Wealthy retirees have to double their super fund withdrawals on July 1, and advisers say they are using it to speed up generational wealth transfers.
are planning to gift the extra money to their children and grandkids as high interest rates accelerate generational wealth transfers, financial advisers say.
The drawdown rate currently ranges from 2 per cent to 7 per cent depending on the retiree’s age, meaning the increase will take it to 4 per cent to 14 per cent. “They’re trying to get their children more involved – they’re transferring a legacy, and thinking about how they educate the next generation,” he said.
“They’re comfortable, but they see their children trying to get out of the rental rat race and into the property. So, there’ll be younger people who are beneficiaries of the transition of wealth. It could even just be a little bit – $20,000, $30,000 or $40,000.”would accelerate this rate of transfer, said Jonathan Philpot, wealth management partner at HLB Mann Judd, particularly in expensive areas like Sydney and Melbourne.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
From superannuation to working from home — these are the July 1 financial changesFrom July 1, Australians are looking at a raft of financial changes. Here's a breakdown of each change happening from July 1.
Read more »
Big bonuses coming your way from four key super changesHigher caps mean you can ramp up non-concessional contributions, retirees can begin pensions with more tax-free money and younger savers get a bigger kick-start.
Read more »
‘Play by the rules': Warning to child care centres as new subsidies kick inAs Labor's Cheaper Child Care subsidies kick in and save families an average $1700, the consumer watchdog is monitoring centres to ensure parents aren't exploited and 'get value for money'.
Read more »
This economist has nailed 11 rate calls in a row. Here’s his latestGeorge Tharenou is on a hot streak, having correctly called every Reserve Bank rate decision since July 2022, despite the central bank shifting its narrative regularly.
Read more »
Your hip pocket is about to be hit by a raft of changes. This is what you need to knowThe start of the new financial year doesn&x27;t just mean tax returns – there&x27;s a range of other changes coming on July 1.
Read more »
Why 2023 is the year of the trophy home - realestate.com.auThe trophy home and its extraordinary lifestyle benefits are the new must-have for the ultra wealthy as the financial year ends, as they fetch huge prices and massive profits in no time at all.
Read more »