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Budget to change how retirement goals are reached
The new part pension changes announced in the Federal Budget on Tuesday night will change the way investors achieve retirement goals, Xpress Super said.
The self-managed super fund (SMSF) administrator said the taper rate, and social security assets test changes will affect a sizeable number of SMSF trustees and members.
"When you realise that an estimated 90,000 retirees will lose their part pension entirely, and nearly 250,000 will see their part pensions cut, then the enormity of the change for many SMSF trustees and members is evident," XpressSuper and SuperGuardian chief executive, Olivia Long, said.
"The assets-free threshold for homeowners rises to $250,000 for singles and $375,000 for couples from 2017, and the tapering rate rises from $150 to $300 per $1000 over the assets threshold."
Long said long-term retiree goals of preserving capital and generating income should remain but professional advice will be needed as the new policies will change how the goals are reached.
"Avoid any knee-jerk reactions such as moving their wealth from means-tested assets to non means-tested assets," she said.
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