Whatever your thoughts are on our cover story – and, by the way, I would love to hear – I want to make it very clear that I’m a big supporter of superannuation. As founder of, and ambassador for, Money/ ASFA’s Super Booster Day, I believe in super and encourage all to take advantage of the tax perks it has to offer. Having said that, the biggest issue to confront many people is that as they accumulate more assets they progressively lose the age pension. Now, having too much wealth to qualify for the age pension is a good thing, right? Well, that depends.
After receiving an email from one of our readers about how frustrating and dishearten- ing it was to always be reading that $1 million is the magic number you need to retire on, the team at Money thought it was time we found the “sweet spot” for readers. As Susan Hely reveals in her must-read story, for some retirees a modest saving works out to be better than slaving to reach what was in this reader's case the unreachable. The message here is not about giving up on super; in fact, it’s quite the opposite – don’t let what may seem like the impossible put you off it.
Of course, this whole story could fall apart if the pension changes or is pulled out from beneath us. Until it does, though, you may be surprised at just how achievable that sweet
spot between super and the pension is. The worst thing you could do is give up hope and stop building wealth (both in and out of super), which is why we are keen to get these numbers out.
A big congratulations to all our Consumer Finance Awards winners. This is the 13th year we have teamed with Canstar to bring these awards to you. With the federal budget’s announcement of a bank levy, it may pay to get familiar with some of these institutions.