FinancialContent is the trusted provider of stock market information to the media industry.
July 03, 2012 at 20:39 PM EDT
Online Retirement Calculators Mislead Australian Retirees
PR Log - Jul 03, 2012 - The review found that the assumptions online calculators make can dramatically overstate a consumers financial position at retirement, which leads to a false sense of financial security.
The lowest scoring retirement calculator tested simply projected consumers superannuation balance only and made no attempt to account for non-super assets or age pension entitlements.
One surprisingly poor result was the Government’s MoneySmart.com.au retirement planner, which also doesn’t consider non-superannuation assets, meaning consumers with shares, term deposits or investment properties would receive inaccurate results. The age pension calculation is also inaccurate because non-super income and assets are not counted toward the age pension entitlements test, potentially overstating pension entitlement at retirement.
The top scoring calculator in the test was AMP.com.au's "My Retirement Simulator" which scored 4 out of 5 stars. AMP’s calculator scored highly because it included superannuation and non-superannuation income and assets, allowed for lump sum purchases at retirement and included an accurate age pension calculator.
Another key feature was the ability to project ‘what if’ situations to see the impact adding making small changes to your retirement strategy.
The FPCA warns that if consumers want an accurate retirement projection, then they should consult a licensed financial planner who specialises in retirement planning. A qualified professional can accurately project your retirement position and then provide strategies to help you maximise your situation.
The FPCA can help consumers who would like an accurate retirement projection by offering a free initial consultation with a local FPCA accredited retirement planning specialist. Request a free appointment by visiting http://www.FindAFinancialPlanner.com.au
You can read the full retirement planning calculator review here: http://www.findafinancialplanner.com.au/retirement/retire...
Read Full Story - Online Retirement Calculators Mislead Australian Retirees | More news from this source
Press release distribution by PRLog
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here