 | Welcome to this week's edition of Smart Investing.
Longevity risk – the risk of outliving one's accumulated savings – is a major concern for many retirees. However, on a real level, many retirees are dying with a significant proportion of their savings balance still unspent. Why? Because the broad fear of spending too much in retirement means many retirees are living more frugally than they need to.
In our lead article this week we examine the issues around longevity risk and retirement drawdowns, using analysis from the just-released Intergenerational Report 2023, ASFA's July retirement standard findings, our own recent How Australia Retires study, and this year's thematic review of the retirement income covenant by APRA and ASIC.
Our second article this week dispels some of the myths around how exchange traded funds (ETFs) are valued. Did you know, for example, that an ETF's market price can be different from its net asset value (NAV), which measures the value of its underlying securities?
We explain why this occurs as a part of normal market trading, what's most important for investors to focus on, and the differences in ETF premiums and discounts across asset classes.
Lastly, in a video interview with ausbiz, Duncan Burns, Vanguard's Chief Investment Officer, Asia Pacific, explains the reasons behind the phenomenal growth of index investing in Australia and why millions of Australian investors are incorporating index-tracking funds into their investment portfolio.
| | | | | Why many retirees are underspending | | After accumulating superannuation savings over multiple decades, many retirees are fearful of spending too much. | | Read article | | | | | | | How exchange traded funds are valued | | We dispel some myths about ETF premiums and discounts, explain why they can occur, and suggest how investors can make informed decisions. | | Read article | | | | | | | Video: Investing in index funds a long-term winner | | Why the case for investing in index funds remains as compelling for investors as ever. | | Read article | | | | | | | 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 | | | | 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.
Vanguard Investments Australia Ltd (ABN 72 072 881 086 / AFS Licence 227263) is the product issuer. We have not taken yours or your clients‘ circumstances into account when preparing this email so it may not be applicable to the particular situation you are considering. You should consider yours and your clients‘ circumstances, and our Product Disclosure Statement (PDS) before making any investment decision or recommendation. Distributors of our products must consider our Target Market Determinations ("TMDs") which describe the investors for whom the product would likely be appropriate and consistent with their objectives, financial situation and needs. You can access our PDSs and TMDs at www.vanguard.com.au or by calling 1300 655 101. Past performance is not an indication of future performance. Our electronic publications are prepared in good faith and we accept no liability for any errors or omissions. Not all articles are prepared by Vanguard so they may not represent our views and opinions. Vanguard Investments Australia Limited is in no way responsible for the content or loss resulting from use of any website owned by a third party that may be linked to this email via a hyperlink.
© 2023 Vanguard Investments Australia Ltd. All rights reserved.
Use of cookies
If you click through to the vanguard.com.au website from this email, a cookie may be placed on your computer to enable Vanguard or our third party service providers to collect information about your use of the vanguard.com.au website to support website performance, enhance site navigation, improve our web design and functionality and tailor our communications to you regarding our products and services. The information collected by Vanguard or our service providers does not include personal information that could be used to identify you such as your name, address, telephone number, email address, or account information. Unless you have adjusted your browser settings so that it will refuse cookies, our system may set cookies when you visit the site. You may choose to remove or disable cookies via your browser. Google Analytics uses data when you access the Vanguard website. For more information, see "HOW GOOGLE USES INFORMATION FROM SITES OR APPS THAT USE OUR SERVICES," located at https://policies.google.com/technologies/partner-sites. You can opt out of being tracked by Google Analytics at the following location: https://tools.google.com/dlpage/gaoptout.
To learn more about how Vanguard uses cookies, please visit the Vanguard Cookie Policy.
By using our website, you consent to the use of cookies as described above.
Terms and conditions of use | Disclaimers | Privacy policy | Cookie policy | | |
