MLC Market Watch

New social security rules coming into effect on 20 September will bring welcome relief for pensioners or those nearing retirement.

MLC Technical Expert, Gemma Dale outlines a number of key changes and what it may mean for you.

These changes include:

• an increase in the rate of pension
• incentives to remain in the workforce, and
• new arrangements for treating income.

Find out how the new pension system will work, and how you can make the most of the changes before the 20 September deadline.

View the Gemma Dale video here.

Gemma Dale leads a team of technical specialists at MLC responsible for providing information to advisers and investors on a range of superannuation, tax and social security issues.

View the  Budget video here.

Self-funded retirees who are invested in the sharemarket have arguably been the hardest hit by the global financial crisis.

Many may now be wondering if they should move their account-based pension into a more conservative investment portfolio, which contains less growth assets such as shares and property.

So we went back through history to see the impact that switching to a more conservative portfolio would have had, if done after a major market fall.

We also outline some strategies you could discuss with your financial adviser to help you weather the storm.

What is an account-based pension?

Before we reveal the lessons we can learn from history, we thought it was worthwhile going back to basics to explain how account-based pensions work.

An account-based pension enables you to invest your superannuation savings and receive a tax-effective income to help meet your living expenses.

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It’s often the case in dealing with the demands of every day life, we forget the financial year will soon be drawing to a close.

There are, however, great benefits to getting in early with your financial year-end planning.

We’ve identified four strategies to consider as the tax year draws to a close. Three of them may boost your retirement savings while paying less tax, and the fourth is a tax-effective way to purchase insurance.

And this is just the tip of the iceberg! Your financial adviser has many other strategies which may be suitable for you, all designed to improve your financial position.

So why not make this year-end a clever one?

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Self-funded retirees who are invested in the sharemarket have arguably been the hardest hit by the global financial crisis.

Many may now be wondering if they should move their account-based pension into a more conservative investment portfolio, which contains less growth assets such as shares and property.

So we went back through history to see the impact that switching to a more conservative portfolio would have had, if done after a major market fall.

We also outline some strategies you could discuss with your financial planner to help you weather the storm.

(more…)