Slow economic growth and the impact of US political reforms on economic markets are two of the biggest concerns for retirees at the moment, according to a recent research report.
Survey results released by Plato Investment Management, which examined pension phase investors and their financial advisers, revealed that around 67 per cent of respondents were worried about slow economic growth, while 64 per cent were concerned about the impact from US President Donald Trump.
Despite these concerns, 29 per cent of respondents still expect an income of greater than 7 per cent from the portfolio.
A further 21 per cent of respondents expect between 6 and 7 per cent in income from their portfolios, while 29 per cent of respondents expect between 5 and 6 per cent.
Plato managing director Don Hamson said the results show Australian retirees still expect a high level of income from their portfolios, but are concerned about achieving this in the current economic and political environment.
The issues facing pension phase investors have been further compounded by regulatory change, Mr Hamson said.
“While the 2015 budget papers state 170,000 pensioners will be better off after the new asset test changes are implemented, up to 300,000 part-pensioners are likely to be worse off as they lose pension entitlements,” he said.
In addition to these changes, the looming implementation of new super rules that apply from 1 July 2017 will see Australians working longer to maintain their retirement income levels.
“Pension-phase investors represent close to $500 billion of the $2.1 trillion superannuation pool, and this demographic group is set to face a number of challenges as our economic and regulatory environments both pose threats to the stability of their investment income.”
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 17 Aug 2017Industry questions ATO’s capacity for new reportingBy Miranda Brownlee
- 17 Aug 2017Qld succession law changes tipped to impact SMSFsBy Miranda Brownlee
- 16 Aug 2017Contribution limits restricting future balances, warns mid-tierBy Staff Reporter
- 16 Aug 2017SMSF firms underprepared for events-based reportingBy Miranda Brownlee
- 15 Aug 2017SMSF auditor disqualified for misconductBy Staff Reporter
- 15 Aug 2017Class gains market share in financial year resultsBy Staff Reporter
- view all
- Industry questions ATO’s capacity for new reporting
With events-based reporting set to generate huge amounts of data, concerns have been raised about whether the ATO’s systems will be able t...read more
- Contribution limits restricting future balances, warns mid-tier
Clients hoping to accumulate a superannuation balance of $1.6 million by age 65 will need to start taking full advantage of concessional con...read more
- SMSF firms underprepared for events-based reporting
A straw poll has revealed that the majority of SMSF firms currently feel their firm is not equipped to deal with the proposed events-based r...read more
- view all