Boomer retirement funding gap - delay in the hope for returning asset value

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Boomer retirement funding gap – delay in the hope for returning asset values


Boomer retirement funding gap – delay in the hope for returning asset values

By , March 8, 2013

The recent survey by industry super fund REST of 1200 people aged over 50, confirms that those not all that far off retirement are largely unprepared.

Just 14 per cent feel ”financially prepared” for retirement;

a further 51 per cent say they are ”somewhat” prepared financially.

Thirty-five per cent say they are ”completely unprepared”.

This should be a substantial cause for concern given that, unlike 100 years ago when people retired at 65 they could expect to live just another 2-3 years, if you turn 50 in 2013 your can expect to live until age 82 !

Boomers ( born between 1946 and 1965 ) have seen their retirement savings ( super, investment property, share portfolio and even home ) values decrease as a result of the GFC and even though some of those values are now returning, research tells us that many ( nearly 50 % ) have delayed retirement sibe 2008.

Business owners are a subset of this group and the data is no different – many businesses which were “expected” to be sold in 2008-2012 have been delayed and owners are “waiting expectantly” for a return of better asset values – importantly business valuations especially by potential buyers are now a more complicated exercise and businesses need to be well prepared to extract maximum value.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.