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3 clusters · 15 sources · 11 days · First seen · Last updated

Retirement and pension trends in Australia and UK

Overview

Retirees in Australia and the United Kingdom continue to navigate shifting financial landscapes. In the UK, more than one million pensioners are paying income tax at rates of 40% or higher, a figure that has more than doubled since the 2021/22 tax year. This trend is driven by fiscal drag—where frozen tax thresholds meet rising pension incomes from the triple lock policy—and is compounded by government changes to benefits such as Winter Fuel Payments and the Warm Home Discount.

In Australia, research from the Association of Superannuation Funds of Australia (ASFA) shows a trend toward increased self-sufficiency. The proportion of people over 65 receiving a Centrelink pension has decreased from 70% in 2012 to 56%. While average superannuation balances for those aged 60 to 64 have reached $371,379, concerns persist regarding retirement readiness among women and small-business owners.

Recent data highlights widespread anxiety among Australians regarding the adequacy of their superannuation, with many fearing they may run out of cash. To combat this, experts suggest utilizing superannuation for passive income due to its favorable tax treatment, which can be as low as 0% during retirement. To meet specific annual income goals, some investors are looking toward ASX shares and sustainable dividend yields from companies such as Telstra Group Ltd or Aurizon Holdings Ltd, rather than chasing high immediate yields.

Entities

Association of Superannuation Funds of Australia · ASX · Department for Work and Pensions · SMSF Association · Peter Burgess

Timeline

  1. 4 days ago

    [BUSINESS] 2 sources
    Australian superannuation and retirement income planning

    Australians face growing concerns over retirement funding, utilizing superannuation and ASX shares to build passive income through tax-effective, dividend-paying investments.

  2. 12 days ago

    [BUSINESS] 11 sources
    Pensioners face rising tax burdens and shifting retirement landscapes

    Pensioners in the UK face rising tax burdens due to frozen thresholds, while Australians see shifting retirement trends as superannuation balances grow and reliance on public pensions declines.

  3. 15 days ago

    [BUSINESS] 2 sources
    Australian superannuation balances rise as pension reliance falls

    ASFA research shows Australian retirees are relying less on the age pension as superannuation balances rise, with average balances for those aged 60-64 reaching $371,379.

Sources

cityam.com · communitynews.com.au · europesays.com · fool.com.au · independent.co.uk · iNews.co.uk · internewscast.com · keighleynews.co.uk · overlandjournal.com · smartcompany.com.au · smsfadviser.com · smsmagazine.com.au · startsat60.com · stroudnewsandjournal.co.uk · thesenior.com.au

This summary has been updated 1 time: see revision history