Financial planning is really about… giving your clients a vision

Retirement. Many clients dismiss this as being too far way to think about. But, given average life expectancy, an Australian who retires at the age of 60 needs to prepare themselves for another 25 years of life.

For clients for whom retirement is not currently in their thinking, the adviser needs to help that client envisage life after work. Simple calculators can be very useful here.

One such calculator is the super calculator available for free on the ASIC website. This simple tool allows clients to calculate the likely balance that they can look forward to when they retire. The tool also allows the user to add in specific aspects, such as voluntary concessional and non-concessional contributions, and the cost structure of their preferred fund can be input.

The calculator can also be used by self-employed people.

The calculator gives a nice visual demonstration of the likely growth in the client’s balance which can assist clients to see the growth in their balance as retirement approaches. The retirement age can also be adjusted, which can be especially useful if the client is being encouraged to delay retirement or is considering early retirement.


The Dover Group