Superannuation Discussion + market volatility

[burmans]

Along with increasing rents as supply dries up…

Of course demand will reduce also as home buyers (ex renters) buy up all those established houses being sold by disillusioned investors.

The real issue is as always new homes but there is an (albeit somewhat mild) incentive now for investors to move from established to new properties.

 

[hydrabyss]

Of course demand will reduce also as home buyers (ex renters) buy up all those established houses being sold by disillusioned investors.

The real issue is as always new homes but there is an (albeit somewhat mild) incentive now for investors to move from established to new properties.

That assumes all home buyers are existing renters. In reality, many buyers are coming from shared housing or living with family before purchasing. Add to that net migration, with more people arriving than leaving, and rental demand isn't reduced on a one-for-one basis.

 

[hydrabyss]

Of course , that is because in retirement, the retirement super investment earnings are tax free.

I have a friend who suggested that whatever the super balance is at retirement, assume that it is 10-20% less calculate the retirement income from that reduced amount - again to mitigate against potential falls in asset values.

Lots of ways to dice it...

@andye s suggestion of using 4% withdrawals is another way but I think thats too conservative.
Maybe run out super at age 100?

I should add for context if it was not for a lung condition I had no intention of stopping work anytime soon. But still being a number of years from benefitting from super trying to work out which way to go is likely more personal than financial.

The idea of semi retiring is where I would like to be but then I forego accessing an income replacement pension that is not means tested but only allows income form investments. The possible CGT changes looming will make that slightly harder but like most things there will some way to work around it.