News and Views

Staying in your home and hiring private care for ill-health in retirement could cost almost twice as much as accommodation in a retirement village.

Giving people access to healthcare without the prospect of financial hardship is the key message behind World Health Day that is celebrated on 7 April every year. The World Health Organisation (WHO) wants countries to invest in ‘Health for All’, which is their theme for 2018. By investing in health care and financial protection, someone’s health (and hence life expectancy) and lifestyle can improve.

The 2018 budget will place increased pressure on retirees’ disposable income because of income tax bracket creep. Simply put, inflationary annuity income increases may have pushed some middle to high income earners into a higher tax bracket.

Many trustees are establishing default annuity strategies which inadvertently set up their members for failure by giving them little to no guidance about the sustainability of their income in retirement and by not providing an option to secure a guaranteed Lifetime Income.