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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
We have really enjoyed helping administrators and trustees with defined pension actuarial reports this year. We have our systems and procedures fine tuned and have decided to pass that efficiency on in the form of a permanent reduction of the fee to $275 (inclusive of GST) per report. However, there... Continue reading
Posted Nov 26, 2018 at NetActuary
The Age Pension rate p.f. that applies from 20th September, 2018 is as follows: Type of Pension Previously From 20/06/2018 Single $907.60 $916.30 Couple (Both Eligible) $1,368.20 $1,381.40 Couple (One Eligible) $684.10 $690.70 Couple (Illness Separated) $907.60 each $916.30 each The above includes a clean energy supplement of $14.10 p.f.... Continue reading
Posted Sep 22, 2018 at NetActuary
One of the most worthwhile aspects of issuing the actuarial tax certificates again is not the primary task – but rather being able to highlight areas that are in the client’s best interest to consider. This is particularly true of legacy pensions. A significant proportion of these pensions could: achieve... Continue reading
Posted Aug 26, 2018 at NetActuary
Since 2015, a person with UK defined benefit safeguarded pension benefits has to obtain financial advice from a UK regulated independent financial adviser before transferring amounts to a defined contribution scheme. This includes QROPS transfers and applies to all amounts valued over GBP 30,000. This adviser must be a registered... Continue reading
Posted Aug 19, 2018 at NetActuary
Mark Ellem’s presentation at the 2018 SMSF Professional Day is an excellent overview of how the tax-exempt percentage can be increased with payment timing. NetActuary has an interest in assisting legacy pension funds. So, here are some comments about how the ECPI percentage can vary. With a legacy pension such... Continue reading
Posted Jul 29, 2018 at NetActuary
From 01/07/2019 new Age Pension means testing rules will be introduced for pooled lifetime income streams. The rules will assess a fixed 60% of all pooled lifetime product payments as income and 60% of the purchase price of the product as assets until age 84 – or a minimum of... Continue reading
Posted Jul 15, 2018 at NetActuary
You will notice that the NetActuary ECPI data-form identifies situations that need careful consideration. One of these is when a member has died. This blog provides some background information about how ECPI will be calculated in that eventuality. If the account-based pension is reversionary, the ECPI entitlement continues on the... Continue reading
Posted Jul 9, 2018 at NetActuary
While NetActuary will diligently work to ensure administrators achieve appropriate ECPI outcomes taking recent changes into account, this note will provide useful background information – especially with “deemed segregation” and “disregarded small fund assets”. No comments will be included below on funds that include legacy defined pensions (a separate note... Continue reading
Posted Jul 1, 2018 at NetActuary
NetActuary is back in the SMSF Actuarial certificate business! Yes, this has been a long wait!! That is even more reason for a celebration you too can share. A number of initiatives are planned for the coming months. As an opening special all account-based pension actuarial certificates submitted in the... Continue reading
Posted Jul 1, 2018 at NetActuary
The 2018-19 allowable income and asset thresholds for a full Age Pension are now available. From 1/7/2018 the allowable income threshold will increase for singles from $168.00 p.f. to $172.00 p.f. For couples the increase is from $300.00 p.f. to $304.00 p.f. Deeming lower limit has increased from $50,200 to... Continue reading
Posted Jun 16, 2018 at NetActuary
In a similar manner to superannuation funds needing to have an investment strategy, there will be a requirement to satisfy a “retirement income covenant”. This basically codifies the requirements and obligations for trustees to help improve retirement outcomes. The implementation date is likely to be 01/07/2020. The funds will need... Continue reading
Posted Jun 6, 2018 at NetActuary
The recent legislation changes have failed to adequately consider legacy pensions. There are multiple issues where this is now becoming evident. This blog details a few that practitioners need to watch. Market-linked pensions (term allocated pensions) are treated as “capped defined benefit income streams” where they were in place before... Continue reading
Posted May 20, 2018 at NetActuary
Yesterday a person asked me what were “disregarded small funds assets” and their relevance to actuarial certificates for exempt current pension income. In essence, where you have a complying SMSF with at least one superannuation interest in retirement phase AND just before the start of the year one person had... Continue reading
Posted May 13, 2018 at NetActuary
An SMSF-friendly Budget is the good news coming out of the 2018-19 Federal Budget. With SMSF members still working through the wide-reaching and complex superannuation changes which took effect from 1 July 2017, this Federal Budget will provide much needed stability while looking to reduce costs for SMSFs and prove... Continue reading
Posted May 8, 2018 at NetActuary
As the planning duration on lifetime legacy pensions in SMSFs reduces, the investment philosophy tends to become more conservative. The SMSFs with legacy pensions we have been reviewing currently have quite high cash holdings. It’s important not to overstate the investment philosophy. Growth will have a better tax percentage than... Continue reading
Posted Apr 9, 2018 at NetActuary
Recently it has been observed that to carry out the management of an SMSF one needs to know more about the client. The Total Super Balance and its ramifications for non-concessional contributions is one such example. In a similar vein – and with even more importance – the same applies... Continue reading
Posted Mar 25, 2018 at NetActuary
In a recent blog I showed how a small procedural implementation difference could result in greatly different tax outcomes for the client. At the same time, I wondered how automated actuarial certificate systems would solve this dilemma appropriately. The answer (upon additional research) is worse than I expected – it... Continue reading
Posted Mar 18, 2018 at NetActuary
NetActuary has a particular interest in legacy pensions. While SMSFs have not been able to directly issue defined pensions since 01/01/2006, quite a few of this type of pension still exist. We have (in the past few weeks) been assisting administrators get ready for a new level of support on... Continue reading
Posted Mar 12, 2018 at NetActuary
Every time the government changes the rules, there is a last minute rush by people to enjoy the grandfathered option. Already there are signs this is happening with the Limited Recourse Borrowing Arrangements (LRBA) changes from 1st July, 2018. To be ready for this, NetActuary has a new enhanced SMSF... Continue reading
Posted Mar 10, 2018 at NetActuary
Your SMSF clients would be horrified to realise that a small difference in how one starts a pension could result in considerably more investment tax being paid. We have gotten used to the idea that capital gains tax can vary markedly depending on whether the realization takes place in accumulation... Continue reading
Posted Feb 28, 2018 at NetActuary
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 Feb 19, 2018 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