The Actuaries Institute’s Superannuation Projections and Disclosure Subcommittee has published an excellent article on “The Importance of Projections in Developing Retirement Strategies”. The example they use is of two people responding to the Age Pension changes. The first takes a short term view that costs her dearly in the long term. I would encourage every financial planner in Australia to read this article https://www.actuaries.digital/2016/09/28/the-importance-of-projections-in-developing-retirement-strategies/ “Year by year projections throughout retirement are vital to capture the dynamic nature of the age pension rules as asset values change”.
I am trying to find the time to polish up the Excel calculator we use for Age Pension optimization and mitigation of adverse outcomes from the change into a user friendly format. We use it for para-plans which we prepare. The Solution Pack will contain:
- A simple Excel calculator to estimate Age Pension entitlements before and after the 01/01/2017 changes (this is free – let me know if you would like a copy);
- A white label/branded web calculator for the Age Pension where you can put a promotional message in the footer;
- A comprehensive Age Pension optimization calculator that shows the value of offset in setting the sustainable retirement level; evaluation of grandfathered ABP’s; getting cost of living and step downs optimal; use of fixed term annuities etc. (cost is $495 inclusive of GST);
- A template SOA to accompany the calculator; and
- A para-plan service.
Time is short and hundreds of thousands of Australian’s are affected. Those most affected are retirees with levels of assets that make them good financial planning clients. If you would like to keep up-to-date with the development of these support tools, please drop me a one-liner at email@example.com.
The NetActuary Team