New CPI weightings no closer to tracking retirees’ expenditure

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Australia’s newly revamped consumer price index (CPI) may provide a more accurate picture of what the average household spends its money on, but it’s no closer to solving the problems faced by retirees. The Australian Bureau of Statistics (ABS), which recently reweighted the CPI’s basket of goods for the first time in more than six […]

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Surprising new research reveals the majority of Australian retirees spend less than the Government Age Pension

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More than half of Australian retirees are spending less than the Age Pension each year, raising significant questions about current retirement policy and super fund strategies, according to new research. The unexpected finding, which is also affected by age and location, was revealed in Milliman’s latest Retirement Expectations and Spending Profiles (ESP) analysis of 300,000-plus […]

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Milliman and Spark Green join forces to create digital engagement tools

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Global actuarial firm Milliman has entered an agreement with Melbourne-based digital agency Spark Green to create a suite of white label calculators and gadgets for the financial services industry. The two companies will work together to create end-to-end solutions that combine Milliman’s proprietary actuarial and risk platform and Spark Green’s ability to communicate complex financial […]

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Australian super funds bring derivatives into the mainstream

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Australian super funds are embracing derivatives to perform a wide range of investment functions, according to a new survey by risk management and retirement specialist firm, Milliman. The survey revealed that roughly four in five funds (79%) using derivatives ‘always’ or ‘often’ used derivatives for risk management and hedging while other popular uses included portfolio […]

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Probability is power but numbers alone can’t change behaviour

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Uncertainty is a fundamental part of investing. The outcome of fluctuations in economies, markets, asset classes, regulations and investor behaviour is never more than a probability. Monte Carlo simulation can empower investors to understand such fluctuations like never before.  However probabilistic information can also make many prospective retirees uncomfortable. However high a model might suggest, […]

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Super funds: Learn more about members or risk regulatory intervention

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The prudential regulator has warned super fund trustees to provide concrete evidence that they understand what their members want before making decisions on their behalf. The call was made by Australian Prudential Regulation Authority (APRA) deputy chair Helen Rowell at a Financial Services Council Leaders Summit panel. While Rowell acknowledged that super fund directors believed […]

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Super funds: learn more about members or risk regulatory intervention

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The prudential regulator has warned super fund trustees to provide concrete evidence that they understand what their members want before making decisions on their behalf. The call was made by Australian Prudential Regulation Authority (APRA) deputy chair Helen Rowell at a Financial Services Council Leaders Summit panel. While Rowell acknowledged that super fund directors believed their decisions […]

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Retirement guarantees – are they worth it?

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Freed from the constraints of compulsory annuity purchase, customers in the UK retirement market have entered a brave new world of choosing for themselves which retirement product is best for them. However, this is no easy task. The UK retirement market is now home to a diverse and growing range of products. These products provide […]

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Why the industry’s “comfortable retirement” measures are wrong

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The superannuation industry has placed an extraordinary emphasis on helping members achieve a “comfortable” retirement given it has so little information about what it actually means. What we do know is largely composed of averages and assumptions which are ranked against the ASFA Retirement Standard’s portrait of the average Australian. The standard represented an important […]

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Why the automated advice industry can’t leave goals behind

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The rise of automated advice and new technology is changing the face of financial planning. It is offering low-cost advice to investors who previously couldn’t afford it and bolstering the advice of traditional planners with powerful new analytical tools. However, there’s a problem. Many automated advice providers are simply replicating the increasingly outdated traditional advice […]

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