Shane: Hello. My name is Shane Hancock, and I am the Head of Member Products, Guidance and Advice at AustralianSuper. And welcome to our podcast, The moments that count. Before we start, it's important to note that the information discussed in this podcast is general only and doesn't take into account your needs or personal objectives.

You should assess your own financial situation and needs. Today, this podcast is being recorded at our head office on the land of the Wurundjeri people of the Kulin Nation. I and AustralianSuper acknowledges the traditional custodians of country throughout Australia. We pay our respects to elders past and present, and extend that respect to all Aboriginal and Torres Strait Islander people.

Quite often, AustralianSuper members will ask questions of the found through various channels, and mostly those questions are relevant for many members.

So we thought it would be great if we could share some of those questions and answers through this podcast. To help answer these questions, I will invite a guest expert to join me on the podcast. And today I'm very happy to be joined by Dale Barratt, Financial Planner, at AustralianSuper.

Dale provides advice under the license of Industry Fund Services and has been a financial planner for over 20 years. Welcome, Dale.

Dale: Pleasure. Thank you.

Shane: No problem. So we have received the following question: "My husband is 63 and I am 61, and we retired three years ago, we are unsure if what we have set up is right, should we change what we have set up or leave it or see a financial planner which, as a self-funded retiree, is expensive... I would love an episode that tells us what to do after we've retired. Thank you."

Really great question, Dale, and there's a number of components to that question, so I thought we'd break it down a little bit. So after someone's got advice or set up a retirement plan, should they keep getting that advice after they've retired?

Dale: Yeah, again, it's a really good question, Shane, and thanks for the member for actually asking it. Look, I'd say it's not so much have to, but more the value of, just because a person is retired, change is constant. People's circumstances change. Financial markets are constantly changing. Governments make changes to law.

Social security qualification criteria can change. Just keeping on top of all this is very difficult. So to ensure retirees are making sound decisions in an ever changing environment, reviewing one strategy with a skilled and experienced financial adviser is often the most effective way of going about this.

Shane: And there's probably too, Dale, what we're seeing more and more is people living longer, which is fantastic, and so therefore people's retirement is actually longer. So you've touched on changes even to their own needs during that period of time?

We see, quite often we hear from members who have got a pathway in the first part of retirement and then, whether it be through health or financial situations, have a change in their circumstance. So you've talked about a lot of change in there, but that longevity of retirement is really important. So how often should someone seek advice or help post retirement?

Dale: Yeah, good. That's a good question and frankly, it's one that we get asked quite a lot. And look, I think it just really comes back to what's the complexity of the person's overall position.

But nonetheless, I think looking at a stereotype, typical retiree and sort of coming from my sort of two decades of experience of dealing with retirees, those who review their circumstances and position and strategy on a regular basis with their adviser every sort of 18 months or so and importantly, keep in touch with their adviser in between those meetings, if you like, are arguably in a better position, both financially and indeed, psychologically, than those who do not.

Shane: You made a really valid point there around the psychological part of it. And so, from your experience, whilst people might be checking in 12 or 18 months, there's not always going to be a change that is required to the plan. But there may actually be just a level of comfort that they can get from their planner or their super fund that says that you're still on the right track for the next part. Has that been your experience?

Dale: I think that's very accurate, just working with your adviser and you get to know people on a one-to-one basis the longer you work together, I guess the trust grows. I guess from a member's perspective, I suppose if they've been talking with their adviser on a regular basis.

And that's something that's very valuable for retirees to know that they're continually on track and making good decisions relative to that particular moment in time in their lives.

Shane: And this wasn't part of the question, but something that prompted me to follow up with this in your answer is that quite often we see people making retirement decisions as a couple and sometimes one of the couple may pass on.

And so having a financial planner who is aware of your financial situation, I'm assuming would help with that financial transition anyway. Have you seen that through your experience?

Dale: Yeah, in fact, I'd even expand on that. I mean, absolutely right. Definitely the quantitative side or the numbers or the financial side is really important and that's what advisers are there to help clients and members with. But when there's a trigger event like that in someone's life, obviously that's difficult and stressful for the person.

But knowing that they can reach out to a trusted person and help them through that stage not just the financial decisions, but I'd argue the emotional support, that's something really important and valuable, that long-term financial advice clients, I believe, gain from their adviser, not just the how do I invest my money.

Shane: Great. So going back to the question asked by the member, there was an element of the question that talked about the cost of advice and the view that in some cases it's expensive. What would you say to someone who thinks advice is too expensive for them to get?

Dale: I think to a certain extent, the cost of something is in the eye of the beholder. We either see something as expensive or we see something as valuating.

And I guess that comes down to the individual. But going back to what I said earlier, change is constant. And just because we make a strategic decision or a piece of advice at a given moment in time, that doesn't mean it continues into perpetuity.

It's wise to kind of check in with your adviser and check that you're making the right decisions every now and then. As I've just talked about, I mean, retirement all being equal, if I retire at 65, I could be retired for 30 years, more possibly if I get to centurion.

Shane: Getting back to that cost viewpoint when you're talking to a client and you end up talking about the cost of the advice versus the value of the advice that they're receiving, how do you articulate that in a conversation?

Dale: Yeah, well, obviously the cost is a quantitative figure. Everyone can see what the cost is because an adviser obviously will explain to someone what the cost is to do a piece of work. Again, the value is derived not just in the economic trade off or the sensibility of taking a given path, but knowing emotionally that you're making the right decision and you're working with a trusted person that you've got to know over the journey.

I think that's what most retirees would say about the value they have with their adviser over the retirement journey, not just that trigger point of retirement.

Shane: So there was one element of the question that we received which talked about the member being self-funded and also which could mean that they're not eligible for the Government Age Pension through their assets or income, but also looking at their age as well.

These two particular members being 63 and 61, there's obviously an accessibility issue there. Should someone seek additional advice or seek help and advice once they reach the Government Age Pension age or if their circumstances were to change to ensure that they are getting access to all the benefits there, could be?

Dale: Yeah, I think generally speaking, that's an accurate position to take. I think if a person is likely to be eligible for social security benefits upon reaching Age Pension age, revisiting one's position at that time is generally a sensible step.

I think, as I mentioned earlier on, change is constant and a person's ability or not to qualify for benefits a number of years out from Age Pension qualifying age could actually be different when they reach that point, either in a positive way or perhaps not.

But that aside, sometimes it's not just the age pension itself that's relevant in terms of receiving benefits. So just looking back on some of my experience and helping people over the journey, some people have unfortunately found that they haven't been able to qualify for Age Pension at qualifying age, so that they think that they're actually not eligible for anything at all, when in fact, they would have been eligible for things like the Commonwealth Seniors Healthcare Card, which in itself can be quite a valuable, if you like, concession.

So, looking short, reviewing one's position at pension age with a qualified professional is frankly a wise step for most people I'd argue.

Shane: And even post that because people's situation can change, particularly as it relates to their assets or their income. If people are depleting the self-funding nature of their assets or their income, that can make their eligibility, make them eligible for benefits that they weren't aware of.

Dale: Yeah, I think that's a great point. I mean, just because a person doesn't qualify for benefits at that date in time for qualifying age, that doesn't mean that they wouldn't qualify a year, two, three, five years later. Or indeed one might even take some steps to bring that forward if the situation is right.

So again, if someone's really seeking support via Age Pension or otherwise, it's complex system and getting some guidance and support and good advice from a professional adviser is really important to make sure that you get the benefits that you're entitled to.

Shane: And do you quite often see members that come to you that didn't realize they could access a government benefit or if they restructured their investments a little bit differently, that would gain them some access, even being small access?

Dale: Absolutely. Again, it's a really good question. All I'd say there is people respectfully don't know what they don't know. That's why they're coming to see us. And our job is to know how the system works and what steps one can take to qualify for benefits and thus giving people quality advice based on their experience and knowledge and sharing that with members to enable them to get the best outcome.

I found many time that members have been very pleasantly surprised that they've obtained benefits when in their own mind they'd come to that meeting with the presumption that they would never obtain anything. So that can be a very, very positive experience, quite naturally.

Shane: Well, Dale, I think you've answered the member's question. Hopefully they're listening and able to hear those answers. Thanks for joining us.

Dale: Pleasure. Thank you.

Shane: Thank you for joining us today. If you're an AustralianSuper member and you would like to join us to share your story or have a question or topic you would like us to cover, then click the link in our show notes to get in touch. If you've enjoyed this podcast, subscribe and share with your friends and family. See you next time.