will impact on your income and quality of life in retirement.
Help save yourself from a poor decision by finding out more about the options you have with your superannuation payout, what retirement income stream products are available and how can you find out the tax implications of your choice.
You no longer need to feel confused. Help is at hand and it's free.
Five new factsheets from the Australian Securities and Investments Commission (ASIC) will help you find your way through the maze of retirement planning.
The free factsheets explain the key features of five different types of Retirement Income Stream Products in plain, easy-to-understand language:
- Factsheet 1 - Allocated Pensions and Annuities
- Factsheet 2 - Market-linked Pensions and Annuities
- Factsheet 3 - Lifetime Pensions and Annuities
- Factsheet 4 - Life Expectancy Pensions and Annuities
- Factsheet 5 - Fixed Term Pensions and Annuities
Launched today by ASIC Commissioner Professor Berna Collier, the factsheets are available from ASIC's consumer website at www.fido.asic.gov.au/retire, along with lots of extra information about money matters designed specifically for retirees.
'Our free fact sheets are designed to help people make the right choices about their superannuation, to maximise their income in retirement', Professor Collier said.
'ASIC's factsheets will place people in a better position to understand what products are available and will help them to ask the right questions to ensure they are getting the best option for them.
'There are many sources of free and independent information that people can access, to supplement the advice they obtain from a licensed financial planner or tax adviser. Our FIDO website has a wealth of information and tells you where else to find free, independent help', Professor Collier said.
Background
ASIC's factsheets were developed after new research found that many people had a very poor understanding of superannuation, that they often became confused about their options at retirement and that they didn't know how to obtain help.
The report, Consumer decision making at retirement, reveals that there is a low level of planning by retirees prior to retirement. This was due, in part, to a general lack of engagement by people with superannuation until they were faced with the need to make a decision.
The research found people had a low level of understanding about the full range of choices available at retirement, that they were confused about the features of retirement income stream products, and that they did not always fully consider the tax and social security implications of their choices in retirement.
The research also found that:
- retirement did not always occur at a fixed point in time;
- retirement was sometimes unexpected (e.g. due to redundancy or illness); and
- the decision-making process of what to do with superannuation took anywhere between a few weeks to up to two years.
End of release
The following links are to information on FIDO, our website for consumers and investors:
Information for retirees
Report: 'Consumer decision making at retirement'
ASIC Website: Printed 07/29/2010
