 | Welcome to this week's edition of Smart Investing.
The number of Australians of Age Pension age is set to roughly double to nine million by 2062-63, according to Treasury estimates contained in the just-released 2023 Intergenerational Report. But the Federal Government also expects there will be less reliance on the Age Pension as the primary source of retirement income, largely thanks to the success of the superannuation system.
At the same time, the Government believes the gender gap in superannuation balances will persist, reflecting the lower lifetime earnings of women. This accords with new analysis from Vanguard's How Australia Retires study, which shows many women continue to face substantial gender-based differences.
Separately, in our second article this week, we discuss some of the issues many Australians face when they do retire, especially in relation to the complexities of the social security and taxation systems. We find that there's a clear case for ensuring retirees have greater access to affordable financial advice.
Lastly, we have a short video for you to watch on the 2023 Vanguard Index Chart. It covers the period from 1 July 1993 to 30 June 2023 and shows how a starting balance of $10,000 would have changed in value over time after being invested into a range of different asset classes.
Our animated chart demonstrates the importance of investing for the long term, spreading your risk and ignoring short-term volatility, and the enormous power of compounding returns.
| | | | | Super gender divide to remain a challenge | | The Federal Government has flagged it expects the gender gap in superannuation balances to persist well into the future. | | Read article | | | | | | | Closing the retirement advice gap | | The number of retired Australians is set to surge, and so will demand for retirement advice. | | Read article | | | | | | | Watch the 2023 Vanguard Index Chart video | | Watch our video on the 2023 Vanguard Index Chart to see how much money investors could have made over time just by sticking to a long-term investing strategy. | | Read article | | | | | | | Four share market volatility indicators to watch | | While there's no share market crystal ball, these real-time volatility indexes provide a gauge on investor sentiment about the future. | | Read article | | | | | | | Investors continue to back bond ETFs | | Australia's ETFs sector edged closer to $150 billion in assets under management by the end of July. | | Read article | | | | Vanguard and its employees wish to acknowledge the Traditional Custodians of Country throughout Australia where we operate our business. We recognise their connection to the land, water and culture and wish to pay our respects to their Elders past, present and emerging.
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