For APRA, bigger always seems to be better. But as this state of the nation report into superannuation highlights, size doesn’t count for everything when it comes to delivering member benefits.
For the past year, the banks have delivered to shareholders with income and capital gain. In the run-up to their next results, it might be time to consider taking some scrip off the table and pocketing a tidy profit.
Fresh research highlights that many older Australians owning their home and on a full pension still feel financial stress, needing an extra $10,000 (singles) or $15,000 (couples) a year to meet their basic needs.
An Australian Human Rights Commission study released this week is highly critical of the fourth estate for its coverage of ageing issues, citing a disproportionate focus on tensions between older and younger generations around wealth and finance as one obvious example.
A slowing economy has prompted S&P/ASX 200 companies to keep a lion’s share of their earnings by tightening shareholder distributions, with fund manager Martin Currie identifying the resources sector as a real cause for concern regarding future income.
Peoples’ notion of how they will fund their retirement habitually downplays the role of social security. Reflecting a lack of understanding about how the different income streams interact, it behoves superannuation funds to better educate their members.
Such is the psychological hold that the family home has on many retirees, it prevents them from accessing the equity in this asset that could contribute to a far more economically secure retirement.
The mix of strong business demand for credit and investors seeking high yields of between eight per cent and 12 percent is underpinning a flurry of private credit fund offerings.
Private enterprise, health districts and universities have developed a tech-driven care model to optimise home healthcare – a model far less expensive than hospital or aged care.
Institutional investors get it. So do some financial advisers. But for most SMSFs, sovereign and corporate debt is the forgotten asset class – despite the defensive benefits it can deliver.
