• I’m 49, my husband is 63 – we have combined super of $80,000. Our house is worth $1.1 million and we owe $450,000 on it. I’m extremely worried about our future – please help.

You are not alone, many people worry about their financial future. Taking some action and having a plan can start to reduce the stress this can cause.

From the look of things, you could greatly benefit from some financial advice as a couple.

As an important first step, the adviser should be able to help you work out your goals and objectives and what you want to prioritise.

A good financial adviser will also act as a coach and help you stay motivated and on track.

Items I would be looking at include:

1. How long are you both prepared to work for (even if it is part-time or casual)?
2. Are you currently living beyond your means? This may require a tough conversation between you and your husband and even tougher spending decisions. (Perhaps a detailed budget may be in order)
3. Have you any capacity to save additional funds to super before retirement?
4. After retirement, what income do you need to live on? You can compare this figure to the age pension to see how much additional income you need to generate.
5. Are you willing to downsize your home in order to pay out debt and purchase a cheaper home?
6. Do you have any other investments or assets that can be used to provide an income in retirement?

The above points will bring things to a head, and while initially it may be uncomfortable, having a plan and taking some action will not only lead to better financial outcomes but it will ease your anxiety around your finances.

The government’s Moneysmart website has some good tips and information when considering obtaining financial advice.

• Do I stay on disability or go on to an age pension?

If you are in receipt of a disability pension, then reach age pension age, you do have the option of moving to the age pension.

Centrelink will normally instigate this by sending you an invitation to transfer to age pension, just before you reach age pension age.

The first thing to note is that they are very similar. Same rate of payment and same income and assets test is applied.

The age pension is taxable, and while the disability support is non-taxable, it changes to taxable once you reach age pension age, so no difference there either.

Generally, most people transfer to the age pension so they do not have to keep having further medical reviews to prove they are still eligible for a disability pension.

There are a few other advantages as well, such as you can travel outside of Australia for a longer period without it affecting your payment, and you can work more part-time hours without losing your benefits.

Conversely, if you are studying, or you are single and receiving rent assistance, or eligible for a mobility allowance you may be better off staying on the disability pension.

Centrelink can provide you with further details.

• I am a member of an industry super fund and am seeing a trend for such funds to seek to increase their holdings of Australian non-listed companies and that non-listed companies are growing significantly in value and number. Are there statistics to support this? Within industry super, how can exposure be increased, given that this is not a ‘sector’ option?  

You are correct in that industry funds have long been a big believer in unlisted assets due to their long-term performance, additional diversification and low correlation with listed assets.

While I don’t have access to all the stats, a recent Industry Super Australia report shows that industry funds are a big investor in this asset class, and yes, it’s growing. The graph below shows who is investing in unlisted assets.

Your industry fund should be able to provide you with more details on what they are doing in this space. For instance, Australia’s largest super fund AustralianSuper has a detailed report on these investments.

Craig Sankey is a licensed financial adviser and head of Technical Services & Advice Enablement at Industry Fund Services

Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.

Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.

The New Daily is owned by Industry Super Holdings