Jacqueline Barton

The Age Pension increased, and previously frozen deeming rates rose by 0.5% last month on 20 September 2025.

The increase in the Age Pension is due to indexation and represents the most significant rise for pensioners in two years. However, some pensioners will see this increase absorbed by the rise in deeming rates.

The Age Pension increased by $29.70 a fortnight for singles and $44.80 for couples combined. This sees singles receive $1178.70 per fortnight, up from the previous $1149, while couples now receive $1777 per fortnight instead of $1732.20. The Age Pension is due to be indexed again in March 2026.

At the same time, deeming rates increased by 0.5% after being frozen at 0.25% and 2.25% since July 2020. The deeming rate is now 0.75% for singles with financial assets of less than $64,200 and $106,200 for couples. The deeming rate increased from 2.25% to 2.75% for those with financial assets above those thresholds.

The above changes also apply to recipients of Disability Support Pension and Carer Payment.

In August, National Seniors Australia estimated that some 470,000 people who currently qualify as part-rate pensioners under the income test will be impacted by the deeming rate change. Analysis by the University of Sydney’s Susan Thorp shows that about 4.5 million Australians receive an Age Pension. This equates to about 64% of Australians aged over 64. Of these, 25% will see their payments change due to deeming.

Check if this will impact you.

A recent study by leading Australian universities, Five Economic Themes That Will Dominate the Next Parliament[1] has identified five economic themes shaping the next Parliament. While these represent significant shifts, they also create exciting new opportunities for smart investors and proactive financial planners.

Emerging opportunities

New global partnerships open investment doors. Australia’s strategic shift toward “friend-shoring”, strengthening trade with trusted allies, is creating opportunities in the resources, technology, and security sectors. This presents exciting prospects for investors who position their portfolios to benefit from Australia’s enhanced relationships with key partners.

Population growth drives long-term property demand. Australia’s robust 35% population growth over two decades (versus just 13% OECD average) continues to underpin strong housing demand. While policy adjustments may moderate the pace, Australia’s attractiveness to skilled migrants remains strong. This creates ongoing opportunities, particularly in well-located areas that benefit from infrastructure investment and population growth.

Productivity innovation creates market leaders. Australia’s focus on addressing productivity challenges is driving innovation across industries, from technology adoption to workforce mobility. Companies that successfully navigate this transformation could emerge as tomorrow’s market leaders. For investors, this creates opportunities to identify and benefit from the next generation of high-performing Australian businesses.

Fiscal responsibility strengthens economic foundation. Government’s focus on fiscal sustainability and reduced reliance on commodity price volatility is building a more stable economic foundation. This approach, combined with strategic budget management, creates a more predictable environment for long-term wealth building and retirement planning.

Intergenerational planning becomes more strategic. The emphasis on sustainable intergenerational outcomes is driving innovative solutions in housing, education, and wealth transfer. This creates opportunities for families to implement more sophisticated financial strategies that help younger generations build wealth while preserving family assets.

Positioning for success

These economic shifts aren’t just policy changes – they’re wealth-creation opportunities for those who plan strategically. By understanding these trends early, you can:

• Diversify into emerging sectors before they reach mainstream recognition
• Time property investments to align with infrastructure and population growth
• Identify productivity-driven companies positioned for long-term success
• Structure investments to benefit from stable, sustainable economic policies
• Implement intergenerational wealth strategies that adapt to changing conditions

The question isn’t whether these changes will create opportunities, but how well-positioned you’ll be to capitalise on them.

Call us today to find out more.

[1] https://www.unsw.edu.au/newsroom/news/2025/03/major-economic-policy-shifts-needed-to-navigate-new-global-order-report

While the concept of retirement has evolved dramatically across generations, one thing remains constant for most of us planning our retirement – the desire to do what we want, when we want. No more alarm clocks, no more commuting and no more demanding bosses!

But what do we want more of? Time on the golf course? Unrushed holidays exploring exotic locations? Those are just the basics; however, if retirement is looming, have you thought about what will happen when you stop working? Will you have those choices?

Here are a few points to consider, and it’s not just about money.

Your wealth

When preparing to leave the workforce, some people focus so much on never facing another stressful workday that they overlook many important issues.

The first and most obvious focus should be the income needed to fund the retirement dream.

For many people, retirement will deliver them the first real block of time they have ever had completely to themselves, to spend however they please. Some may want to travel, some may have hobbies they want to immerse themselves. Others may move closer to family or make a ‘sea’ or ‘tree’ change. Some may do all these things!

To make the most of your retirement years, your nest egg must be large enough to allow you to live the life you desire. It would be a shame to have a boring and unfulfilled retirement because you discover too late that you don’t have the means to afford activities your friends enjoy.

Your health

Secondly, many people plan for life beyond work, assuming they will remain healthy and vital. This will prove true for the majority, but sadly, others might not be as vigorous as they had hoped.

Illness will mean facing additional pharmaceutical and medical expenses. You may incur extra costs from travelling with mobility issues, assuming travel is still manageable. Aged care can be costly, especially where high-level care is required.

The key point to remember here is that while you are planning for your retirement financially, you also need to focus on your well-being now to ensure your mind, body, and spirit are willing and able to fulfil your retirement hopes and dreams. Balancing both aspects is fundamental to achieving a rewarding lifestyle.

Your happiness

But what can you do if you get bored with so much free time? One option could be to return to the workforce, perhaps part-time or casual. If approaching your former employer or business partner/s is not an option, try something different. You may be able to start a micro-business depending on your skill set. All you have to do is get creative when looking at your skills and abilities!

If you are a retired teacher, there are many opportunities, including working as a private tutor, providing after-school assistance, assisting sports teams, or even thesis proofreading for university students.

If accounting is your forte, use this skill to help small businesses manage their books.

Handy with tools and enjoy fixing things? You could find yourself in demand by those in your area who are working and have no time or skills to do odd jobs themselves. Place an advertisement on your local community board, online, or do a mailbox drop to get started.

Or, what about volunteer vacationing – “voluntouring”? If you’d like a travel experience with a difference, combine it with volunteer work. Sharing your interests with others or using your skills in a new way could certainly enhance your post-work years.

There is a plethora of websites that now focus on this latest interest. Just type “voluntourism” into your favourite search engine and be prepared to be amazed.

Your identity

Many people identify themselves according to their job title or profession. For this reason, retirement can leave you feeling like a piece of you is missing. But retirement can be a terrific opportunity to give up that old identity and reinvent a new you.

You can be a grandparent, sports enthusiast, volunteer, or book club president—the sky’s the limit!

In many ways, re-inventing yourself as a retiree can be as challenging as being a success in your previous vocation. The key is to establish your priorities, set goals that work for you, and keep going until you reach them. Remember, though, to keep it fun.

Have you planned your first step?

If all this sounds exciting, don’t forget the first step is to get your retirement funding in order. Come and talk to us sooner rather than later. Once that is done, you can start looking forward to the best years of your life.

The major themes dominating markets are:

• Slowing economic growth in the developed world, primarily due to President Trump’s ongoing global tariff war, continuing geopolitical tensions, rising budget deficits and government debt.
• Investor sentiment has recovered from depressed levels in April to euphoric levels as investors anticipate positive outcomes to tariff negotiations and interest rate cuts.
• Global market share indexes are expected to reflect increased earnings from stocks other than the Mag7 in late 2025 and 2026.
• Opportunities continue away from the US, e.g. Australia, Europe, the UK, Japan and emerging markets.

The year so far

The 3 months to 31 July were a complete contrast to the negative returns on all share indexes reported for the 3 months to 30 April. Share market sentiment believes that the US administration will continue negotiating tariffs, and interest rates will fall in the developed world.  Europe and the UK are benefitting from increased stimulus for defence and infrastructure spending.

Returns of major asset classes to 31 July 2025

 Returns for all asset classes were positive for the 3 months to 31 July. The returns for 12 months were very strong across all asset classes. The returns for global shares over 3 years were exceptional, driven by US equities that have provided unprecedented returns of over 20% each year. Over one year, Australian bonds outperformed both global bonds (hedged) and the cash rate.

Outlook for economies and markets

The IMF produced the following forecasts last month in its World Economic Update.

 The forecasts show very anemic world growth for 2026. Nevertheless, advanced economies led by the US have slowed from 2023/4 levels. The growth in the Eurozone varies considerably by country. Australia is expected to improve modestly to 2.2% and Emerging Markets are anticipated to show the highest growth, led by India and China.

However, the International Monetary Fund points out that the risks to growth are skewed to the downside, with the level of US tariffs being the primary concern.

The issue facing investors is that valuations for global share markets are at highly elevated levels, with the Australian and the US being at the highest levels in 20 years. While earnings growth continues to be strong, the impact of the US tariffs in the second half of 2025 will challenge markets.

Conclusion

Our preferred approach in times of uncertainty remains:

• Continue to be diversified by asset classes.
• Incorporate active management.
• Bonds and high-quality credit for income and stability.
• Regular rebalancing to maintain target allocations.