Maurice Patane

How to budget

Rod Cunich

Why you need to plan

Heidi Holmes

Do you have a social profile?

Louise Biti

Aged care tips

Maggie Beer

Dutch Ginger Cake

Retirement Update >ISSUE 3 SEPTEMBER 2014

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Published by: Indigo Arch Pty LtdPublisher: Kaye Fallick Editor: Debbie McTaggart Assistant Editor: SJ Fallick Copy Editor: Lucy Fallick Designer: Word-of-Mouth CreativePhone: 61 3 9885 4935 Email: admin@yourlifechoices.com.auWeb: www.yourlifechoices.com.au

All rights reserved, no parts of this book may be printed, reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, recording or otherwise, without the permission in writing from the publisher, with the exception of short extractions for review purposes.

IMPORTANT DISCLAIMERNo person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is distributed on the terms and understanding that (1) the publisher, authors, consultants and editors are not responsible for the results of any actions taken on the basis of information in this publication, nor for any omission from this publication; and (2) the publisher is not engaged in rendering legal, accounting, financial, professional or other advice or services. The publisher and the authors, consultants and editors expressly disclaim all and any liability and responsibility to any person, whether a subscriber or reader of this publication or not, in respect of anything, and of the consequences of anything done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this publication. Without limiting the generality of the above, no publisher, author, consultant or editor shall have any responsibility for any act of omission of any author, consultant or editor.Copyright Indigo Arch Pty Ltd 2014

FROM THE EDITOR

Welcome to YOURLifeChoices September RetiRement Update

T he way in which Australians approach retirement is changing. No longer do most of us work until we are 65 and then claim an Age Pension or dip into our savings as income. And while our choices may be greater, they are becoming very

complex. An informed approach to the way you will spend your retirement years and, of course, fund them, is the key to success.

Continuing to work later in life may be one of your options, but will you be able to carry on doing the same job? Heidi Holmes has the lowdown on your social profile and why it’s important to have one. If you believe that you can make your money go further by heading overseas, Stephen Wyatt, co-author of Sell Up, Pack Up & Take Off, offers advice on how to make your dream a reality.

As we publish this September Retirement Update, legislation is being debated in the Senate which could see not only a reduction in the Age Pension payment rate, but also fewer people being eligible due to frozen asset and income disqualification limits and changes to deeming rates. Age Discrimination Commissioner Susan Ryan considers the need to protect the pension, while Maurice Patane shows us how to create a budget and, more importantly, how to stick to it. And once that’s done, you can review the updated retirement expenses in the ASFA Quarterly Retirement Standard so you can compare how your own spending stacks up.

On the issue of finance, Jeff Bresnahan of SuperRatings offers some general advice concerning changes to how Centrelink assesses income from account-based income streams and the possible effects on your pension post 1 January 2015. And for those who think the furore over the reversal of Freedom of Financial Advice (FoFA) regulations has simply gone away, NICRI’s Craig Hall explains the way in which your retirement planning will be affected by the new rules.

Our regular updates on pensions, health and technology offer a snapshot of ‘the need to know’, while in legal news, Rod Cunich of Slater & Gordon explains why estate planning is essential for you and your family. And now that the aged care rules have changed, Louise Biti shares five tips to help reduce the financial stress.

Time to relax, so Maggie Beer’s recipe for Dutch Ginger Cake is a tasty alternative for dessert. But if you’re thinking of catching up with a blast from your past, Dr Mary Casey warns of the dangers of emotional infidelity.

Updating your retirement choices,Debbie McTaggartEditor

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FROM THE PUBLIsHER

HandS off tHe penSion

From the Editor 3From the Publisher 4Retirement income: the facts 5Government update 6Pension update 7Retirement living costs 8How does your spending 9 compare? How to retire overseas 10Emotional infidelity 12Health update 13Technology update 14Protecting the pension 15How to budget in retirement 16Reduce aged care funding 18 worries Super update 19What to expect with FoFa 20Legal update 22Maggie’s Dutch Ginger Cake 23Deals and discounts 24Do you have a social profile? 25Money-saving vouchers 26Diary dates 28

contentS

F or 40 or 50 years older Australians have worked and paid taxes to build schools, universities, roads

and airports for the generations which follow. So please don’t tell us we are ‘leaners’. Our generation really doesn’t know the meaning of the word.

Most of us are nearing retirement both underfunded and disadvantaged, mainly because we have not enjoyed the benefits of compulsory super for as long as the generations which follow us.

So what is your government doing for us, Mr. Hockey? First of all, you tell us there is a budget crisis because so many of us getting older at the same time. Apart from the obvious fact that we didn’t choose when we were born nor how long we might now live, this so-called ‘crisis’ is hotly disputed by a majority of independent Australian economists.

And surely, if there is an ageing population crisis, why, along with a Minister for Science, did your government see fit to axe the role of Minister for Ageing? Why wasn’t this portfolio considered sufficiently important?Next you bring down the mother of all budgets and beat up those who are most vulnerable – in particular, those who rely upon welfare for their daily existence. On most measures, Australia is the second wealthiest developed nation. But it is also the third meanest country in the OECD when it comes to spending on the Age Pension. To make matters worse, we have the third highest fees in the world for our private retirement savings (superannuation). An impost which can cost us up to $100,000 by the time we leave the workforce. Again, we ask why?

More importantly, what is it about recognising the value, contribution and potential of older people that you don’t get, Mr Hockey?Why do you not understand that we want our government to help us to help ourselves?We don’t want a handout. We simply want a fair go.

So what does a fair go look like for retirees? The following policy changes are neither complex nor costly, but would help

many older Australians reveal their true productivity.

1. Leave the Age Pension age at 67 (by 2023). Don’t lift it to 70 unless you have addressed the employment possibilities for mature workers first. Forcing 65 year olds onto Newstart is simply indefensible.

2. Review the Age Pension rates. They are too low. Check the ASFA retirement living costs on page 8 if you think people can get by on their current pension income. They can’t. The suggested changes to indexation and deeming rates are draconian and must be dropped.

3. Legislate to ensure we can access trustworthy and affordable financial advice. This is currently missing in action and the rollback of the FoFA legislation has worsened the situation. We need more rigorous regulation of retirement income products and the people who sell them if we expect people to successfully manage their own retirement income and avoid welfare.

4. Increase financial literacy. The plethora of increasingly complex financial products, and ever more confusing rules on superannuation and pension entitlements, requires urgent support to help older Australians navigate the maze of options.

In closing, Mr. Hockey, when your government talks about ‘Team Australia’, it is important to remember that older Australians are Team Australia’s longest serving members. We’ve never asked for an unearned hand-out. And we’re not about to start.

We simply want you to implement policies that help us to help ourselves.

Or you’ll hear from us again – at the ballot box.

We don’t want a handout. We simply want a fair go.

some questions for Mr. Joe Hockey

Kaye Fallick Publisher

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retirement income: tHe factSA ustralians aged 65 and over

accounted for 14 per cent of the population in the most recent

census. We know this demographic is increasing, but do older Australians really represent the burden on the country’s budget that we have been led to believe?

Understanding the retirement income streams of our 4.4 million retirees gives us a more accurate picture of how social service entitlements might best be managed and directed.

RETIREMENT INsIGHTs

22,485,300

AustrAliAn populAtion

2011

AustrAliAns Aged over 65 not Working % of over 65s Full Age pension recipients 1,293,856 41%part Age pension recipients 865,131 27%dvA pension recipients 228,510 7%self funded retirees 629,901 20%

still working % of over 65s 166,029 5%total 3,183,427

retirement income Full/part Age pension recipients 2,158,987 68%dvA pension recipients 228,510 7%total 2,387,497

75%oF over 65s

AustrAliAn retirees retirees aged 65+ 3,017,398 13%retirees aged 55-64 (self-funded or dsp) 1,361,689 6%total 4,379,087

oF populAtion19%

oF populAtion14%

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GOvERNMENT UPDaTE

Proposed changes to pension legislation resulting from the Federal Budget 2014/15 are currently being debated in the Senate but, should they be passed, the affects on pension income will be harsh.

Government update September 2014

A s we publish this September issue of YOURLifeChoices Quarterly Retirement Update, the

Federal Government is attempting to pass legislation through the Senate which will have a monumental effect on the retirement funding for Australia’s current and future pensioners. The changes, which are due to be implemented from July 2017 onwards, will not only see the payment rate of the Age Pension fall, but will also see fewer Australians qualify for the Age Pension. The major proposed changes are as follows:

1. From 1 July 2017, increases to pensions, including the Age Pension and Disability Support Pension, will only be linked to inflation and will not be benchmarked to Male Total Average Weekly Earnings (MTAWE).

Impact: Over the previous four years to March 2014, benchmarking to MTAWE has resulted in pension payments over that period totalling $2000 (source: http://standto.org/budget-2014-15-budget-items) more than they would have been if linked only to inflation.

2. Freezing of eligibility thresholds for the Age Pension and pension-related payments for three years from 2017.

Impact: This means that despite assets increasing in value, Age Pension disqualification limits will not, resulting in more people having their pension reduced, or losing it altogether.

3. For the purposes of the pension income test, the Government will change how it deems the return from a person’s financial assets. From 20 September 2017, the deeming thresholds will be reset from $46,600 to $30,000 for singles and from $77,400 to $50,000 for couples.

Impact: This essentially means that income above the new, lower thresholds will attract the higher deeming rate, which is currently 3.5 per cent. When coupled with the freeze in indexation of asset and income limits, the effect of this move is greatly magnified.

How proposed changes to pension legislation may affect you

DeenaAs an aged pensioner I am really concerned about the proposal the government is putting forward. In four years time costs will have risen substantially and the proposals to no longer calculate by indexation mean that the twice-yearly rises will be much less.

BookwrymI dislike all the political parties. They all need to get the message that pensioners, DSP pensioners, unemployed and other seniors are fed up and won't take any more!

Getting GrumpierDefinitely need to let all politicians from all parties know not to muck around with this powerful demographic. To steamroller over us would be short sighted.

Travellers JoyMaintaining indexation is of primary importance, the cut off points for the deeming rates should stay. And only a few are able to work to 70.

What you told us

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Indexation to the eligibility thresholds for the Age Pension may mean that more people may qualify for

at least a part Age Pension. But the introduction of indexation for disqualifying income limits,

which apply to the Commonwealth Seniors Health Card, may give self-funded retirees

access to welcome concessions. So, which other anticipated changes may affect your

pension?

penSion update September 2014

New pension ratesThe bi-annual indexation of pension payment rates occurred on 20 September 2014 and has resulted in an increase of $11.50 per fortnight for a full, single Age Pension. The income and asset disqualification limits which apply to part Age Pensions have also been indexed. To view the new rates and limits which apply, click the YOURLifeChoices links below.

Pension payment rates

Asset test tables

Income test limits

Indexation of CSHC income limitsFrom 20 September 2014, income disqualification limits for the Commonwealth Seniors Health Card have been indexed. This means that those self-funded retirees who previously just missed out on qualifying may now be able to access valuable concessions. The disqualifying rates are now $51,500 (single) and $82,400 (couple). Find out more at YOURLifeChoices.com.au.

Changes to deeming rulesChanges to deeming rules which apply to financial investments will take place from 1 January 2015 and will mean that account-based income streams will be assessed for several Centrelink benefits. Those who receive an Age Pension, Low Income Health Care Card and self-funded retirees receiving aged care are just some of the groups which will be affected by these changes, should they commence a new product after 1 January 2015.

To find out how you may be affected, visit HumanServices.gov.au.

Changes to Centrelink online accountsIf you access your Centrelink details for the purposes of income reporting, applying for an advance payment or requesting documents, you may have noticed that your account has changed. The changes do not affect your entitlements or change your reporting responsibilities, but they should make accessing information simpler.

To find out more, visit HumanServices.gov.au.

PENsION UPDaTE

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RETIREMENT LIvING COsTs

The association of Superannuation Funds of australia Retirement Standard – June quarter 2014 In August the Association of Super Funds of Australia (ASFA) released the ASFA Retirement Standard. This included a detailed weekly budget breakdown for singles and couples in retirement, supporting either a modest or comfortable lifestyle.

ASFA has kindly allowed YOURLifeChoices to share this information (for the June quarter 2014) in the table below.

Your retirement livinG coStS

Expenditure items Comfortable couple Modest couple Comfortable single female

Modest single female

Building and contents insurance 27.94 22.12 23.28 22.20Rates 32.81 27.94 27.94 28.05Home improvements 9.31 0.00 9.31 0.00Repairs and maintenance 16.30 11.64 13.96 14.02Total housing 86.35 61.70 74.49 64.27

Electricity and gas 59.54 57.46 43.90 43.26Total energy 59.54 57.46 43.90 43.26

Food – groceries and other fresh food 195.84 157.76 108.80 76.16Total food 195.84 157.76 108.80 76.16

Bundle of home phone, broadband, mobile 32.90 16.46 25.85 9.40Total communications 32.90 16.46 25.85 9.40

Household cleaning and other supplies 25.37 15.22 18.27 10.15Cosmetic and personal care items 3.02 2.91 6.80 1.95Barber or hairdresser 20.30 8.75 14.59 4.88Music and CDs 2.12 0.00 0.31 0.00Newspapers and magazines 8.13 1.89 7.94 2.38Computer, printer, software 4.16 4.16 4.16 4.16Household appliances 11.65 2.95 9.93 2.95Pest control, alarm service 12.46 0.00 12.46 0.00Total household goods and services 87.23 35.89 74.46 26.47

Clothing 57.95 28.98 38.64 17.85Total clothing and footwear 57.95 28.98 38.64 17.85

Car transport and running costs 140.56 93.42 140.56 93.42Public transport 5.45 5.45 2.72 2.72Total transport 146.01 98.87 143.28 96.15

Health insurance 78.76 63.16 40.07 31.58Chemist 23.16 3.16 12.77 1.738Co-payment and out of pocket 40.63 12.25 27.92 7.35Total health services 142.55 78.57 80.77 40.71

Membership clubs 9.64 1.93 4.84 0.97TV, DVD, digital camera 1.78 0.90 1.78 0.90Alcohol consumed in home (or equivalent spent) 40.24 15.09 25.15 10.06Lunches and dinners out 80.47 25.02 60.12 30.07Cinema, plays, sport and day trips 13.49 18.79 6.74 5.78Domestic vacations 77.09 36.62 66.53 18.31Overseas vacations 53.95 0.00 36.62 0.00Sundry items 29.76 11.56 22.82 7.71Total leisure 306.41 109.93 223.60 73.78

Gifts and/or alcohol or tobacco 0.00 0.00 0.00 0.00

Total weekly expenditure $1,114.78 $645.62 $813.78 $448.06

Total annual expenditure $58,128 $33,664 $42,433 $23,363

Weekly expenditure

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YOUR RETIREMENT BUDGET

What about YOU?Here is a handy table you can print out and complete to check whether your weekly, monthly and annual spending is similar to the different levels quoted in the ASFA Retirement Standard. Use it to work out if you are admirably thrifty – or need to trim your costs to keep within your budget level.

HoW doeS Your SpendinG compare?

Expenditure items Weekly Monthly annual

Building and contents insuranceRatesHome improvementsRepairs and maintenanceTotal housing

Electricity and gasTotal energy

Food – groceries and other fresh foodTotal food

Bundle of home phone, broadband, mobileTotal communications

Household cleaning and other suppliesCosmetic and personal care itemsBarber or hairdresserMusic and CDsNewspapers and magazinesComputer, printer, softwareHousehold appliancesPest control, alarm serviceTotal household goods and services

ClothingTotal clothing and footwear

Car transport and running costsPublic transportTotal transport

Health insuranceChemistCo-payment and out of pocketTotal health services

Membership clubsTV, DVD, digital cameraAlcohol consumed in home (or equivalent spent)Lunches and dinners outCinema, plays, sport and day tripsDomestic vacationsOverseas vacationsSundry itemsTotal leisure

Gifts and/or alcohol or tobacco

Total expenditure

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HOw TO RETIRE OvERsEas

Dreaming of retiring somewhere sunnier and more affordable? It’s entirely possible says Stephen Wyatt, co-author of a new book on selling up and taking off.

HoW to retire overSeaS

B aby boomers are on the move, ditching the traditional view of retirement and heading to

Southeast Asia for a better and a vastly cheaper life.

After all 60 is the new 40. So why not spice things up and take off for a few years or forever? Why not go and live on the beach in Phuket, Thailand or Penang, Malaysia or in the mountains in Ubud, Bali?

Glen and Sal did this. They had always wanted to live on a beach and they were getting really sick of cold winters. They had been in the grape growing business in central NSW for 30 years. Their kids had grown up. The dog was dead and they were rattling around in their house. Fit and healthy, they felt they needed another life.

So they packed up and moved to Phuket in Thailand where they bought a three bedroom, three bathroom, two lounge room house with a pool, a stone’s throw from the beach, for little more than $200,000.

They were not short of funds but are still amazed at how cheap life is for them. And it is a luxurious life. ‘You can send out your laundry, have a gardener, have regular massages, have a maid,’ said Sal.

“We only cook at home about once a month—we invite our friends and family over for roast lamb. Lamb here is plentiful and cheaper than Australia.”

Another couple chose Bali. When their working lives came to an end, they realised that they were underfunded for a decent life in Australia. They had never owned property, so for them retirement meant a caravan park in Western Victoria or somewhere up the coast in NSW. So in 2010 they moved to Ubud in Bali and for

$60,000 built a Balinese-style house with in-ground pool and landscaped gardens. They have three staff and live in luxury.

There are really good reasons for retiring in Southeast Asia, other than, of course, the fact that you could live your dream in paradise. These reasons are partly economic. Southeast Asia is fundamentally cheaper. Rents are up to 80 per cent lower than in Australia. The general cost of living is anywhere between 50 per cent and 80 per cent lower.

Thousands of Australian retirees are already packing up and taking off overseas. Almost 80,000 Australians receive the age pension overseas and the numbers are climbing. They increased by 30 per cent from 2007 to 2012. More than 40,000 Australians live in Thailand alone, although it is difficult to determine what percentage of these are retirees.

This is just the beginning of a significant change in the pattern of retirement. The demographic story is compelling.

As the boomers age, the ranks of Australia’s retired will explode. The number of Australians over 65 will almost triple to eight million within the next 25 years. Many will be underfunded. Many just want to live life more fully. At the same time, the Australian Government may be less able to fund health care, aged services and pensions.

Of course, a life overseas is not for everyone, but it is a real alternative - and possibility.

The good news for Australian retirees is that government pensions and super pensions are transportable. But there are catches and people need to be fully aware of them.

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HOw TO RETIRE OvERsEas

Any move, whether a three month sabbatical, a two year break or a total relocation, requires careful planning, especially pension, super and tax planning. It also requires careful consideration of visa and health issues.

For example, the Australian Government pension is transportable, but the rub is that you have to be living in Australia to initially be awarded the pension. Once you are receiving the pension you can pack up and take off to another country with that Australian pension.

Another trap is the impact that selling or renting the family home may have on your pension eligibility. Will you fail the asset or income tests?

Pensions from your superannuation fund are also transportable and they remain tax-free. But those with a Self-Managed Super Fund (SMSF) need to ensure that the fund is always a compliant fund. It is critical to seek professional advice before leaving Australia.

Five top tips for your move overseasBut before simply packing up and taking off, you need to do your homework and cover some basic issues.

Here they are -

1) Make sure that your finances are in order before you leave. Make sure that your superannuation pension stays tax-free while you are overseas. If you have a Self-Managed Super Fund (SMSF), it will need to be restructured to ensure it remains a complying fund. If you are relying on the Age Pension for income, you will need to be eligible for, and already receiving, that pension before you relocate.

2) Organise your long-stay visas from Australia. There are retirement visas available in Thailand, Malaysia and Indonesia. You will need long stay visas for Europe unless you have an EU passport.

3) Take out an international health insurance policy. It is worth the expense. There is a very competitive global market for health insurance products. Use sites like www.medibroker.com to compare products.

4) Rent before you buy in your new country. It may be best not to buy at all – property rules for foreigners can be complex and, in Southeast Asia at least, rents are cheap.

5) Get on top of technology. Get set on Skype, Viber and Facebook to stay in touch with friends and family

MORE

Sell Up, Pack Up and Take OffStephen Wyatt & Colleen RyanAllen & Unwin, 2014www.planet-boomer.com

YOURLifeChoices Retirement Update September 2014 11

TwO OF Us

Having someone to confide in is important, but when an emotional bond develops, it can spell disaster for an existing relationship. Dr. Mary Casey explains how to avoid emotional infidelity.

emotional infidelitY

E motional infidelity occurs more often than we think and it can happen very easily.

It doesn’t take much to connect with someone when we are feeling down, not listened to or not understood by our partner, especially when another person has an open heart, listening ear and is empathetic to our feelings.

We all have times when we feel unhappy and disconnected from our partner and often we don’t say anything because we think that we will get through it and it’s just a one-off crappy time for both of us.

Unfortunately, this is the very point at which we should communicate how we are feeling. When cracks are appearing, alarm bells are ringing and we are choosing to ignore them, we are actually putting our relationship at risk.

It is important to set time aside to deal with this. There’s no point saying anything while angry or in the middle of an argument. Wait until things are calm and then sit and talk, talk, talk.

If your partner is not interested in hearing your concerns, it is important to point out that not doing so will cause you to look elsewhere for someone with whom to share your feelings.

The problem always lies in our inability to communicate the truth that is deep within us!

Sometimes we outgrow our partner or vice versa. This occurs when only one person in the relationship is continually growing personally, professionally or spiritually (nothing to do with religion).

For instance one partner is happy, exercises regularly, eats well, meditates or prays daily and loves the work they do. The other person may not be working, overeating, putting on weight and be in a state of unhappiness, anger or anxiety. This is a recipe for growing apart.

Another example is if our partner is not a good communicator and lacks intimacy. We tend to use this as an excuse for our emotional infidelity…but hey! This person was our choice. We already knew this when we entered the relationship.

We may also have improved our communication and our partner hasn’t. When this occurs, we tend to stray and look for someone with whom to communicate on a deeper level. If this is the case, we need to give our partner the opportunity to learn before straying, because once we begin to invest our time with another person on an intimate level, things can develop very quickly. If it continues for too long, feelings become deeper and, before long, we need the other person more than our partner. In time the new relationship needs physical contact and sex, and often it is too late to restore the relationship with our partner.

It is important, as well as communicating effectively, to be on the same path in terms of your plans, goals and dreams and to both be contributing to these in one way or another. If one partner doesn’t work, they can contribute by

way of doing all the cooking, cleaning and housework and not expect the one working to do these chores as well. This is a common cause for emotional infidelity.

The answer to avoiding such a situation is to take responsibility for our feelings. All too often we are searching for ‘more’. We are looking for something outside ourselves rather than what’s going on inside. We blame the other person for not being able to make us happy and we seek out someone who we think will provide what we need to be happy. This is where we make our biggest mistake!

People leave their partner because they have connected with someone else on an emotional level. They think they have found what they needed.

Emotional infidelity occurs when we are unhappy at some level about something. Whatever that something is, it is up to us to work it out – alone. Adding someone else to the relationship is not a resolution; it is destructive.

Restoring a relationship after being emotionally disloyal and unfaithful can take a long time. If the other person finds out, then it can take years to build trust again.

If only we could realise that choosing emotional infidelity is so much more painful than what it takes to learn about ourselves and find the happiness that lies within each and every one of us.

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MORE

Dr Mary Casey (Doctorate of Psychology) is the CEO of the Casey Centre

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Keeping up-to-date with the latest health research is a full-time role, so here’s the most relevant news from around the globe to keep you informed.

HealtH update September 2014

Re-wiring bad memories Massachusetts Institute of Technology (MIT) researchers have conducted a neurological study on mice, and found that memories can be changed from bad to good by using light to control the activity of brain cells. The scientists achieved this by giving the mice fearful and pleasurable memories, and found that the pleasurable memories eventually overrode the fearful ones. The study, soon to be conducted on humans, could prove helpful in treating mental illness, including psychiatric disorders.

Sleeping pills linked to alzheimer’sTaking prescription benzodiazepines (sleeping pills) can increase your risk of Alzheimer’s disease by 50 per cent. A study looked at people aged 66 and above, and found a direct association between long-term benzodiazepine use and Alzheimer’s disease. The study, funded by the French National Institute of Health and Medical Research, recommends that benzodiazepines should not be taken for longer than four weeks. Benzodiazepines are powerful sedative drugs and should only be taken in cases of extreme insomnia and disabling anxiety.

Walking to prevent breast cancerPost-menopausal women who walk for at least four hours a week or do sport for two hours a week can reduce their risk of breast cancer by 10 per cent, according to a study carried out by the Nutrition, Hormones and Women’s Health team at the Centre for Research in Epidemiology and Population Health. A lack of physical activity, along with excess body fat can increase your chances of many cancers, as well as cardiovascular diseases.

Five a day is plentyThere appears to be no extra health benefit from eating more than the recommended five serves per day of fruit and vegetables. A study was carried out in China and America to specifically determine whether there was a link between the number of servings of fruit and vegetables and the health benefits. A five per cent reduction in risk of death from any health-related cause was found for each serving of fruits or vegetables consumed per day. But the study found that this benefit reached its limit at around five servings.

age-related hearing lossAs we age most people tend to lose some of their hearing ability, with over 50 per cent of people aged 60 and above having some degree of hearing loss. Age-related hearing loss occurs because the tiny hair cells in the inner-ear break down as you get older. Excessive noise, incorrect ear-cleaning and some medications are also factors. If you have hearing loss you should have your hearing assessed, or you can do this online hearing test for free.

HEaLTH UPDaTE

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tecHnoloGY update September 2014

TECH UPDaTE

Technology moves so quickly it can be difficult to keep up. Learn the top five tech trends you need to know so you’re not left behind.

Revolutionary speed-reading appSpritz, an American software development company, has released an app which makes reading on smartphones or small screens easier and quicker. The app, also called Spritz, shows you one word at a time and highlights a certain character to enable you to read without having to move your eyes. This can increase your reading rate to up to 1000 words per minute; at this rate you could read Tolstoy’s War and Peace in less than 10 hours.

Click here to test it and learn how you can get the Spritz app on your smartphone.

Kids react to old technologyThe pace at which technology changes seems to increase every month. The YouTube channel TheFineBros has started a series of funny videos addressing this. In these videos, kids are given out-dated technology and asked to guess what it is and how to use it. Some examples of the out-dated technology include cassette players, rotary phones and typewriters.

Click here to watch these hilarious videos of kids struggling to understand older technology.

Open source electric carsIn an effort to combat the massive number of new petrol-powered cars being produced, the CEO of the electric car company Tesla Motors, Ellon Musk, has published a blog post saying that his company will allow anyone to use its electric car patents. Currently, less than one per cent of all new cars purchased are electric, so Tesla Motors is taking a great risk for the sake of the world’s future.

Click here to read Ellon Musk’s blog post.

Man-made leaf Innovative engineer Julian Melchiorri has developed what he thinks may be the key to future space travel and colonisation: a manufacturable leaf material. Functioning like a real leaf, using water and sunlight to create oxygen, the synthetic leaf could solve problems with growing plants in zero gravity environments. The material could also potentially be used to create lampshades to help people living in cramped spaces get some fresh air.

Click here to read more about this exciting new technology.

Revolutionary new computerHewlett Packard (HP) has created a new device capable of accessing 640,000 gigabytes of data in one billionth of a second. Blurring the lines between a server, computer and phone, HP’s new device is known simply as “The Machine”. The company says that it will be six times as powerful as existing data servers and use 80 per cent less energy, addressing the environmental implications of the internet’s massive databanks. Did you know that the public cloud uses as much energy as Japan?

Click here to watch HP’s informative video about their plans to revolutionise the way in which we store and access data.

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RETIREMENT RIGHTs

We need to recognise that not all older workers are the same, says Age Discrimination Commissioner Susan Ryan.

protectinG tHe penSion

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For more information contact the Department of Human Services, Centrelink, Older Australians. Ph 13 23 00 or visit www.humanservices.gov.au

You may like to read the Australian Human Rights Commission’s guide Your Rights At Retirement. Limited stocks of hard copies are available (Ph 1300 369 711).

If you experience age discrimination, you can make a complaint to the AHRC. Complaints are confidential and free of charge. Ph 1300 656 419, or email complaintsinfo@humanrights.gov.au.

D espite recent debate about the Age Pension settings, on a broad level, Australians should

recognise the strengths of our social safety net. The pension was introduced in 1908 at a rate of £26 per year. In today’s dollar that’s about $5000 - not very generous, though the level of today’s yearly rate, around $21,900, still seems low for those entirely dependent upon it. In addition, you’d be lucky to get any age pension at all in 1908 as life expectancy was 55 and the qualifying age was 65. Only four per cent of the population reached pension age then; over 80 per cent of retired people draw full or part pensions these days.

It is proper that our social safety net has expanded as Australia has grown and become richer with life expectancy increasing dramatically.

To be eligible for the pension you must be of a certain age (currently 65, but rising) and meet an income and assets test. The amount which you receive depends upon your income from sources such as employment, superannuation and investments; and the value of your assets, such as your house, savings, super and investments. For couples, combined circumstances are taken into account.

In addition to the Age Pension, older Australians may be eligible for other social support – the Carer Payment, the Carer Allowance, the Grandparent Child Care Benefit, the Disability Support Pension, and Newstart Allowance.

Concessions for health care also provide support for pensioners, and aged care services are funded significantly by the Commonwealth Government.

There has been extensive debate about the changes to the Age Pension which were announced in the Federal Budget 2014/2015, particularly surrounding the proposal to raise the eligibility age to 70 by 2035.

My view is that there is no benefit to individuals or to the public purse in making this change while older Australians are prevented from working by age discrimination. Many people in their 50s and 60s are struggling on Newstart

payments because employers won’t give them a chance, despite their long-term skills and experience. We need effective efforts to address age discriminatory practices amongst employers and recruiters so that older people who want to work are not prevented from doing so.

The recognition that not all older workers are the same means that further increases in the pension age should be accompanied by provisions that allow early access for people who do not have the physical capacity to continue in the workforce.

Australia has a strong safety net, but we must be vigilant in responding to any changes that could undermine it.

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FINaNCE Q&a

“[A] budget… provides a framework with which we can make future financial decisions.”

YOURLifeChoices no-nonsense financial planner Maurice Patane shares his advice on how to create a realistic and achievable budget.

HoW to budGet in retirement – and Stick to it

W hether you’re already retired or still in the planning stage, your objective is likely to be

to have enough money so that you don’t worry about it; financial freedom. For one person this could be $20,000 per annum, while for someone else $100,000 per annum might not be enough.

Everyone has a lifestyle to which they’ve become accustomed. We either want to maintain it or improve upon it, but we certainly don’t want it to go backwards. Taking the time to define the life which we wish to have helps us to understand how much money we will need in order to enjoy our retirement, and also to become inspired to do whatever it takes to achieve that lifestyle. Having a purpose provides both a focus and a link between the actions which you need to take today and your goals for the future.

A budget is simply a tool which provides the foundation for building a personal financial plan. Although it can often seem boring, having a budget triggers challenging conversations about the future. It also forces us to take the time to determine what is important to us and the sacrifices which we may need to make to reach our goals.

But here’s the thing; a budget doesn’t lock us into a situation. Instead, it provides a framework with which we can make future financial decisions.

Financially independent people didn’t become so and then decide to complete a budget. They developed a budget and reviewed it periodically to make the appropriate changes required, informed by their changing circumstances.

Creating a workable budget requires us to begin with the facts: the money going

Apart from thinking of your actual goal, consider the advantages and benefits which you are likely to enjoy as the result of achieving it. How will your life be better? The more reasons which you have, the greater the motivation to achieve your goal.

Bypassing the important first step of defining the life which we want simply creates frustration and a lack of control. We end up reacting to events rather than designing and implementing a financial plan.

in and out across a whole year. There are a few ways you can record this. You can set up an Excel spreadsheet, download a budget planner or another planning app, or simply get a piece of paper to record the information. The Money Smart website, is a good start if you would like to download a budget planner.

This planner allows you to do things such as graph your spending and put it into various categories, so you know what's going where.

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FINaNCE Q&a

Let’s begin with the money going out. This will fall into one of two categories: fixed or variable expenses. You can obtain this information from your most recent bank or credit card statement, or from receipts. Just estimate if there's anything which you can't find, or if amounts vary across the year, as you will most likely refine it later.

Fixed expenses tend to be expenses which we cannot live without and provide the foundation of our lifestyle. On the other hand, variable expenses will fluctuate due to your usage or requirements and are generally considered to be those expenses which can be reduced, deferred or eliminated without too much difficulty. For example, if you're short on money, the entertainment budget is likely to take a hit with you opting to stay home on a Friday night. Or perhaps you choose not to buy the new clothes which you've been considering. Part of taking control of your money is learning how to exercise some discipline in your spending habits.

The following table provides some examples of fixed and variable expenses.

Fixed Variable

Mortgage payments or rent

Birthdays and gifts

Transport (petrol, public transport)

Holidays

Utilities Entertainment

Food Personal grooming

Insurance Clothes

The total of the above expenses represents the amount of money which you will need in order to support your lifestyle.

Once you have completed the above, you will need to determine your sources of income. These may include employment income, Centrelink payments, superannuation, pensions, rent, dividends and interest.

You will now be left with one of two outcomes. Your inflows will be greater than your outflows (good), or your inflows will be less than or equal to your outflows (bad). If you are in the second category, you have two choices: increase your income (if possible) or cut the expenses. It may be difficult to face certain financial realities, but once the truth is known, then it’s possible to figure out a plan to fix an issue if and where it exists.

Either way, a key consideration is how to establish the most appropriate structures which will help to create the discipline needed to increase the likelihood of your success. Consider an online account to act as the hub for all of your banking. Ensure that all sources of income are directed to this account. Then you can establish an automatic transfer to your everyday bank account which is equal to the amount determined necessary to provide for your lifestyle needs.

As a general rule, you should maintain an amount equal to around three months’ worth of expenses, just in case of an emergency, and try to avoid using a credit card.

Structuring your banking in this manner will enable you to keep your spending in line with your budget and ensure that your surplus income is captured as

it is received. This will allow for further investment opportunities and the funding of your goals for the future.

Whether you use a budget planner or simply grab a pen and write down everything that you spend, the best way to change long-term behaviour is with short-term feedback. If you aren't reinforcing those initial choices with ongoing feedback, you will go off the rails and that perfect plan won't look so perfect anymore. Relying on willpower and discipline alone isn't enough. Forming a support system of friends, family or seeking the assistance of a financial planner, will motivate you and challenge you to stick to your goals.

And here’s another thing. The accomplishment of the goal is merely a minor achievement compared with the development of the lifelong skills of goal setting and adhering to a plan.

“Give a man a fish, and you feed him for a day; show him how to catch fish, and you feed him for a lifetime.”

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Do you have a question for Maurice? Then send it to us now.

Maurice PataneAccess Financial Management AFSL 229760Ph (03) 9500 9988E financeq+a@yourlifechoices.com.au

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aGED CaRE UPDaTE

Changes to the aged care rules have made an already complicated system even more difficult to navigate, so Louise Biti, Director, Aged Care Steps, simplifies the financial aspects with five tips to reduce the stress of moving into care.

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For information on aged care and fees: www.myagedcare.gov.au

For a referral to a financial planner qualified in aged care advice: www.agedcaresteps.com.au

reduce aGed care fundinG WorrieS

T he new aged care rules offer more options and greater transparency but they are much more difficult to

navigate and you may find that fees are higher. So here are five financial tips to help reduce your stress.

1. Don’t rush your decisionMaking quick financial decisions can lead to disastrous outcomes. You don’t need to make all your financial decisions before you move in. Just make sure you understand what it will cost for your accommodation and check that you can afford this charge.

Once you move in, you have another 28 days to get advice and let the service provider know whether you want to pay for accommodation as a lump sum (called a Refundable Accommodation Deposit - RAD) or a daily ‘rental’ payment (called a Daily Accommodation Payment – DAP).

2. ask if you can negotiateFinding out how much a room in care will cost has become much easier as accommodation prices are now published. Check what is on offer at www.myagedcare.gov.au/service-finders

If the rates look too high for what you can comfortably afford, ask the service provider if it would be willing to negotiate a lower rate. The rate published is the maximum it can charge you for accommodation. If you can show that you don’t have enough assets or income to meet this cost without causing your financial difficulty, the provider may be willing to offer you a lower price. Remember – it doesn’t hurt to ask.

3. Look at ways to manage cashflow

Many people have their money tied up in their home which can take a while to sell or rent. This can make cashflow tight, particularly when you first move into care.

A good tip which may help is to pay as much as you can as a lump sum (RAD) and ask for the daily payments (DAP) on the unpaid amount to be deducted from the RAD paid. This reduces the amount you will get back, but can help you to meet all of your expenses.

4. Consider an annuity to reduce fees

If you have money sitting in the bank or plan to sell your home, consider your options for buying an annuity. These investments can help to reduce your ongoing care fees and increase your Age Pension entitlements. But before you decide, it is critical to obtain independent, qualified financial advice.

5. Get financial advice The final tip is to ask for help. Aged care rules are complex and there are so many pieces of the puzzle to fit together. Advice from a financial planner who is experienced in aged care can help to find the right solution for you and your family.

Aged Care Steps is an independent firm specialising in training and supporting advice professionals with aged care advice.

Disclaimer: This is general advice and does not take into account your particular circumstances or objectives. Before taking any action you should seek personal financial planning, taxation or legal advice and refer to the relevant Product Disclosure Statement before investing in any product. Aged Care Steps is an authorised representative of Strategy Steps Pty Ltd ABN 14130045242, AFSL 333649.

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sUPER UPDaTE

Changes will be made to the assessment by Centrelink of account-based pensions but who will it affect and how? SuperRatings’ Jeff Bresnahan explains.

Will cHanGeS to deeminG ruleS affect Your penSion?

Read SuperRatings disclaimer

T he changes to the deeming rules for the Age Pension income test, which are due to take effect from

1 January 2015, may have significant implications for any individual currently in receipt of the Age Pension. But what exactly is due to change and if you think it may affect you, what should you do about it?

The current treatment of account-based pensions (which are the majority of pensions paid by superannuation funds on a member’s retirement) generally results in better financial outcomes when compared to other investments. This is largely due to the income received from pensions being exempt from the Age Pension income test.

From 1 January 2015, the income deemed to be received from any new account-based pension will be included in the definition of ‘financial assets’ for Age Pension assessment purposes. This means that the deemed income will be included in the Age Pension income test and may reduce the level of the Age Pension which an individual receives.

However, if you commence, or have commenced, an account based pension prior to 1 January 2015, the news isn’t all bad. The Federal Government has confirmed that it will maintain the existing rules, which means that the income deemed from an account-based pension will only count towards the Age Pension income test for pensions commenced after 1 January 2015. This means that for those people already receiving income from an account-based pension prior to this date, there will be no impact on Age Pension payments. As always, exceptions do apply and the Government has indicated that existing rules will only be maintained if there is no change to the existing account-based pension after 1 January 2015. What this means is that if an individual changes their pension product in any way, or changes the fund which provides this pension, the income received from the altered pension product will subsequently be assessed under the Age Pension income test and may result in a reduction in the amount of the Age Pension received.

Given that the changes commenceon1 January 2015, any individual currently receiving an account-based pension has a three-month window to review their existing arrangements to ensure they are comfortable with the pension product they currently have. In particular,

individuals should review their product provider, the pension’s fee structure and the investment returns they have been receiving to ensure these are appropriate for their circumstances. It is particularly important to ensure that a current product meets an individual’s needs for the medium to long term, given that any changes made to the product after 1 January 2015 will impact on that individual’s Age Pension entitlement. Where individuals believe they should move to another product, this must be done prior to 1 January 2015 to maintain the current Age Pension income test exemption.

SuperRatings offers a pension product comparator through its SuperSavvy website (www.supersavvy.com.au) so individuals may wish to use this as a first step in reviewing the competitiveness of their pension product.

As with all comparisons, individuals must consider their own financial situation when selecting the product that is right for them. Given the complexities of age pension entitlements and the associated income test, individuals may also wish to consult a qualified financial adviser to discuss the impact of these changes on their specific circumstances.

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MONEY ExPLaINED

Are you seeking financial advice? NICRI’s Craig Hall explains how the new FoFA legislative changes will affect you.

WHat to expect WitH fofa

M uch debate and discussion has occurred regarding the Future of Financial Advice

(FoFA) initiatives first introduced by the Labor Government in 2012. The original objectives, as stated on the FoFA website, ‘…are to improve the trust and confidence of Australian retail investors in the financial services sector and ensure the availability, accessibility and affordability of high quality financial advice.’

It seems that both the current and previous governments have had difficulty in striking a balance which satisfies advocates for both those seeking and those providing advice. In July this year, some aspects of the FoFA reforms were rescinded by the Abbott Government. The debate regarding whether the measures go too far, or not far enough, will continue well into the future as the FoFA outcomes are measured and technology and innovation bring change to the industry. Despite this, it is fair to say that we will still have a more robust, more transparent and less conflicted system than we did before.

So, how will this affect us as individuals? Here is what the FoFA changes mean for those seeking financial advice.

Banning of conflicted remuneration/commissionsFinancial planners are no longer allowed to receive any payment considered to be conflicted remuneration - most commonly commissions - for recommending certain investment products. Their income is likely to come directly from their clients and will be determined by factors, such as the complexity of the situation, the time taken to research and formulate recommendations, the services included and the actions involved to maintain the portfolio on an ongoing basis. This measure is intended to remove the possibility and/or the perception that recommendations are made primarily for the benefit of the planner.

This ban does not apply to certain financial services products and existing arrangements which were in place prior to 1 July 2013 will remain.

Tip – Discuss the fee structure thoroughly with your financial planner and obtain a copy of the Financial Services Guide (FSG) at your initial meeting.

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For further information on superannuation, income streams and financial planning issues please contact NICRI toll free ph 1800 020 110, email nicri@nicri.org.au or visit www.nicri.org.au

Fee Disclosure Statement (FDS)When a financial plan is presented, an FDS should be presented along with the Statement of Advice (SoA). This FDS outlines the specific service and fee arrangement between you and your planner. These agreements may also be referred to as an Ongoing Service Agreement, Ongoing Fee Arrangement or a Client Service Agreement. Importantly, they can be terminated at any time.

Tip – Look carefully into the services which are available to you as part of these agreements and consider whether they actually benefit you. Be sure to utilise all that is being offered.

Best Interest DutyWhile financial planners already had existing rules regarding the provision of appropriate advice, the ‘Best Interest Duty’ prescribes actions which are designed specifically to put your interests first when making recommendations.

Broadly speaking, when obtaining information and formulating the plan, the financial planner must identify and clarify the advice sought and assess whether they have the expertise to provide the advice. They must also identify your needs, objectives and any limitations or information which may affect the scope of the advice.

The National Information Centre on Retirement Investments (NICRI) Inc. is an Australian Government funded, independent consumer agency providing information to the general public on investment products.

MONEY ExPLaINED

The planner must then assess the information and conduct reasonable research into the products which might achieve the stated objectives and meet your needs. Finally, all judgements must be based on your relevant circumstances.

These obligations are in addition to other requirements, such as:

• the advice being appropriate

• prioritising your interest ahead of their own

• providing warnings if there is any incomplete or incorrect information supplied by you and,

• the requirement that the licensee ensures that their planner complies with these laws.

Tip – When the SoA is presented, ensure that your discussions with the planner focus on how the recommendations and any other services offered will best serve your interests.

Other measures A number of other measures have been introduced which deal with various aspects of advice, including:

• Scaled advice – clarification of ‘limited’ or ‘defined scoped’ advice with the aim to reduce the cost to those who seek ‘single issue’ or ‘non-holistic’ advice.

• Use of the term ‘financial planner’ – to enhance the competency and professionalism of planners, certain conditions and requirements must be met by individuals who wish to be referred to as a financial planner.

• Removal of the Australian Financial Services Licence (AFSL) exemption for accountants providing financial advice – to bring into line the licensing requirement for those who provide financial advice.

It is important to note this is not an exhaustive list of the measures and amendments which were introduced recently. At the time of writing the outcomes of the amendments and some of the original measures were yet to be fully finalised.

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LEGaL NEws

WHY You need eState planninG

T he political, economic and social landscape is changing rapidly for both current retirees and those

in transition to retirement. For many Australians uncertainty has replaced security.

Much of this change is beyond our control; the stock market, government, banks, effects of globalisation, the cost of living and medical expenses, to name a few.

However, there are some measures which you can take to help reduce risks related to issues which will one day become critical. These range from simple tasks such as a little forward planning to the ultimate acceptance of your own mortality. Believe it or not, there is definitely some truth in the old cliché, ‘nothing is as certain as death and taxes’.

So, while you still have the capacity to do so (i.e.; now),

• make a will

• prepare a power of attorney

• consider an advanced health care directive (living will).

It’s important to remember that loss of mental or physical capacity can be just as big a risk to your personal and financial affairs as death.

‘Why?’ You might ask. Because tomorrow may be too late. And it is not just growing older which dictates the need for estate

planning. Although we often like to believe that accidents, sudden illnesses and pre-mature deaths will not affect us or our families, this is, unfortunately, not always the case.

If you wish to determine the following for yourself:

• who looks after your finances if you are unable

• who looks after your legal affairs if you can’t

• who decides where you live and what health care you receive, if you can’t make these decisions

• who will manage your deceased estate

• who will inherit your assets

then attending to these simple documents will enable you to choose who carries out these roles as well as to specific how you want these individuals to exercise these powers.

If you do not address these needs, who will suffer? Firstly, if you are alive, but incapable, then YOU, your friends and family are all likely to suffer. Your loved ones will have to deal with issues that are legally out of their control which could cause unnecessary stress and expenditure. In the absence of suitable powers of attorney, your personal and financial affairs may be neglected and, of course, you will have no say in what happens to you or your finances. Unfortunately, your affairs may end up in the hands of a person who you would not have selected – perhaps the

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Rod Cunich is National Practice Group Leader for Wealth Protection, Succession & Estate Administration at Slater & Gordon.

For more information visit the Slater & Gordon website at: www.slatergordon.com.au

The information provided by Slater & Gordon in this article is general in nature and should not be relied upon as legal advice. Legal advice should be sought for specific matters.

Rod Cunich suggests how you can reduce risks associated with the uncertainties of life.

‘the black sheep’ in the family, or the most innumerate or irresponsible.

Secondly, if you do pass away without a will then you will have no control over who manages your estate, nor any say in who receives what. What is certain is that the management of your estate will cost more in fees and will be slower, perhaps resulting in hardship for the beneficiaries. Your assets will be distributed according to a statutory formula that varies from state to state. It’s a lucky dip, depending upon where you live, or where property is located. Your preferred beneficiaries may well miss out.

Remember that there are steps which you can take to help bring some certainty to your future. Do something about your estate planning today. Don’t let your lasting legacy be the unplanned mess which was left behind for your family to mop up.

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EaT wELL FOR LEss

This affordable and delicious Dutch Ginger Cake from our favourite chef, Maggie Beer, is a fantastic dessert option. Enjoy it with a scoop of ice cream or yoghurt.

maGGie’S dutcH GinGer cake

INGREDIENTS1 3/4 cup plain flour1/4 tsp salt2/3 cup caster sugar140 g preserved ginger, chopped1 egg 185 g unsalted butter60 g whole almonds

METHOD 1. Sift flour and salt, add sugar and

chopped ginger.

2. Mix in the beaten egg, reserving one teaspoon for glazing. Melt butter over gentle heat, allow to cool slightly. Add butter to flour mixture. Mix well, using hands to put together.

3. To blanch almonds: place them in boiling water for one minute and then strip the skins off.

4. Press mixture into greased 22 centimetre round tin. Brush top with egg glaze. Arrange almonds decoratively.

5. Bake in moderate oven (180ºC fan forced) for 30-35 minutes or until cake is cooked (golden colour and firm to touch). Allow to cool in tin.

We hope that you enjoy Maggie’s recipe and, if you’d like to use her branded version of the products mentioned, you can find them in your local supermarket, or by visiting MaggieBeer.com.au.

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DEaLs aND DIsCOUNTs

Have some fun without the expensive price tag with these 10 fantastic deals and discounts on entertainment, dining, activities, motoring, travel, accommodation and health.

dealS and diScountS

EntertainmentTreat yourself to a night at the ballet and save up to 10 per cent off adult prices for selected performances. www.australianballet.com.au

Dining If you are visiting Airlie Beach, visit Sorrento Restaurant to receive 10 per cent off your meal. www.sorrentowhitsunday.com

activities During Victorian Seniors Week, take a ride on Puffing Billy and save up to 50 per cent off the usual concession price. www.puffingbilly.com.au

If you find yourself near the Sunshine Coast, visit the Australia Zoo to receive a 20 per cent discount on the adult ticket price. www.australiazoo.com.au

MotoringSave 5 per cent off your car insurance when you get an online quote with APIA. www.apia.com.au

TravelLet your inner adventurer out and receive a 10 per cent discount when you book one of the following through Aurora Expeditions: the Kimberley Coast, Antarctica or Arctic expeditions. www.auroraexpeditions.com.au

Enjoy a river-front holiday at 20 per cent off the regular rate at one of the Murray River’s most secluded, private and pristine locations when you book with Murray Darling River Holidays. www.murraydarlingriverholidays.com

accommodationCrowne Plaza Hotels and Resorts is giving 10 per cent off USA hotels for seniors. www.ihg.com

HealthShow your Seniors Card at any OPSM store in Australia to save 10 per cent on each complete pair of prescription glasses. www.opsm.com.au

TabTimer’s products can help you to remember to take your pills or remind you of other important daily tasks. Simply mention your Senior’s Card to receive a 20 per cent discount. www.tabtimer.com

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Whether seeking a career change or returning to employment, it’s critical to understand the online world. Here Heidi Holmes explains how to shine online.

do You Have a Social profile?

REMaINING RELEvaNT

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Heidi Holmes is the Managing Director of Adage.com.au, Australia’s leading job board for mature age workers.

Read Heidi’s key points to consider when Promoting Your Brand via LinkedIn.

Create a free employment profile to view job opportunities and connect with colleagues on LinkedIn.

Register for free and search for jobs with age-friendly employers who value experience and maturity at Adage.

A lot has changed within the recruitment landscape for mature job seekers since they

landed their first jobs. Positions are rarely advertised in the local newspaper these days. Instead they are now Tweeted, shared on LinkedIn or posted on various online job boards.

The job-seeking process can be a daunting and frustrating experience for anyone, regardless of age. However, educating yourself on the current recruitment ‘trends’ before you start can help to alleviate some of the uncertainty and stress.

What’s the deal with job boards?Job boards are the new online classified section of the newspaper and are generally a good starting point for job seekers. Browsing jobs can give you a feel for the opportunities currently being advertised and the salaries which employers are willing to pay.

Often mature job seekers can fall into the trap of thinking that volume is the way to go and apply for any job they think they will be able to do. The reality is, when employers receive 500 applications for a role, they are overwhelmed by choice, so they will usually select the person who ticks 100 per cent of the boxes – not 80 per cent.

Tip: Be selective with the roles for which you apply as it could be a process which takes longer than you think. Tailor your covering letter and CV to each application, ensuring that you use similar language from the job advertisement. You could also try industry-specific or mature-friendly job boards, including my site, Adage, as well as the larger ones such as Seek. And finally, don’t take it personally if you don’t get a response – you rarely do unless you proceed to the interview stage.

The need for a social presenceWe all know how important personal and professional networks are in the offline world and now platforms, such as LinkedIn, have made them just as important in the online world. If you’ve been lucky enough to grab the attention of a recruiter or hiring manager through your resume, you can be sure that one of the first things they will do is ‘check you out online’. This may involve a general Google search or a more specific search on LinkedIn.

If you don’t appear it’s not a good start.

One of the most common negative stereotypes about older workers is that they aren’t tech-savvy. Unfortunately, perception is often linked to reality and if you don’t have something as simple as a LinkedIn profile, it might be enough for the recruiter to think that you are ‘out of touch’.

Getting started on LinkedInWhile there are other online tools and forums which may assist your job search, focus in the first instance on setting up a

LinkedIn profile. If you already have one, commit to reviewing it every couple of months.

There is an abundance of information online about what constitutes a successful profile but thinking of yourself as a ‘brand’ is a good place to start. What’s important to remember is that you shouldn’t find this process a daunting task. LinkedIn is a free platform (there are also paid versions) and you can update and change your profile at any time. You really can’t get it ‘wrong’. It’s an opportunity to put yourself out there again in a very safe environment, connect with past colleagues, access up-to-date, interesting content as well as the latest job opportunities.

LinkedIn is definitely not a fad. It’s here to stay, so best to jump on board and ride the wave.

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YOURLifeChoices has negotiated savings totally $110 (or more) on the products and services our loyal members tell us that they want.

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This year superRatings undertook a comprehensive analysis of over 300 superannuation products.

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australian NaturalCare is giving YOURLifeChoices members $20 off your order when you spend over $30 on its quality, australian-made vitamins.

australian NaturalCare is australia’s leading supplier of over 400 quality, australian-made vitamins, supplements and eco-friendly home products. Terms and conditions apply: Offer ends 31.11.14. Order subtotal must be over $30.00 (excl. shipping). Vitamins only. Any unused balance will be forfeited.

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When life gets busy, it can be difficult to remember those important dates; here are some key days for you to put in your diary.

diarY dateS october – december 2014

October1 October Start of Fair Trade Month: Shop fair trade this month and support local

producers in developing countries.

5 October Daylight Savings starts in NSW, VIC, SA and TAS: Don’t forget to turn your clocks forward one hour!

12-18 October Carers Week: Give thanks to the people who care for your loved ones.

16 October World Food Day: Join the global movement to end hunger.

31 October Halloween: Trick or treat! Make sure that you stock up on treats for any surprise visitors.

November1 November Movember: Grow your mo and raise awareness of important health

issues for men.

4 November Melbourne Cup: The race that stops a nation!

7 November Walk To Work Day: Leave your car at home, put your walking shoes on and pound the pavement to work today.

11 November Remembrance Day: Lest we forget.

14 November World Diabetes Day: With almost 1.1 million Australians currently diagnosed with diabetes, it’s crucial to lower your risk and raise awareness.

December1 December World AIDS Day: Show your support for people who are living with HIV

and remember those who have died.

6 December Saint Nicholas Day: Celebrate the birth of Saint Nicholas who started the tradition of hanging stockings at Christmas.

10 December Human Rights Day: The anniversary of the adoption of the Universal Declaration of Human Rights by the United Nations.

16 December Day of Reconciliation in South Africa: Today marks the end of apartheid and offers a chance to acknowledge reconciliation and unity.

DIaRY DaTEs

YOURLifeChoices Retirement Update September 201428https://seniorau.

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