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ISSUE 5 MARCH 2015

Retirement Update

RetiRement income GoveRnment technoloGy Pension livinG costs budGet sPendinG RetiRement RiGhts health PRotect the Pension suPeR leGal cooKinG deals discounts social money-savinG diaRy dates and moRe...

Facing up to your retirement shortfall

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YourLifeChoices Retirement Update March 2015 3

Published by: Indigo Arch Pty LtdPublisher: Kaye Fallick Editor: Debbie McTaggart Assistant Editor: Lesh Karan Designer: Word-of-Mouth CreativePhone: 61 3 9885 4935 Email: admin@yourlifechoices.com.auWeb: www.yourlifechoices.com.au

All rights reserved, no parts of this book may be printed, reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, recording or otherwise, without the permission in writing from the publisher, with the exception of short extractions for review purposes.

IMPORTANT DISCLAIMERNo person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is distributed on the terms and understanding that (1) the publisher, authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any omission from this publication; and (2) the publisher is not engaged in rendering legal, accounting, financial, professional or other advice or services. The publisher and the authors, consultants and editors expressly disclaim all and any liability and responsibility to any person, whether a subscriber or reader of this publication or not, in respect of anything, and of the consequences of anything done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. Without limiting the generality of the above, no publisher, author, consultant or editor shall have any responsibility for any act of omission of any author, consultant or editor.Copyright Indigo Arch Pty Ltd 2015

FRom the editoR

WelcoMeThe ‘new year’ is well and truly underway. So there’s no

better time to address the issues that can prevent you from achieving the type of retirement you want.

The onus on funding retirement has definitely switched to the individual. This means you may need to be more proactive in addressing any possible funding shortfall. First, of course, the question of whether it is even possible to fix a retirement shortfall must be answered.

While Kaye might not have all the answers, she does know a thing or two about taking control of your retirement needs. And SuperRatings Jeff Bresnahan believes that it’s never too late to address and identify a shortfall in superannuation. While for those looking for alternative means to accumulate additional retirement funding, Richard Shermon explains the process of starting a transition-to-retirement pension.

A visit to a financial planner is often the first step in addressing any funding shortfalls, but this can be expensive. Craig Hall details the different types of fees charged and Maurice Patane guides you through the process of choosing the right planner.

Age Discrimination and Disability Commissioner Susan Ryan shows you how to dump the stereotypes often attributed to older people. Meanwhile, for those who are considering retraining for a longer work life, Leon suggests some careers that will boom in the near future. And Amelia details the technology you will need to master should you want to remain employable.

Also in this issue, Lesh looks after your wellbeing with tips on how to live a longer and healthier life. And Brenda Palmer shares her inspirational story on how life can be wonderfully fulfilling, even at the age of 83. For those embarking on a new relationship, our expert Jo Lamble examines whether living together is something worth considering. And Slater and Gordon’s Rod Cunich warns about the pitfalls of not updating your Will when a new love comes on the scene.

Of course, there are the usual Pension and Government updates, as well as the ASFA Retirement Standard to compare your living costs. And if you’re looking for a suggestion for dinner on a budget, Ian Parmenter offers his Lemon Honey Chicken as a delicious option.

Helping you get your retirement back on track,

Debbie McTaggart Editor

YourLifeChoices Retirement Update March 20154

FRom the PublisheR

Pension Porkies v the factsAround 70 per cent of Australians aged 65

or over will fund their retirement with the support of a full or part Age Pension. As

the Retirement Living Standard on page eight reveals the (approximately) 40 per cent on a full Age Pension, will be living ‘below’ a modest lifestyle – aka poverty. Should you receive a part Age Pension (about 30 per cent), depending upon the level of entitlement, you will experience a modest to comfortable existence. Hardly the life of Reilly, but better than many. So any changes to the twice-yearly pension indexation will have a major impact on your future income.

It is for this reason that we have, on behalf of our 125,000 members, created a robust campaign to stop the current government’s proposed changes to pension indexation from being passed by the Upper House. Our campaign includes a joint petition with online activist organisation GetUp, to which we now have more than 50,000 signatures.

It is worth reiterating the facts of indexation. The pension is indexed with reference to three separate measures. Rates are indexed to the rise in the Consumer Price Index (CPI) or the Pensioner and Beneficiary Living Cost Index (PBLCI), whichever is greater.

After indexation is applied, the payment rate is then benchmarked against a percentage of the Male Total Average Weekly Earnings (MTAWE). The single rate of pension equals 27.7 per cent of the MTAWE and the combined rate for a couple equals 41.76 per cent. If, once initial indexation is applied, the rate is less than the benchmark to the MTAWE, the payment rate will be lifted to equal the agreed percentage. This is to ensure pensioners maintain

a certain standard of living, relative to the rest of the population.

Reducing the indexation to CPI alone would see a real loss of $80 per week within 10 years.

These are the facts. And they are very much at odds with the statements in the press release issued by Minister for Social Services Scott Morrison on 20 March.

In particular, the Minister claimed that, “770,000 Australians … would receive an extra $83.20 as a result of this Coalition Government decision.”

This is false – indexation, first introduced by the Fraser Government, is scheduled regardless of which government is in power and has nothing to do with any Abbott Government initiative.

A second claim was that, had pensions only been indexed to MTAWE, then pensioners would have been worse off.

This is both false and irrelevant. As explained above, there are three measures of indexation for the pension – and no suggestion that only one, the MTAWE, should be used.

Of course, the real fact is that age pensioners in Australia are doing it tough. Our retirement income system is neither sustainable nor equitable.

Kaye Fallick Publisher

From the Editor 3Pension porkies v the facts 4Government update 5Fixing your retirement shortfall 6Your retirement living costs 8Your retirement budget 9Transition to retirement explained 10How to live longer 13Technology to stay employed 14Let’s dump stereotyping 15

How to choose a planner 16Pension update 18Avoiding a super shortfall 19Financial fees explained 20New relationship, new Will? 22Ian’s lemon honey chicken 24Deals and discounts 25Careers for the future 26Should you live together? 27Lessons learned: Brenda Palmer 28Diary dates 30

contents

YourLifeChoices Retirement Update March 2015 5

GoveRnment uPdate

Over the coming months, much of the focus on government policy will be on the delivery of the 2015 Federal Budget. But is there anything else you should know?

March UPDate

Holiday reporting and payment datesThe Easter holiday will result in the closure of Human Services offices, unavailability of government call centre services and may also mean altered reporting and payment dates for government benefits.

To find out details of closures and the changes to any reporting and payment dates, visit YourLifeChoices.

2015/16 Federal BudgetAlthough no date has been confirmed for the much-anticipated second Federal Budget to be delivered by Treasurer Joe Hockey, it is historically earmarked for the second Tuesday in May. This means that the 2015/16 Federal Budget is due on 12 May 2015. YourLifeChoices will plan to participate in the budget lock-up again, in order to bring you the latest, most relevant budget details first.

For more details, visit Treasury.gov.au

Financial Information ServiceUnderstanding the effect your financial decisions can have on your retirement income is vital if you are to have enough money to fund your post-work lifestyle. While consulting an independent financial advisor is often the best way to achieve this, recent media reports surrounding the financial planning sector may have made you hesitant to seek advice.

Another option is the Human Services Financial Information Service, which regularly runs a series of seminars covering the topics that are most relevant to retirees and pre-retirees. Booking is essential. You can find details of seminars being run in your area by visiting HumanServices.gov.au.

Reduction in deeming ratesThe Federal Government announced that from 20 March 2015, deeming rates – the average rate assumed to be returned on investments – would be reduced. The rates have been cut by 0.25 per cent and match the reduction in the cash rate announced by the Reserve Bank of Australia on 3 February 2015. For more details on the deeming rate that applies to each asset threshold, visit YourLifeChoices.

YourLifeChoices Retirement Update March 20156

RetiRement shoRtFall

fiX YoUr retireMent shortfall?

Retirement income has become a hot topic this year – and about time, too. Kaye Fallick shows you ways to fix it, should you have a shortfall.

Y ourLifeChoices has been championing the cause of Australian retirees for 15 years, yet we still observe many people experiencing

ongoing confusion and disempowerment as they plan their retirement – or try to make ends meet after they have left full-time work.

Why is this so?

This is the one amongst many questions we asked our 120,000 members.

Last year we received 21,500 responses to 118 questions, across seven online surveys. The feedback we received on the concerns and challenges of retirement included:• Australia’s retirement income system is

unnecessarily complex• it is skewed to reward those with the most money

and to punish those with the least• most of our members (of whom 86 per cent are

aged between 50 and 75) consider themselves underfunded for a comfortable retirement

• our members are also concerned that they may not have sufficient savings to even support a

modest retirement lifestyle• should our members suffer

from unexpected ill health, they will struggle to cover their bills.

If you, too, are in this situation, here are some useful strategies to help you improve on your retirement bottom line.

Get seriousMany Australians seem to think of retirement in the same way they think of New Zealand – a great place to visit, but there’s no real urgency; it’ll always be there.

Yes, retirement will be on your horizon in the foreseeable future, but failing to plan early for retirement income damages your prospects for a reasonable post-work lifestyle.

And failing to understand your ‘key markers’ is also likely to limit your potential nest egg. Your key markers are:• age• likely longevity (try this five-minute quiz)• current savings (superannuation, private savings,

assets apart from the family home).

These numbers can be fed into a very basic ASIC MoneySmart calculator

to help you understand the first piece of important information – whether or not you will qualify for an Age Pension. And if you do qualify, whether it will be a full or part pension.

Is it possible to

YourLifeChoices Retirement Update March 2015 7

RetiRement shoRtFall

Understand your entitlementsSo now you have a sense of the level of income you are likely to receive in the form of a full, part or no Age Pension. But this is only part of the picture when it comes to your entitlements. Concession cards, Pension Supplement and Seniors Supplement are just some of the ‘perks’ that can make funding your retirement a little more affordable.

Save harderBy now, after reviewing your likely lifespan and your savings, you may learn that you will run out of money about 10 years too soon. If you’re still working, this exercise is likely to be a wakeup call for putting more money into your superannuation. And if you are trying to get more ‘bang for your buck’, you may be interested in recent research that reveals industry super funds remain the best value for retirement savings.

Older workers can use two top-level strategies to boost their retirement nest eggs. These are salary sacrifice and Transition to Retirement pensions (TTRs). Before embarking on either strategy, you should always seek independent financial advice.

Downsize smartlyWhere you live contributes to your mental wellbeing – particularly when you enter retirement and want to have family, friends, trusted medical practitioners and long-standing community support nearby. So, to downsize for the sake of it and end up in something that resembles the size of a dog box on the 21st floor, pining for your beloved garden, makes no sense at all. But there are many other ways to ‘skin’ the downsizing cat.

You may learn that you will run out of money

about 10 years too soon.

MOREAs always, YourLifeChoices is here to assist with independent information, resources and Q&As on your retirement needs.

At first glance, the sale of your home to downsize may make sense, but you need to factor in many expenses – which can amount to tens of thousands of dollars – as well as the stress of the whole selling-and-buying process.

An equity release product, such as a reverse mortgage or homesafe scheme, may suit you better.

And if you don’t have the desire to sell part of your home to a bank or lending institution, why not consider taking in a boarder? Or you could let spare rooms – ones that are often no more than a shrine to adult children who moved out more than 15 years ago – on a service such as Airbnb.

Above all, educate yourselfOver the past 30 years there has been a slow but steady shift of the risk of retirement income from national governments to individuals. You are actually on your own now. Yes, the Age Pension provides a safety net, but with legislation before the Senate to raise the pension eligibility age to 70, many years of self-funding may be ahead of you. Act now to ensure that you are fully aware of how our retirement system works, and work out what you can do to ensure you receive maximum value for your years of hard work.

DISCLAIMER

YourLifeChoices Retirement Update March 20158

youR RetiRement livinG costs

DeceMber qUarter costsIn March, the Association of Super Funds of Australia (ASFA) released the ASFA Retirement Standard. ASFA has kindly allowed YourLifeChoices to share this information (for the December quarter 2014).

Expenditure items Comfortable couple

Modest couple

Comfortable single female

Modest single female

Building and contents insurance 30.20 23.91 25.17 24.00Rates 35.46 30.20 30.20 30.31

Home improvements 10.06 0.00 10.06 0.00Repairs and maintenance 17.61 12.58 15.09 15.16

Total housing 93.33 66.68 80.52 69.47

Electricity and gas 56.53 54.55 41.68 41.07Total energy 56.53 54.55 41.68 41.07

Food – groceries and other fresh food 198.32 159.76 110.18 77.13Total food 198.32 159.76 110.18 77.13

Bundle of home phone, broadband, mobile 32.60 16.32 25.62 9.32Total communications 32.60 16.32 25.62 9.32

Household cleaning and other supplies 25.60 15.36 18.43 10.24Cosmetic and personal care items 3.05 2.94 6.86 1.97

Barber or hairdresser 20.48 8.83 14.71 4.93Music and CDs 2.14 0.00 0.32 0.00

Newspapers and magazines 8.20 1.90 8.01 2.40Computer, printer, software 4.20 4.20 4.20 4.20

Household appliances 11.75 2.98 10.01 2.98Pest control, alarm service 12.57 0.00 12.57 0.00

Total household goods and services 88.00 36.21 75.12 26.70

Clothing 57.43 28.71 38.28 17.69Total clothing and footwear 57.43 28.71 38.28 17.69

Car transport and running costs 137.30 91.26 137.30 91.26Public transport 5.32 5.32 2.66 2.66Total transport 142.62 96.58 139.96 93.92

Health insurance 77.94 62.50 39.65 31.25Chemist 22.91 3.13 12.64 1.76

Co-payment and out of pocket 40.21 12.12 27.63 7.28Total health services 141.06 77.75 79.93 40.29

Membership clubs 9.73 1.95 4.89 0.98TV, DVD, digital camera 1.80 0.90 1.80 0.90

Alcohol consumed in home (or equivalent spent) 40.63 15.24 25.39 10.16Lunches and dinners out 81.26 25.29 60.71 30.36

Cinema, plays, sport and day trips 13.62 18.97 6.81 5.84Domestic vacations 77.85 36.97 66.17 18.49Overseas vacations 54.48 0.00 36.97 0.00

Sundry items 30.05 11.67 23.05 7.78Total leisure 309.42 111.00 225.79 74.51

Gifts and/or alcohol or tobacco 0.00 0.00 0.00 0.00

Total weekly expenditure $1,119.32 $647.57 $817.07 $450.09Total annual expenditure $58,364 $33,766 $42,604 $23,469

Weekly expenditure IncreasedNo change Decreased

YourLifeChoices Retirement Update March 2015 9

youR RetiRement budGet

Expenditure items Weekly Monthly Annual

Building and contents insuranceRates

Home improvementsRepairs and maintenance

Total housing

Electricity and gasTotal energy

Food – groceries and other fresh foodTotal food

Bundle of home phone, broadband, mobileTotal communications

Household cleaning and other suppliesCosmetic and personal care items

Barber or hairdresserMusic and CDs

Newspapers and magazinesComputer, printer, software

Household appliancesPest control, alarm service

Total household goods and services

ClothingTotal clothing and footwear

Car transport and running costsPublic transportTotal transport

Health insuranceChemist

Co-payment and out of pocketTotal health services

Membership clubsTV, DVD, digital camera

Alcohol consumed in home (or equivalent spent)

Lunches and dinners outCinema, plays, sport and day trips

Domestic vacationsOverseas vacations

Sundry itemsTotal leisure

Gifts and/or alcohol or tobacco

Total expenditure

hoW Does YoUr sPenDing coMPare?

YourLifeChoices Retirement Update March 201510

Richard Shermon explains that in transitioning to retirement, it’s just as important to commit to lifestyle changes as it is to managing your future income.

tiMe to consiDer a transition to retireMent?

tRansition to RetiRement

The transitioning-to-retirement approach offers a measured and step-by-step process, both emotionally and financially, helping

you to enter your next, crucial life stage with less stress.

These simple questions will help you to test your readiness to retire:

• Have I achieved my goals in the workplace?

• Do I have other employment avenues I wish to explore?

• Am I ready to have more time on my hands?

• How long do I need my retirement funding to last?

• Do I have contingency plans should my money run out?

• What type of retirement am I hoping to achieve?

• Have I shared my plans with my significant others?

• Am I organised enough for a lifetime of Saturdays?

So, if you’re satisfied that you’re ready to progress with a transition-to-retirement (TTR) strategy, then here are the details you need to know.

What exactly is a TTR pension? The TTR pension involves using part, or all of your accumulated superannuation fund, to start a pension. This pension, known as an income stream, can be started by people who have reached super

preservation age – which is 55 for those born before 1 July 1960

– but must be funded from your existing superannuation money. The annual income that’s drawn must be above a prescribed minimum level – which is currently four per cent of the fund balance

– but less than 10 per cent of the fund balance for those under the age of 65.

What are the key advantages of starting a TTR pension?The first major benefit is that you will start to receive a regular pension payment, which you can use to supplement your income. This may also open up a number of employment options. For example, the extra income could help you to reduce the number of hours you work, as a way to ease you towards full retirement in the years ahead. Alternatively, you could perhaps consider moving to a less stressful, possibly lower-paid job knowing you can still meet your monthly expenses. You may have even considered starting your own small business. The additional pension income may help with this transition and provide you with some additional financial support until your new venture generates enough income to support your needs.

There are also several tax benefits associated with a TTR pension. Importantly, any investment earnings on the superannuation balance you move into a TTR pension will no longer be taxed, saving you up to 15 per cent in tax.

When you reach the age of 60, the payments from the pension are also tax-free. Even before you reach 60 years, part of the pension may still be tax-free (the tax-free component) with the remaining portion being treated as taxable income (the taxable component). The good news is that this taxable component comes with a 15 per cent tax offset, which reduces the tax paid on this part of the

The first major benefit is that you will start to

receive a regular pension payment…

tRansition to RetiRement

YourLifeChoices Retirement Update March 2015 11

MOREVisit YourLifeChoices to read Richard’s full business profile.

To learn more about TTR, visit Reserve Financial Consulting and YourLifeChoices.

This article provides general information only. It does not take the place of professional financial and taxation advice. See an accredited financial professional for individual-based advice. (Read full disclaimer.)

income. Therefore, if you have a low marginal tax rate, this strategy can still make a lot of sense for those aged between 55 and 60, from a tax-saving point of view. If you are over 60, then this is almost always a beneficial tax strategy to consider.

Some people leverage these tax advantages from starting a pension without actually making any changes to their work patterns or lifestyle. This very popular strategy is to effectively use the extra income from your TTR pension to increase the amount of salary you sacrifice to your superannuation or the personal super contributions you make. This would then allow you to maintain your after-tax income at the same time as increasing your overall retirement savings. This works because the tax you are paying on your concessional contributions to superannuation is only 15 per cent compared with your marginal tax rate, which can be as high as 49 per cent.

So by structuring your income differently, putting more of your pre-tax salary into super and receiving regular income from both your employer and a TTR pension, you can pay significantly less tax. That’s more super for when you retire, without having to give up any income today.

Now, there are limits to this strategy, so you should take note of the current allowable level of concessional contributions.

In summary, if you are aged over 55 and considering how retirement might work best for you, then you should certainly obtain professional financial advice on whether a TTR approach is a suitable strategy.

*Provider must have professional qualifications recognised by the health insurer. ^Waiting periods apply for services not currently covered. Any benefit limits already used with the current fund will apply to your Apia health insurance policy.

This Apia health insurance is issued by nib health funds limited ABN 83 000 124 381 (nib) a registered private health insurer and is arranged by Australian Pensioners Insurance Agency Pty Ltd (Apia) ABN 14 099 650 996 as authorised agent of nib.

health cover DesigneD for over 50s

With flexible cover, Apia health insurance is designed for over 50s – and that makes sense.

sPonsoRed messaGe FRom aPia

YourLifeChoices Retirement Update March 201512

MORETo obtain a quote, call Apia on 13 50 50 or visit apia.com.au/health for more information.

A pia is now offering health cover specifically suited to over 50 year olds. Even the Essential hospital cover ensures you’re

looked after for the important things such as heart surgery and joint replacement. So now’s the right time to check if your current cover reflects your changing lifestyle and needs.

Tailored packages to suit you Choose the right bundle of cover from a range of Hospital and Extras to suit your budget and lifestyle. You can also choose an extras cover with higher annual limits on services such as optical and dental – the services that people use most.

Your health cover, your choice of providerWith Apia health insurance, you’ll have a choice of Extras providers – that is, visit the dentist or optometrist you’d like to see, not the one your health fund tells you to see.*

Switching to Apia health insurance is simple:

• there are no waiting periods – if you’re with another provider, we’ll recognise waiting periods already served so you can claim straight away^

• you’ll receive up to a four per cent discount – when you pay by Direct Debit from a bank account

• you won’t have to transfer your paperwork – we’ll get in touch with your current fund and take care of all the paperwork, making it simple for you to switch.

If you’ve just received a price increase from your current health fund, now’s the perfect time to get a quote from Apia, with insurance cover specifically designed for over 50s.

YourLifeChoices Retirement Update March 2015 13

health uPdate

These practical and effective tips will not only make your life healthier, but also longer.

hoW to live longer

Many of us are aware of the obvious life-extending actions: avoid smoking and drinking too much alcohol, exercise

regularly, and eat plenty of fruit and vegetables. But is there more you can do? These four practical and proven tips confirm that you can.

Eat just enoughEating too much food – even if it’s all healthy – has its consequences. Studies show that eating less could add years to your life. One of the most effective tips to avoid overeating is to eat without distractions. Consider turning off the TV or not reading while you eat. Being conscious of your food and the actual act of eating helps you to recognise when you are full. You’ll also lose weight and help to stave-off lifestyle diseases such as type 2 diabetes.The Huffington Post has more.

Sit lessRecent studies show that sitting for hours on end can literally kill you. It helps to become more conscious of how much you move in a day, and if it’s not enough, do a little more. For example, take the stairs instead of the escalator or lift, park your car a little further from your destination, walk to the next bus stop, pace while talking on the phone, or get up to stretch for a few minutes after each hour of sitting.Read more at ScienceDaily.

Turn off the TVA 2014 study published in the Journal of the American Heart Association found that the risk of death was two times higher for participants who watched three or more hours of TV at a time, even when the study authors took into account other factors related to early death. So instead of plonking in front of the idiot box, why not call a friend, garden, cook, clean or declutter your home?Learn more at Time.com.

Maintain contactA 2013 study, which tracked 6500 British men and women aged 52 and older, found that feeling lonely and being socially isolated raised the risk of death. However, it was only social isolation – measured as the number of times participants had contact with family and friends, and contributed to organisations outside of work – that appeared to increase the risk of death, after other lifestyle factors had been taken into account. So why not consider making more regular contact with family and friends? Or maybe join a club or hobby group? You could even take a fun, in-person short course, such as a language class – as Facebook friends won’t cut it unless they’re real-life ones too.

Read more at the American Psychological Association.

YourLifeChoices Retirement Update March 201514

tech uPdate

Applying for work is not only competitive, but also a continuously evolving skill. These five technologies may help you to secure your next role.

technologY to keeP YoU eMPloYeD

Social media Social media is a great way to stay in touch with relatives and friends, but it has also become an important platform for jobseekers to raise their profiles, look for jobs and build professional networks. According to Telstra research, more than a quarter of Australian employers use social networking sites to look for potential employees.

Among the social media sites, such as Facebook and Twitter, employers particularly often favour LinkedIn, a business-orientated social networking service for job hunters to showcase their credentials, and to find and assess jobseekers. So having a LinkedIn profile may be worth your while.

Read more at Job Hunt.

The Google suiteWith many people working from home, businesses rely on workers to know their way around popular file-transferring software so staff can immediately access information from wherever they are based.

Many businesses use the Google suite of applications for sharing organisational information online, so having skills in Gmail, Google Drive, Google Calendar and Google Plus is a big advantage.

Read more at Digital Trends.

Hands-free controls If your workload increases or you need to use your time more smartly, hands-free controls can become very valuable. Voice controls and speech recognition programs are growing in both accuracy and popularity. Dragon software offers an alternative to word processing, emailing and web browsing, saving you time and helping those less adept with traditional computers. The software uses voice recognition capabilities and allows you to dictate letters, memos and other documents straight to the computer.

Read more at Nuance.

Video conferencing The beauty of video conferencing is that meetings can be held all over the world. This means less interstate and round-the-world travel, and more scope for employees to work from home or on the go. Video conferencing also provides an alternative to the traditional phone call, allowing users to interact on a more personal level and share information quickly. Popular video-conferencing services are Skype and FaceTime.

Read more at Tech Hive.

The cloud In a time when the world’s most valuable information is created and stored online, it’s good to know there’s a platform that can keep this information safe. Cloud-computing services, such as iCloud and Google storage, use hardware and software over the internet to store data and perform tasks. Almost anything can be stored in the cloud, from images and videos, to emails and documents. Businesses are continually looking for ways to save on software costs and implement systems that will back up information securely. Understanding how cloud computing works is becoming a must.

Read more at YourLifeChoices.

YourLifeChoices Retirement Update March 2015 15

RetiRement RiGhts

Our Age and Disability Discrimination Commissioner Susan Ryan shows how you can help to dump the unfair stereotyping of older people.

DUMP the stereotYPing

MOREIf you missed the Australian Human Rights Commission’s ‘Power of Oldness’ video on TV, you can view it here.

For more information on unfair stereotyping of older people, visit HumanRights.gov.au.

We all recognise those ‘older age’ stereotypes. We see them everywhere in the media and advertising: silly, forgetful

older people unable to choose an insurance product or a healthy diet. What many people don’t realise is that these stereotypes can lead to serious discrimination.

Crucially, in the jobs’ market, but also in shops and restaurants and other services, older people are ignored or treated poorly. Stereotypes distort reality by generalising what might be the case in just a few.

The view that ‘all older people are forgetful’ is usually applied to everyone over 50. Because of this, perfectly capable people are denied jobs. Businesses and the economy are the losers, as well as the capable older people forced into poverty.

Do all people over 65 have major health problems?

Facts show that many in this age group are fit and active and contributing, and will remain so for years to come. This older age group also records higher levels of personal happiness.

To tackle these stereotypes and discrimination, we needed evidence. Our research, ‘Fact or Fiction: Stereotypes of Older Australians’ provides this.

We found that too many Australians agree with wrong stereotypes about older people:• 59 per cent of Australians feel that older people

are more likely to be lonely or isolated• 52 per cent feel that older people are more likely

to be victims of crime• 51 per cent feel older people

are more likely to be forgetful• 43 per cent feel older

people don’t like being told what to do by someone younger.

Younger people are more likely to hold stereotypical views about older people and to display negative behaviour towards them.

Older Australians are vastly under-represented in the media – 14.2 per cent of the population are aged 65 or over, but people of that age are featured in only 4.7 per cent of advertising content, most often as frail or weak, as victims, or in poor health.

So, what should happen?

The media should represent older people realistically, in all their diversity. Advertisers should aim at real older people, not imagined stereotyped versions of them.

The rest of us can challenge stereotypical remarks, start conversations about the contributions of older people, and point to the many older people who you know in jobs and volunteering. And think of yourself thirty years down the track – where would you like to be?

YourLifeChoices Retirement Update March 201516

Finance Q&a

Want to find a financial planner who has your best interests at heart – rather than their hip pocket? Maurice Patane shows you how.

hoW to choose a Planner

Do you get paid anything from anyone other than

me…?

At a recent social gathering I met a lovely couple who after the usual ‘what do you do?’, openly shared their retirement plans

and decision to work with a financial planner after many years of managing their own finances. They were both smart, had a wealth of knowledge in their chosen vocation and spoke with such clarity and conviction on the issues relating to their industry. And, yet, it seemed ridiculous that they needed help making smart decisions about their money.

“Our very first meeting highlighted the blunders we had made collecting different investments over time with no game plan or, as we learned later, with no identifiable purpose. He [the adviser] took that pile of stuff and turned it into a plan.” They went on to say, “We assumed that what we did know was more important than what we didn’t know.”

In the same way it had taken them a lifetime to become confident in their own industry knowledge, the couple knew the adviser had also invested a lifetime to get to that same position. This was evident from the specific changes the adviser had recommended to maximise Centrelink benefits and minimise the amount of tax they were paying.

“More money in our pockets!”, they said with cheeky smiles on their faces.

The couple created a position where their money would outlive them, as opposed to them outliving

their money. This gave them a great deal of security and peace of mind to pursue their interests, instead of worrying about their money.

“Maurice”, they said, “we walked away with a

feeling of lightness, like the weight of the world had been lifted from our shoulders.

We now have more time than ever to spend with each other, our children and grandchildren.”

In their case, they have progressed further than what they would have on their own – tangibly and non-tangibly.

They described their adviser as having similar traits to those of a friend. “He meets with us every year, he listens, challenges our thinking and stops us from doing dumb things.”

In fact, personal finance is more personal than it is finance – a lot of decisions are emotional and feelings can be expensive. No matter how smart you are, you’re still human. You’ll still feel emotion around these incredibly important decisions, and to help you make the best decision possible, you may find it helps to work with someone who isn’t you.

Planning for your retirement is one of the most important financial decisions you will make in your lifetime. Whether you have a lot or little, it is just as important.

Finding a good adviser can take a long time, and you should consider meeting with more than one before you make a final decision.

Instead of looking to work with someone to make decisions for you, I would suggest finding someone with knowledge, who has your best interests at heart and who can provide a check and balance to your decisions.

Personally, I believe the best advisers have the ability to ask great questions – tough and thought-provoking questions, even questions that may make

YourLifeChoices Retirement Update March 2015 17

Finance Q&a

MOREDo you have a question for Maurice? Then send it to us now.

Maurice Patane Access Financial Management AFSL 229760 Ph (03) 9500 9988E info@accessfm.com.au

you uncomfortable – and then shut up and listen. This fast tracks their ability to understand what you care about and provide relevant solutions.

So, how do you find someone like this?

It’s not easy, but it’s worth it.

Unfortunately, this industry makes it difficult to understand who does what. So you need to determine whether you are working with a salesperson or an adviser. Salespeople have their interests tied to their product or company – that is, you wouldn’t expect a Ford salesperson to sell you a Holden.

On the other hand, an advisor puts your interests ahead of their own.

If you have any doubts, have an open conversation. Ask them about conflicts of interest. Ask them how they get paid. In fact, two questions you should ask are: • How much do I pay you? • Do you get paid anything from anyone other than

me as a result of our relationship or the products I buy from you?

What you’re trying to understand is: Was that the best product for me or was that product recommended because it gave a higher commission, a bonus or a free trip?

You see, advisers are either paid a commission, a fee or a combination of both, which may be deducted from your bank account or from the recommended product.

Of course, you should have a clear understanding of what you will receive – a mutual expectation. You need to take a close look at your plan and investments periodically, and make sure they match your goals.

Remember, this is not a foolproof way to find someone you can trust, but having these kinds of conversations will put you in a better place to carefully evaluate the nature of your relationship and act accordingly. Uncovering a potential conflict or determining that the adviser gets paid a commission doesn’t automatically mean it’s something bad – it’s just very important to know about it.

YourLifeChoices Retirement Update March 201518

Pension uPdate

Indexation of payment rates and thresholds have resulted in a raft of changes to pensions. So how will these affect you?

March UPDatePension payment rate increasesThe Age Pension, Carer Payment and Disability Support Pension payment rates increased on 20 March 2015, as a result of indexation with the Consumer Price Index and the Pension Beneficiary Living Cost Index, and benchmarking against the Male Total Average Weekly Earnings. For full Age Pensions, this indexation resulted in an increase of $5.90 for singles and $4.40 for each member of a couple, including the Pension Supplement.

To find out full details of the increases, visit YourLifeChoices.

Asset and income thresholdsThe asset and income thresholds for part Age Pensions have also been indexed, with rates taking effect on 20 March 2015. For those who have previously missed out on an Age Pension by the slimmest of margins, this could be good news.

The upper asset threshold for a single part Age Pension is now $775,500 for homeowners and $922,000 for non-homeowners.

The upper income threshold for a single part Age Pension is now $1880.40 per fortnight.

View the current asset thresholds. View the current income thresholds.

Seniors Supplement indexationSince the legislation to abolish the Seniors Supplement for self-funded retirees who hold a Commonwealth Seniors Health Card didn’t pass through the Senate, the quarterly payment has increased. To be paid shortly after 20 March 2015, the annual amount has increased to $894.40 for singles and $673.40 for each eligible member of a couple. To calculate the quarterly payment you should receive, you can find details of the applicable formula at HumanServices.gov.au.

Health Care Card qualifying limitsIf you don’t qualify for any Centrelink payments, you may still be entitled to a Low Income Health Care Card. Holders of this card can receive reduced-rate prescription medicines and other concessions offered by private companies, utilities, and state and local governments. To receive the card initially, your weekly income must be less than $527 if you are single and have no dependent children, and then must remain below $658.75 per week to retain the card.

To find out more, including the qualifying rate for couples, visit YourLifeChoices.

YourLifeChoices Retirement Update March 2015 19

suPeR uPdate

Superannuation tends to be a ‘set and forget’ investment for many, but as SuperRatings Jeff Bresnahan explains, this is a sure-fire way to a retirement-funding shortfall.

avoiDing a sUPerannUation shortfall

MOREFor more information, consider visiting:Supersavvy.com.auSuperratings.com.auMoneysmart.gov.au

With life expectancy improving steadily over the past few decades, it is important for people to reassess the adequacy of

their superannuation account balances, to support their chosen standard of living in their post-work years. This often involves choosing the right superannuation fund, including taking into account, at a minimum, investment performance and fees to avoid any surprises in retirement.

In addition, everyone’s financial circumstances are different. So it’s important to factor in your financial obligations, such as your mortgage and family needs, to ensure it remains appropriate for your personal situation.

During a year of mostly strong growth for the superannuation industry, it is important to assess how your investment choice within your chosen fund has fared relative to the industry median. In general terms, younger members tend to have a higher risk tolerance given they are at the beginning of their retirement journey. Therefore they are more inclined to invest in higher growth investment options, such as High Growth or Growth options, which invest greater portions in riskier assets, such as shares and property.

Conversely, the more mature members amongst us typically have a lower risk tolerance. Hence we are more likely to choose more conservative investment options to minimise the risk of losses in later life. With the average Balanced Option (being the default option for the majority of members) returning 12.6 per cent for the financial year ending 30 June 2014,

it is important to assess how strongly your superannuation fund has been performing on a regular basis.

Fees are also an important consideration for members when

choosing a superannuation fund. Through

SuperRatings research, we have seen an 8.4 per cent fall in the industry average fee on a $50,000 account

balance, from $728 to $667 in 2014. Members should remain vigilant and review the fees charged by their superannuation fund to ensure the fees paid remain value for money for the services provided.

A single and simple measure of this, which levels the playing field and accounts for the investment performance as well as fees charged, is via SuperRatings Net Benefit to Member calculation. This analyses the investment return achieved by your superannuation fund net of all fees and taxes levied.

Based on SuperRatings calculations, a member on a starting salary and account balance of $50,000 (with contributions made in line with superannuation guarantee) has achieved approximately $68,000 in earnings while being charged a total of $11,000 in fees over the past 10-year period. For time-poor Australians, it is very important to regularly review how much your superannuation fund is contributing to your retirement outcomes, especially given it is not unusual for members to hold multiple superannuation accounts.

YourLifeChoices Retirement Update March 201520

NICRI’s Craig Hall explains common financial fees, including how they’re charged and structured, for you to consider before you invest.

financial services fees

money exPlained

Many fees are applicable to financial products and services, and can be referred to in a number of ways as well as

incorporate a number of services. Some of the more common fees applying to investing and seeking financial advice are discussed below.

Investment transaction fees cover the costs of buying and selling investment assetsEntry/Exit fees – Entry fees are usually charged as a percentage of the amount invested. Exit fees are usually charged as a percentage of the amount withdrawn but may only be charged if withdrawals are made within a certain timeframe and/or if no entry fee was charged.

Unit price spread/margin – In unitised funds, the unit price can fluctuate according to the value of assets in the fund. When there is a spread, the unit withdrawal price is always lower than the unit-buying price at any given moment.

Switching fees – This fee may be charged when switching asset allocation within

the same fund or provider.

Brokerage/Real estate fees – Charged by stockbrokers, these can be a flat fee or be charged as a percentage of the

transaction amount. Real estate transactions also attract fees of a similar nature.

Investment management fees cover the costs of managing and administering the investmentThe Management Expense Ratio (MER) – This ratio enables the costs of managed investments to be compared. It shows what extra costs are incurred in using a managed fund structure instead of investing directly. The MER is not charged in addition to management fees.

Management fees – Fund managers research and rebalance the fund’s assets regularly. Management fees are generally charged as a percentage of the value of the fund’s assets. While there is no direct cost to the investor, the fee is included in calculating the fund’s unit price. The level of management fee can vary depending on the management style (active or passive) and the level of funds invested in growth or defensive assets.

Administration fees – These fees cover the cost of administering the fund, such as issuing statements, and meeting other trustee/fund requirements and obligations. Fees for similar services may be referred to by certain funds as ‘Asset Based’ or ‘Trustee fees’.

Platform fees – A platform enables investors to diversify over investment types such as direct investments, managed investments, cash accounts and superannuation under a single reporting system. Similar to an Administration fee, it covers the reporting and administrative costs.

Performance fees – This may be charged if the performance of the fund exceeds pre-determined benchmarks.

It is important to fully understand

all fees and charges that may be applicable…

YourLifeChoices Retirement Update March 2015 21

Entry/Exit fEEs Switching

feeSManageMent fees

Platform feesIMPLEMENTATION fEEs

Advice fees

MOREThe National Information Centre on Retirement Investments (NICRI) Inc. was an Australian, government-funded, independent consumer agency providing information to the general public on investment products. NICRI has now ceased to operate due to federal government funding cuts. The staff at NICRI would like to thank all who supported them and the organisation over the past 25 years.

money exPlained

Professional fees cover the costs of providing advice and maintaining portfoliosAdvice fees – These are charged by financial planners to provide professional advice. They cover the gathering of client information, research, formulation and presentation of a financial plan.

Ongoing service/Review fees – These fees are charged by financial planners to maintain client portfolios, which usually include research, periodic client reviews and ongoing adjustments to portfolios. Due to regulatory changes, these fees have effectively replaced commissions.

Commissions – Commissions are now banned under the Future of Financial Advice (FoFA) regulations. However, commissions may still apply under certain pre-existing arrangements and the sale of certain products. Commissions are usually charged as a percentage of the funds invested and are paid to the financial planner or other financial services intermediary. Trailing commissions, if applicable, are paid to financial planners while funds remain in an investment.

Accountant/auditor fees – Fees charged from these professionals may apply to investors for managing their finances, completing taxation returns and meeting compliance requirements for trustees of Self-Managed Superannuation Funds (SMSF).

Implementation fees – These may be charged to set-up and implement the recommendation of the planner. They may be included as part of an Advice Fee.

As you can see, there are many fees and costs to consider. When assessing an investment, it is important to fully understand all fees and charges that may be applicable, as providers may market their products based on low fees. For more information, contact your financial services provider or financial planner.

YourLifeChoices Retirement Update March 201522

leGal uPdate

Marriage kills Wills. Separation doesn’t. Nor does a new relationship. Rod Cunich explains the consequences of relationship changes on your Will.

neW relationshiP, neW Will?

An ignorance and/or failure to make changes to your Will when there’s a change to your relationship status can lead to misery – yours

whilst you’re alive, and loved ones when you die. So here are a few things you need to consider for the ‘happiness’ of all concerned.

New marriage If you remarry, the marriage will invalidate your existing Will. Depending on the state or territory in which you live, it's likely that your new partner will inherit everything under the intestacy laws. In other states, however, children receive a significant portion and even previous partners may also be entitled to a share. So, it’s better to have a current Will to avoid uncertainty or, worse, your estate going to the wrong beneficiaries.

SeparationIf you separate from your spouse, the separation has no impact on your existing Will. If you die whilst separated and not yet divorced, your assets will be distributed according to your Will. In most cases, your ex-partner will be the beneficiary. This is not an ideal outcome. The solution is simple: Prepare a new Will when you’re preparing to separate. Separation rarely happens spontaneously, so you have more time than you realise. If you don’t have the sufficient headspace to get it done at the same time, then prepare a new Will immediately after you separate.

New relationship Second marriages and de facto relationships are now part of the norm. Why? There are two main reasons.

Firstly, 43 per cent of first marriages end in divorce, so new relationships are common, as are the number of blended families – that is, one or both parties have children from an earlier relationship.

YourLifeChoices Retirement Update March 2015 23

MORERod Cunich is National Practice Group Leader for Wealth Protection, Succession and Estate Administration at Slater and Gordon lawyers. For more information visit Slater and Gordon Lawyers.

This article is of a general nature only and not intended to be legal advice or relied upon. You should seek your own personal legal advice from an accredited professional.

leGal uPdate

And, secondly, better healthcare sees us living to a grand old age. And many a widow/er will set-up house with a new found love after their partner has passed away. Seventy- and 80-year-olds are now entering relationships that can last five or 10 years, or more. This is considered a long-term relationship in Australia.

Whether the new relationship is a de facto relationship or marriage, the Family Law in Australia creates rights in your new partner's assets as time passes. The terms of your pre-relationship Will do not protect your beneficiaries, as the rights of your new partner will, over time, take priority over their rights.

Family agreement With every new relationship you need to revisit your Will to protect the interests of other beneficiaries, such as your children. However, a word of warning: Merely doing a new Will may be insufficient. You may need to enter a Family Law Agreement with your new partner to control what you wish to leave each other (if anything) and protect the inheritance of other beneficiaries. This applies equally to both parties.

An agreement will provide certainty about your intentions but, unfortunately, it doesn't provide absolute certainty for your loved ones. This is because the courts don't like these agreements, even though they’re sanctioned by legislation. So unless your agreement is prepared in strict compliance with the law and is updated regularly to take into account changes in your circumstances, a court may set your agreement aside and impose its own asset distribution regime.

Nevertheless, it’s better to have an agreement than not. The key is to do it right and keep it current. As with your Will,

an agreement should be reviewed whenever there is a change – i.e. birth, death, marriage, separation, acquisition or disposal of an asset, receipt of an inheritance, and/or a financial loss or gain.

Disputes Slater and Gordon lawyers recently conducted a national survey and found that 34 per cent of Australians have experienced a dispute or family disharmony over a deceased estate. That’s many of us!

Your life partner and children have a statutory right to challenge your Will. While others you have supported financially or even emotionally can also challenge your Will if they can prove their dependence on you.

Will a claimant be successful? The court's role is to determine whether the deceased made ‘adequate provision’ for the claimant in their Will. The court examines the current needs of the claimant, the circumstances of your other beneficiaries and the nature and size of your estate. The history of past dealings and conduct is relevant but not determinative. It’s often the ‘black sheep’ in the family who you’ve had to bail out of financial problems who succeeds in proving a ‘need’ for greater provision from the deceased estate.

So how can you handle all of these issues?1. Be aware of the issues – and you’re already

halfway there.2. Consult an estate-planning expert. As the saying

goes: ‘Spend a penny today to save a pound tomorrow.’

3. Repeat the above two steps whenever you have a change in your life, or every five years – whichever comes first.

The terms of your pre-existing Will do not protect

your beneficiaries …

YourLifeChoices Retirement Update March 201524

eat Well FoR less

ian’s leMon honeY chicken

Chicken, lemon and honey are the perfect combination, and they combine deliciously in Ian Parmenter’s recipe, with a taste of the Orient.

Serves: FourTime: One hour and 15 minutes,

plus one to 24 hours to marinate

Ingredients• 800g lean chicken thigh pieces,

skinless• 1 tablespoon kecap manis

(sweet Indonesian soy sauce)• 2 teaspoons sesame oil• juice and zest of 2 small or 1 large

lemon• 2 tablespoons honey• 2 teaspoons finely chopped ginger• 2 teaspoons finely chopped garlic• 1 tablespoon sweet chilli sauce• 250ml good-quality chicken stock• 1 tablespoon oil (sunflower, peanut,

canola)

Garnish (optional)• 1 stalk spring onion, finely chopped• 3 lemon slices

MethodIn a large bowl, combine chicken pieces with the kecap manis and sesame oil. Refrigerate and leave to marinate for a minimum of one hour, or up to one

day at a maximum.

While the chicken is marinating, in a large bowl make a sauce by combining the lemon juice

and zest, honey, ginger, garlic, sweet chilli sauce and stock. Mix well.

Drain the chicken, reserving the marinade. In a large fry pan on medium

heat, brown the chicken pieces in the oil. When they have browned, remove the chicken pieces from the pan and set aside.

Into the same fry pan, pour in the lemon and honey mixture and the reserved marinade, cook until the mixture is reduced to a rich, syrupy consistency. Taste, then adjust for flavour – if too sweet, add more lemon juice, if too tart, add more honey.

Return chicken pieces to the pan with the sauce, cover and simmer on low heat for about 40 minutes.

When the chicken is cooked, you can remove the pieces and reduce the sauce to make it thicker if you wish. If using, top chicken with the garnish. Serve with plain rice.

MOREDiscover more of Ian’s recipes on his Consuming Passions YouTube channel.

YourLifeChoices Retirement Update March 2015 25

deals and discounts

To give your purses and wallets a break, here are some fantastic deals and discounts available in your own home state.

saving MoneY in March

Australian Capital TerritoryNeed some help clearing blocked gutters? Call AllClear Leafguard and Gutter and receive 15 per cent off. www.allclearleafguard.com.au

New South WalesInterested in Australian history? Join the Royal Australian Historical Society and receive 15 per cent off your membership and subscription. www.rahs.org.au

Northern TerritoryContact 1300SMILES and receive 10 per cent off the gap amount for general dental services. www.1300smiles.com.au

QueenslandTreat yourself to a stay at Peppers in Surfers Paradise and receive 10 per cent off your accommodation. www.peppers.com.au

South AustraliaPlanning a trip? Don’t forget to get travel insurance. Contact helloworld and receive 10 per cent off. www.helloworld.com.au

TasmaniaPassing through Bicheno? Drop into Beachfront Bicheno and receive 10 per cent off your meal. www.beachfrontbicheno.com.au

VictoriaWant to become more tech savvy? Receive one-on-one training from iShowU technology instructors and receive 10 per cent off. www.ishowu.com.au

Western AustraliaReceive 10 per cent off normal tax preparation from H&R Block, just in time for this year’s tax return. www.hrblock.com.au

YourLifeChoices Retirement Update March 201526

RemaininG Relevant

careers for the fUtUreNeed to top-up your retirement funds? Leon Della Bosca offers four realistic and

in-demand job ideas to help you cover your living expenses.

You’re approaching retirement and wondering whether your savings are sufficient – only to

subsequently find that you need to subsidise your funds. So what sort of work can you do at this stage of your life? You’re probably not the only one pondering this question.

Here we consider how you can find real job opportunities – now and in the future.

Retail assistantsAccording to Department of Employment estimates, around 45,000 new jobs will be available for retail assistants over the next five years – making the retail sector the second-highest job growth area in Australia. Clothing and household goods retailers will be the employers most likely seeking staff.

Handyman/tradespeopleIf you’re handy with tools, then you’ll be glad to know that construction industry jobs are expected to increase by around eight per cent by 2018. That roughly translates to 83,500 jobs for tradesmen, builders and construction workers. And with insufficient tradesmen to meet this growing demand, why not try your hand as a freelance handyman? Businesses such as ‘Hire-a-Hubby’ and ‘Jim’s’ are always looking for potential franchisees. But it would be more beneficial for your hip pocket to cut out the middleman and market yourself as a help-around-the-house handyman in your neighbourhood.

HealthcareAlready the nation’s biggest employer, the healthcare industry will account for 25 per cent of new jobs created between now and 2017. Aged care facility managers, clinical care managers, registered nurses and physiotherapists will be most in demand, but if you don’t have those skills, or are unable to undertake the necessary training, then there’ll be plenty of options for less-skilled assistance work in hospitals, healthcare facilities and special assistance centres. Healthcare also has the advantage of being

a major job provider in regional and country areas, as well as city and suburban locations.

BookkeepersIt’s highly likely that you’ll be counting your own coins in retirement, but using that special skill may also net you a well-paid job in the future. So if you have a good head for figures, a basic bookkeeping-software training course – such as MYOB and Xero – can set you up as an in-demand freelance or part-time bookkeeper.

MOREFor more information on how you can remain relevant throughout retirement, consider visiting the following websites:www.seeklearning.com.auwww.joboutlook.gov.auDepartment of Education and Training Job Guidewww.AARP.org/work

YourLifeChoices Retirement Update March 2015 27

RelationshiPs

In a new relationship and thinking of living together? Should you? Jo Lamble explains that the ‘traditional’ route is not the only way.

shoUlD YoU live together?

MOREFor more information on relationships, visit JoLamble.comYou may also wish to visit Relationships Australia

No matter how old you are, the question of where your relationship is going may come up at some point. No one wants to waste

time if the relationship isn’t progressing. But when you meet someone later in life, it’s not as easy to know what that progression looks like.

While there’s no pressure from a ticking biological clock, there are often adult children to take into account. Plus, we are more set in our ways and not as flexible when it comes to permanently accommodating others in our homes. More significantly, there are usually money matters to consider. Without a binding financial agreement, financial security could be at risk if the relationship breaks down after having lived together for 12 months or more. So it’s worth thinking carefully about whether or not to share a home.

For some people, the relationship doesn’t feel right unless they’re sharing the same bed most nights or, at least, living under the same roof as their partner. But there is a growing group of couples who are together but live apart. They even have their own acronym – LAT (Living Apart Together). That is, the couple are in a committed relationship and may spend many nights together, but maintain their independence by keeping their own residences.

Other couples get to a point where they know they don’t want to see other people, but they live quite separate lives, only seeing each other once or twice a week. They enjoy having their own space and spending time with their own friends and family and only occasionally include their partner in these get-togethers.

As long as you’re both on the same page, it’s up to the two of you to discover what works best for you. Problems arise when one person wants to live together or get married and the other wants a higher level of independence. When you want different levels of commitment or different amounts of time together, it can really damage the relationship. Insecurity, jealousy and resentment can quickly build up and eat away at the positive feelings you have for one another.

It’s very important that you are both honest. There’s no point in agreeing to live apart or move in together if that’s not what you want. At any age, hiding your true thoughts and feelings will cause problems down the track. It may not sound romantic, but if you do agree to cohabit, seek legal advice so that your finances are not at risk.

YourLifeChoices Retirement Update March 201528

lessons leaRned

brenDa PalMerAt age 83, Brenda Palmer is an inspiration. Her story reveals how fulfilling

life can be when you stay connected. It’s all about attitude.

When my best girlfriend suggested I go for a job at Coles, I didn’t know that 45 years later I’d still be there. What keeps

me working is the strong sense of still being able to contribute.

Born in 1932, I am the youngest of five sisters. My father was a builder on cattle stations and my mother kept the family together. We lived in a house my father had built in Deniliquin. When I was six, we moved to Melbourne to live above a shop on Glenhuntly Road in Elsternwick.

I began working in a factory line at the age of 14 in the rag trade. We assembled frocks, suits and coats in an Adelin factory in Flinders Lane. I got married when I was 20 and stopped working. I had three lovely children, but it wasn’t until my youngest son was seven that I returned to work.

When the Coles on Glenferrie Road in Malvern opened its doors in July 1967, I started working in the deli. I’ve been at the same store ever since.

I soon moved on to stacking products and service assistance. At that time, there was just one

cashier at the register. The rest of us had to stack our section – condiments, cereals and the like. In those days we did our own ordering. There was a three-bell system and if you heard the bell ring, you stopped stacking and went to serve the waiting customer.

You learn a lot about how to handle people in customer service. Some people can be difficult, wanting their eggs packed a certain way, but 99.9 per cent of people are fabulous. Everybody is an individual.

The technology at the supermarket seems to evolve but I’ve never had a problem with it. We used to

type product numbers by hand but when barcodes came, the process

became a cinch. Then scanning technology altered the whole system. When EFTPOS arrived, we needed special training. It seemed difficult at the start, but we adjusted. The thing that annoys me is

that I won’t be around to see new technology come through.

I love the challenge.

YourLifeChoices Retirement Update March 2015 29

lessons leaRned

My daughter Carolyn used to say she didn’t want a computer. I told her she’d be crazy not to get one. For my next birthday I received a desktop computer. I got straight on it and sent her an email. Then I sent her a text message saying, “Carolyn, I’ve sent you an email and if you want to know what I said, you’ll have to open it.”

People said Carolyn and I were more like best friends than mother and daughter. We used to sit at our homes and text each other while watching TV. It felt like we were in the same room. When she passed away, it changed my life. We were very close. My daughter was so proud of me. Work helped me so much during that time.

Some people are 67 going on 90. They get old

too fast.

Working also gives me a chance to represent a whole group of people who are my age. I had four beautiful friends who have all passed away, so I’m the only one I know of my age who is still working. Some people are 67 going on 90. They get old too fast. Many customers tell me I’m an inspiration.

Whatever gratitude the customers might feel, I get it back a hundredfold. After Carolyn passed away, there were two young brothers who bought me a bunch of pink roses for Mothers Day. I put through their purchases and then they gave me the roses.

I am treated with great respect by colleagues and customers. You couldn’t pick a better company to work for than Coles. The company held a 45-year celebration for me at the Hilton. It was humbling because managers from all over Australia were there. I was presented with a memory book, vouchers, flowers and, later on, an iPad engraved with a message of appreciation from everybody at Coles.

I believe a lot of people retire too early. It’s fine if you have plenty of money, but people often say: “I retired and now I wish I hadn’t.” I think 70 is a fair age to receive a pension but it should be optional. If you have a doctor’s certificate or are unable to keep working, you should be able to receive your pension earlier.

I wouldn’t say that I am super fit but I have no problems maintaining my energy. I’m not sure from where I get my energy, but I’m the youngest of my siblings and I think my dad saved the best until last.

YourLifeChoices Retirement Update March 201530

diaRy dates

Don’t forget these key dates over the next three months. Pencil in our picks, with a few quirky ones just for fun!

aPril – JUne 2015

April 1 April April Fool’s Day: Watch out for any cheeky

pranksters who may try to fool you today!

3 April Good Friday: Today commemorates the crucifixion of Jesus Christ. Depending on your faith, it’s traditionally the day you eat hot cross buns and/or fish.

5 April Easter Sunday: Did you plan your big Easter egg hunt? Try not to indulge in too much chocolate.

7 April World Health Day: This year’s theme for World Health Day is food safety. Make sure you’re aware of the five keys to safer foods.

25 April ANZAC Day: Lest we forget. The anniversary of the first major military action fought by Australian and New Zealand forces during WWI.

May 10 May Mother’s Day: Show your mother or

grandmother just how much they mean to you.

15 May International Family Day: On this day, celebrate and reflect on the importance of your family.

19 May Malcolm X Day: Malcolm X was a civil rights leader in America. Today is his birthday.

26 May National Sorry Day: Today, we say sorry and remember the thousands of indigenous Australians forcibly removed due to past government policies. Also known as the Stolen Generation.

31 May World No Tobacco Day: If you still smoke, why not consider quitting today?

June 3 June Mabo Day: Today marks the day when,

in 1992, the High Court overturned the notion that Australia was terra nullius (land belonging to no one) before white settlement.

5 June World Environment Day: Take some time to appreciate our environment while taking steps to protect and maintain it.

12 June Red Rose Day: Buy a red rose today and honour the flower that is a symbol of love and romance.

18 June International Picnic Day: Why not pack a picnic basket and grab a friend to celebrate International Picnic Day?

25 June World Elder Abuse Awareness Day: A very important day to check-in with and support older people who are (or may be) experiencing abuse from family or friends.