Edi­tor’s let­ter

Money Magazine Australia - - CON­TENTS - Effie Za­hos, Edi­tor, Money mag­a­zine

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.

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