The Financial Planning Association of Australia (FPA) cited a recent Government document as confirmation that all Australians need professional financial advice. As a firm that has provided financial planning help in the Perth area since 2005, we have always felt that a good financial planner can make a difference in anyone’s future.
2015 Intergenerational Report
The document in question is produced by the Treasury: the 2015 Intergenerational Report (IGR). According to the IGR, life expectancy will increase greatly in the next forty years. At birth, men are projected to have a life expectancy of 95.1 years, while women can expect to live 96.6 years. Today’s life expectancy at birth is 91.5 years for men and 93.6 years for women.*
The end result is that, by 2055, the ratio of working Australians to those who are over 65 will be 2.7 to 1. Today, that ratio is 4.5 to 1. In 1974/75, for comparison, it was 7.3 to 1.*
Mark Rantall, who is the FPA’s CEO, feels that it will be important for Australians to maximise their superannuation funds to rely less on age pensions. According to Mr Rantall, “The IGR makes it very clear that [those with higher superannuation savings are less reliant on age pension].”
Mr Rantall feels that those who seek out and receive competent, professional financial advice will reduce future strain on age pension funds. He recommends getting “proper financial advice from an early age” to maximise their superannuation funds, thus minimising their reliance on age pension. According to the FPA, only 2.5 million Australians currently receive professional financial advice.*
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If you would like to take advantage of a firm with over 80 years of combined experience providing financial planning help in the Perth area, call Approved Financial Planners today: 08 6462 0888.
*Financial Planning Association of Australia, 5 March 2015: “Intergenerational Report confirms the need for financial advice for all Australians.”