A big no. Super is our money and it was accumulated on this understanding. If we want to take it out on retirement and buy a B&B, help kids into a house, fund a kids wedding or retire overseas that should be our choice. The vast majority will still help reduce government spending on pensions, even if we did the things listed above - which few would do. One of the big problems with super is the risk of the government seeing this big bucket of money and gradually tapping into it with increased taxes or reduced lifetime returns. Don’t make it easier for them to do this!
Thanks - this resonate. Spending post retirement is a weird concept when you weigh up purchases against a non existent wage. I like the idea of putting money aside that is quarantined for personal spending - even if only in your head.
Should the government dictate how you spend your Super? This is an interesting question with two possible answers. The simple answers are in my opinion
.
1. For self-funded retiree's........... definitely NO! They are using their own money.
2. For retirees who partake of the aged pension or part aged pension there is a case that the Government should mandate they use their Superannuation first whilst being supported by the taxpayer.
Good grief. The government can’t even manage their own budgets - blow outs on projects - giving themselves massive pay raises when others have to fight to get piddly raises - so much government $ wastage - and yet they want to dictate our expenditure on our own money?
The other thing that my husband reminded me - the Government work for us. They need to be reminded of that. We don’t need them to act as quasi parents over what we do with OUR money !
Firstly, you write for a MSM corporation that is about as trustworthy as Murdoch media outlets. Who leaked this magical plan? Who is the source, is this LNP scaremongering for votes, again?
On the slightest chance that it on the up and up;
My wife and I have panned our finances very carefully, with years of check-ups and tweaks with financial advisors. Trying to ensure we can have the best retirement possible, funded mainly by us.
The day they pay my bills, they can tell me what to do. We haven't spent decades doing the right things fiscally and working hard for someone else to step in and tell us what to do.
Absolutely not. I didn’t spend my career putting money away so the government tell me how to spend it or control it. This is undermining our ability throwing us all in the same basket of being incapable to manage our own life. I’d even suggest that this is ageist discrimination!
40 years ago we were assured that our super was ours as a reward of a lifetime of saving to have a comfortable retirement, and now they want to control how we spend it.
I have every intention of traveling while fit enough and in comfort, reducing as l age, if this was taken away now when I’m a few years from retiring l would be devastated.
More simple education is needed so people understand how their super works but the information is out there now on government websites, in your book, newspaper's etc.
Thanks for this heads up. / My super already has a minimum draw down....? / And for an increasing number of us, our super is not only our savings (required ones) but our employers' contributions, required by the superannuation guarantee and supported by govt tax concessions. So it's more than just our savings. It serves a common purpose.
Good morning Bec. Thank you for your insights into whether retiree's wait too long to start spending. As a recently retired (one month) 68-year-old I can tell you that saving is ingrained into my DNA..........as my grandmother started my CBA saving account when I was three! During my whole working life if I didn't save at least some part of my wage each week I felt I had failed.
This savings ethic has now given my wife and I a very comfortable retirement without the aged pension. I would advise the younger generation to adopt a similar pattern and discipline if they intend to be self-sufficient in retirement. Additionally, I think someone in their forties will have a different perspective on saving v spending when they reach retirement age as only then does the individual finally know just what their financial situation is.
This is 100% true for me! I've only just retired (last week) and we went away for a week. I felt extremely uncomfortable/guilty/anxious spending money on a holiday knowing that my Long Service Leave runs out in 6 months, then there's no more work-generated income. It's definitely a mindset change, because we have a financial advisor and I know intellectually what we can comfortably spend, but spending it is making me anxious. Hopefully, with time (and awareness), I can adjust my mindset and enjoy the fruits of our many years of hard work. Thanks for a great article!
My husband & I worked out we will need a certain amount for house maintenance, new cars, & travel each year. Our bank app worked out how much we need to save for those and it automatically transfers money into a savings account for these. It was a long road trip that we worked it out! When we reach the savings goal, we’ll spend. My husband is more comfortable with that rather than drawing down on our super. It’s a start.
No. No. No. How the hell would that work with an SMSF, that has been carefully constructed investment wise over many years?
Like many retirees, I got financial advice a few years ago in the lead up to retirement later this year, to help us work out our financial goals in retirement; that is a higher income for the first 10 years, for travel & to tick off a few things on the bucket list before settling into a slower lifestyle and lower income; with funds left for aged care and to help our kids.
I paid handsomely for that advice - we have a plan transfer as much into super to ensure we meet those goals. If the govt, changes the rules to dictate not only how we invest & the products we use, as well as how we drawdown and when, then that advice will be worthless. No way am I transferring any more funds into super until I know more.
Thanks for this story. So is it government or the industry funds driving this? Can only assume the industry funds lobbying is working overtime- it’s our money not the governments - super is a tax structure only what we do with it is up to individuals - good luck if you think the government is better at knowing what you need or want. As an example where did the base $200k come from- a wheaties packet? Labour drove the concept of taxing unrealised gains in super - not indexed and would have a material impact on small businesses and our future generations . They can’t be trusted. Period. This is an own goal for Labour. If you feel uneasy about spending in retirement get advice or at least read up on it- there is plenty of info, leaving this to government is a disaster.
Yes I am comfortable with my retirement super and savings and are following your strategy on careful spending on holidays etc however we don’t spend on meals out and other increasingly expensive items
I know many people who ate not in this fortunate situation and are facing rising costs of living etc careful saving rather than spending is critical for them
A big no. Super is our money and it was accumulated on this understanding. If we want to take it out on retirement and buy a B&B, help kids into a house, fund a kids wedding or retire overseas that should be our choice. The vast majority will still help reduce government spending on pensions, even if we did the things listed above - which few would do. One of the big problems with super is the risk of the government seeing this big bucket of money and gradually tapping into it with increased taxes or reduced lifetime returns. Don’t make it easier for them to do this!
Thanks - this resonate. Spending post retirement is a weird concept when you weigh up purchases against a non existent wage. I like the idea of putting money aside that is quarantined for personal spending - even if only in your head.
Should the government dictate how you spend your Super? This is an interesting question with two possible answers. The simple answers are in my opinion
.
1. For self-funded retiree's........... definitely NO! They are using their own money.
2. For retirees who partake of the aged pension or part aged pension there is a case that the Government should mandate they use their Superannuation first whilst being supported by the taxpayer.
Pretty simple really.
Good grief. The government can’t even manage their own budgets - blow outs on projects - giving themselves massive pay raises when others have to fight to get piddly raises - so much government $ wastage - and yet they want to dictate our expenditure on our own money?
The other thing that my husband reminded me - the Government work for us. They need to be reminded of that. We don’t need them to act as quasi parents over what we do with OUR money !
Good article Bec, I guess it’s about changing mindset
I’m about to retire at 56
Firstly, you write for a MSM corporation that is about as trustworthy as Murdoch media outlets. Who leaked this magical plan? Who is the source, is this LNP scaremongering for votes, again?
On the slightest chance that it on the up and up;
My wife and I have panned our finances very carefully, with years of check-ups and tweaks with financial advisors. Trying to ensure we can have the best retirement possible, funded mainly by us.
The day they pay my bills, they can tell me what to do. We haven't spent decades doing the right things fiscally and working hard for someone else to step in and tell us what to do.
Absolutely not. I didn’t spend my career putting money away so the government tell me how to spend it or control it. This is undermining our ability throwing us all in the same basket of being incapable to manage our own life. I’d even suggest that this is ageist discrimination!
Sure!
No they should not! How rude!
40 years ago we were assured that our super was ours as a reward of a lifetime of saving to have a comfortable retirement, and now they want to control how we spend it.
I have every intention of traveling while fit enough and in comfort, reducing as l age, if this was taken away now when I’m a few years from retiring l would be devastated.
More simple education is needed so people understand how their super works but the information is out there now on government websites, in your book, newspaper's etc.
Marietta
Thanks for this heads up. / My super already has a minimum draw down....? / And for an increasing number of us, our super is not only our savings (required ones) but our employers' contributions, required by the superannuation guarantee and supported by govt tax concessions. So it's more than just our savings. It serves a common purpose.
Good morning Bec. Thank you for your insights into whether retiree's wait too long to start spending. As a recently retired (one month) 68-year-old I can tell you that saving is ingrained into my DNA..........as my grandmother started my CBA saving account when I was three! During my whole working life if I didn't save at least some part of my wage each week I felt I had failed.
This savings ethic has now given my wife and I a very comfortable retirement without the aged pension. I would advise the younger generation to adopt a similar pattern and discipline if they intend to be self-sufficient in retirement. Additionally, I think someone in their forties will have a different perspective on saving v spending when they reach retirement age as only then does the individual finally know just what their financial situation is.
This is 100% true for me! I've only just retired (last week) and we went away for a week. I felt extremely uncomfortable/guilty/anxious spending money on a holiday knowing that my Long Service Leave runs out in 6 months, then there's no more work-generated income. It's definitely a mindset change, because we have a financial advisor and I know intellectually what we can comfortably spend, but spending it is making me anxious. Hopefully, with time (and awareness), I can adjust my mindset and enjoy the fruits of our many years of hard work. Thanks for a great article!
My husband & I worked out we will need a certain amount for house maintenance, new cars, & travel each year. Our bank app worked out how much we need to save for those and it automatically transfers money into a savings account for these. It was a long road trip that we worked it out! When we reach the savings goal, we’ll spend. My husband is more comfortable with that rather than drawing down on our super. It’s a start.
No. No. No. How the hell would that work with an SMSF, that has been carefully constructed investment wise over many years?
Like many retirees, I got financial advice a few years ago in the lead up to retirement later this year, to help us work out our financial goals in retirement; that is a higher income for the first 10 years, for travel & to tick off a few things on the bucket list before settling into a slower lifestyle and lower income; with funds left for aged care and to help our kids.
I paid handsomely for that advice - we have a plan transfer as much into super to ensure we meet those goals. If the govt, changes the rules to dictate not only how we invest & the products we use, as well as how we drawdown and when, then that advice will be worthless. No way am I transferring any more funds into super until I know more.
I thought the same, I’ll wait to see how this pans out before putting any more in.
Thanks for this story. So is it government or the industry funds driving this? Can only assume the industry funds lobbying is working overtime- it’s our money not the governments - super is a tax structure only what we do with it is up to individuals - good luck if you think the government is better at knowing what you need or want. As an example where did the base $200k come from- a wheaties packet? Labour drove the concept of taxing unrealised gains in super - not indexed and would have a material impact on small businesses and our future generations . They can’t be trusted. Period. This is an own goal for Labour. If you feel uneasy about spending in retirement get advice or at least read up on it- there is plenty of info, leaving this to government is a disaster.
Hey Bec
Yes I am comfortable with my retirement super and savings and are following your strategy on careful spending on holidays etc however we don’t spend on meals out and other increasingly expensive items
I know many people who ate not in this fortunate situation and are facing rising costs of living etc careful saving rather than spending is critical for them