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Hobart, Australia
The core objective of the firm is to assist advisers with the computational aspects of managing retirement income uncertainty.
Interests: Pension Risk Management, Age Pension Maximisation, Transition to Retirement, Investment Property
Recent Activity
My Retirement products (also called Comprehensive Income Products for Retirement) are designed to empower trustees to provide members with an easier transition to retirement income. I understand that financial planners will have to demonstrate that any non-My Retirement product they recommend is in the client’s best interests as opposed to... Continue reading
Posted 5 days ago at NetActuary
This blog has been prompted by watching David Busoli’s video about the “strategic admin” focus for his new SMSF Alliance firm. The same applies to actuarial certificates. Whilst one keeps the low costs and processing speed gains of recent years, we find ourselves in a climate where a client’s best... Continue reading
Posted Feb 5, 2018 at NetActuary
Thanks for all the kind comments and encouragement about these pre-retirement planning tools. I agree that there is a need for modest cost planning support tools. The comments that in the years ahead these tools are likely to have a robo advice version is also valid. In this second calculator,... Continue reading
Posted Jan 18, 2018 at NetActuary
The first of the three calculators to assist with pre-retirement planning for couples can be downloaded from the NetActuary website – click here. The calculator works out the assets that need to be accumulated by a preferred retirement date to cover a desired retirement income. It allows you to set... Continue reading
Posted Jan 16, 2018 at NetActuary
A retirement plan is important – but shorter-term family expenditure needs and lifestyle ambitions can make it look too difficult to tackle. Clients need to be able to see the whole picture – where mortgages are paid off and private school fees don’t wipe out disposable income. NetActuary has developed... Continue reading
Posted Jan 14, 2018 at NetActuary
There is no doubt that recent changes have made SMSF administration and management a lot more complex. This blog considers measures that can be taken to make Exempt Current Pension Income (ECPI) aspects less onerous administratively. For the 2017/18 financial year, the ATO will enforce it’s view that where a... Continue reading
Posted Jan 1, 2018 at NetActuary
I like this time of the year. Besides plenty of Christmas pudding and desserts, it is a good time for reflection and planning business strategies for 2018. Superannuation administrators, financial planners and auditors need a high level of competency and proactivity if they are going to act in their clients’... Continue reading
Posted Dec 14, 2017 at NetActuary
I have been watching – on Netflix – a fascinating series by mathematician Marcus du Sautoy (yes seriously fascinating!) on how the precision which one can measure things influences the outcomes that are possible. The better the precision, the better the outcome that can be created. To illustrate this, here... Continue reading
Posted Nov 25, 2017 at NetActuary
UK pension splitting provisions are not dissimilar to Australia. It is possible to split personal pension schemes; occupational pension schemes and the Additional State Pension. It is not possible to divide the basic State Pension. Scottish provisions can have difference to those in England, Wales or Northern Ireland. In the... Continue reading
Posted Nov 14, 2017 at NetActuary
The Actuaries Institute’s new practice guidelines for projected retirement benefit illustrations will apply from 1st January 2018. It contains some useful provisions and comments for a variety of tasks from retirement calculators to comparing benefits from different types of funds. It also provides comments upon how to help users appreciate... Continue reading
Posted Nov 2, 2017 at NetActuary
In Private Binding Ruling 105 1226866016 (Date of Advice 18 May 2017) a taxpayer asked the question that if “applicable fund earnings” were transferred from one foreign superannuation fund to a second foreign superannuation fund – and then on to an Australian SMSF, could an election be made in accordance... Continue reading
Posted Oct 30, 2017 at NetActuary
NetActuary is going to make available its extensive library of custom computational tools. The first group will be those that help with pre-retirement planning. There is little point in talking about what assets would be required at retirement for a comfortable lifestyle without examining how feasible this is. Paying off... Continue reading
Posted Oct 22, 2017 at NetActuary
In April 2015 the UK introduced an option to access retirement monies similar to the Australian Account Based Pension. The Flexible Access Drawdown allows those over the age of 55 to withdraw 25% of their pension post as a tax-free lump sum and the remainder subject to the normal rates... Continue reading
Posted Oct 12, 2017 at NetActuary
The SMSF Association/Accurium checkup for SMSF financial health as at 30th June 2016 has just been published. It shows that many SMSF members are further away from achieving their retirement goals than previously. I am not surprised at that because the paper showed a median investment return of 1% for... Continue reading
Posted Sep 18, 2017 at NetActuary
Here is the ATO announcement that industry practice needs to change from 2017-18. Many funds will find this view produces a better outcome in 2016-17. CONFIRMATION OF ATO VIEW: SMSFs AND TAX-EXEMPTION ON PENSION ASSETS Self-managed super funds (SMSFs) will be required to use the segregated method to claim exempt... Continue reading
Posted Sep 11, 2017 at NetActuary
There is a certain irony in the fact that many people overseas are struggling to come to terms with account based pensions but the opposite is true in Australia. Admittedly, SMSFs have not been allowed to offer formula based defined pensions since 01/01/2006. This is partially the reason why many... Continue reading
Posted Aug 30, 2017 at NetActuary
The ATO’s view that where an SMSF is 100% in pension mode for any period during the financial year it must use the segregated method to claim ECPI, would lead (in most cases) to less tax being paid. I think there is an advantage to asking your SMSF actuary to... Continue reading
Posted Aug 23, 2017 at NetActuary
The latest Sunsuper report which surveyed over 1,000 Australians is interesting. It found that 73% plan to use the Age Pension when they retire. One is tempted to jump to the conclusion that this is either apathy or lack of financial skills. However, I wonder if this is true? Look... Continue reading
Posted Aug 22, 2017 at NetActuary
A defined benefit entitlement needs to be valued for matrimonial property settlement purposes. As the PSS doesn’t provide this value, NetActuary undertakes a considerable number of these valuations. Under the Family Law Legislation, the Attorney-General has approved special methods and factors for this fund. NetActuary is required to use these... Continue reading
Posted Aug 20, 2017 at NetActuary
If your client has more than $1.6m in an Account Based Pension and this is the only account in the fund, then there is an awkward 2016-17 ECPI decision. The ATO treats the fund as fully segregated as all of its assets are earmarked to pay pension benefits. Previously, it... Continue reading
Posted Aug 15, 2017 at NetActuary
There is an urgent need to tidy up Legacy Pensions. I had hoped the government would facilitate this, but since they show no sign of that we need to help clients tidy them up. It’s been more than 10 years since a SMSF could implement a S1.06(2) Lifetime, 1.06(6) Flexi... Continue reading
Posted Aug 14, 2017 at NetActuary
With matrimonial property settlements, our main task is to calculate the current value of defined benefit superannuation entitlements. The use of prescribed methods and factors makes this an objective and consistent task. However, some individuals want to take this a step further and calculate what accrued in that value from... Continue reading
Posted Aug 3, 2017 at NetActuary
Since we are getting a number of requests for reports on the present value of funds management costs for intellectually impaired plaintiffs on the Gray vs Richard [2014] HCA basis, the NetActuary website now has a standard form ... click here. Actuaries and Lawyers think differently. An actuary would model... Continue reading
Posted Aug 2, 2017 at NetActuary
This blog sets out the current issues with Exempt Current Pension Income calculations. If you are in a hurry, skip to the last sentence about simply avoiding the issue. Industry practice has been that it is possible to get an ECPI actuarial certificate for the whole year covering all assets... Continue reading
Posted Aug 1, 2017 at NetActuary
I am putting a bit of effort into trying to understand and assemble the more esoteric aspects of Legacy Pensions and the Transfer Balance Cap. While not claiming to be fully conversant with all aspects, this blog reports progress. It is an update and correction of earlier blogs. Flexi Pensions... Continue reading
Posted Jul 22, 2017 at NetActuary