FINANCE

Despite a common perception that laws are hard to move and rarely change, the legal landscape for retirees and older Australians is in a constant state of being updated and improved. DON MACPHERSON explains.

After many years of complaints about the state of the retirement industry the Queensland Government embarked on a complete revamp of the rules and forms in various stages during 2019, with ongoing changes filtering through progressively.

The aim is to ensure greater clarity and transparency for people entering into retirement village contracts.

Similarly, the rules and obligations for manufactured home parks – described, more as a marketing term, as over 50s resorts – were completely changed and updated as of September 2019.

The idea is that the “dog’s breakfast” of contracts that were historically presented were systematised and regulated to make sure people actually understood what they were signing up to.

The legal landscape for Wills is also changing, with recent cases granting probate to documents that don’t meet the strict requirements of the Succession Act.

Handwritten notes, notes scribbled on an old will, even a text message, have been endorsed by the court as a last will and testament. A warning though – while in some cases an informal document has been accepted by the court, the costs of achieving such an outcome, particularly when different beneficiaries have potentially different outcomes, could easily exceed $50,000 in legal costs.

This is all for the sake of avoiding the cost of a simple will.

Aged Care, which is a federal jurisdiction, is due for a significant shake-up arising out of the Royal Commission, with very substantial changes likely in the not too distant future.

Most recently, as of July 1, significant changes have occurred in relation to the tax treatment of granny flat agreements which are likely to make formal agreements more important than ever.

Perhaps we will soon see a flood of discrimination cases based on ageism, a growing issue for our society.

SUPER REFORM BENEFITS WOMEN

SUPER Consumers Australia has welcomed a new law that ensures visibility of super balance information during family law settlements.

“For many Australians, super is the largest asset they own after their home,” Super Consumers Australia director Xavier O’Halloran said. “One person not disclosing their super in divorce proceedings can have disastrous financial consequences for the other.”

She said the change fixed a problem that overwhelmingly impacted women

SCAREMONGERING about how much superannuation is needed to retire, and out of date predictions about the best age to retire has left many thinking they have to work for longer than they actually do.

Cameron Dickson, managing director of family financial advisory company The Moreton Group, said seven in 10 people over 55 he spoke to could retire sooner than they think.

“Predictions about how much super you’ll need to retire will be completely irrelevant if they aren’t calculated for your situation and lifestyle,” he said. who typically have lower super balances due to inequalities in pay and unpaid caring roles.

“Right now, many women are retiring in poverty. Women over 55 are the fastest growing group experiencing homelessness in Australia. Removing the ability for former spouses to hide their super will help address part of this inequity,” Ms O’Halloran said. “We will continue to advocate for reforms that make the super system fairer and improve people’s financial well-being in retirement.”

He believes retirement calculators provide an overly simplified formula without a deep or informed analysis of present and future position based on financial, health and life scenarios.

“They perpetuate a myth that Australians can’t afford to retire and exacerbate anxiety in a huge proportion of working Australians looking to retire in the next five to 10 years,” he said.

The Moreton Group data shows that currently the top triggers for seeking financial planning advice are ill health or ill health of a friend or family member.

Don Macpherson is an expert in elder law at Brisbane Elder Law. Visit brisbaneelderlaw.com.au or call 1800 961 622.

Don Macpherson is an expert in elder law at Brisbane Elder Law. Visit brisbaneelderlaw.com.au or call 1800 961 622.

Aged Care Advocacy Giving older Queenslanders a voice and protecting their rights. support older people to access care services and resolve care related issues, through free independent and confidential advocacy services. Freecall 1800 818 338

Celebrating Queensland Seniors Month

RETIREMENT COULD BE CLOSER THAN YOU THINK

The Queensland Seniors Calendar 2022 is available now. The calendar is a reference guide to support and services available to older Queenslanders, and information to help you understand your rights. Visit www.adaaustralia.com.au to find out how to get your copy.