So What Does The Budget Mean For You?
Much has been written about the Abbott Government’s recent first Budget. It will significantly impact many groups of Australians – in a number of different ways. This budget further increases the need for people to seek financial advice in order to maximise their personal financial position.
At a high level, the budget measures are designed to spread the load of reducing the Budget deficit across nearly all adult Australians. With less disposable income, people may review their ability to afford insurances and may have less capacity to fund financial investments, reduce personal borrowings or make additional contributions to super. It is critical that you are familiar with exactly how the budget impacts your personal situation.
There were no legislative changes to the superannuation system announced in the Budget. However, the age at which people born after 1965 can access the age pension is being lifted to 70. This suggests that the preservation age – that is, the age at which people can access their superannuation – may also rise to 70 in subsequent budgets. People in this age group may need to seek financial advice on how to build investments outside the superannuation environment as well as inside.
Reductions in welfare support to those under the age of 30 may increase the reliance on parents. There is a generation of young Australians who move out and then go back into their parents’ homes as they struggle to establish their own financial independence. With increased costs for tertiary education, reduced welfare for those looking for work and less incentive to save to fund the purchase of a first home, it seems likely that many young Australians will be relying more heavily and for longer on their parents.
Now, more than ever, people need to take control of their own financial position and their preparations for retirement. If this has not been a priority for you or members of your family in the past, this Budget suggests that the time has come to take action. The best way to do this is to arrange a consultation your Financial Adviser.
If you do have a financial plan in place, make sure you schedule a review with your Financial Adviser to determine what impact, if any, this budget will have on your individual situation.
If you do not have a current financial plan that you are confident will achieve your lifestyle goals, now is an ideal time to rectify this situation.
Your situation is unique to you and financial advice needs to be tailored to your goals and situation. Why not call your Matrix Financial Adviser and discuss your particular situation?
The advice is general in nature only and does not take into consideration your financial situation, goals or needs. Please seek advice prior to acting on this information.