Research from Deloitte and HSBC showing the situation most retirees find themselves in. Underfunded, Living too long, spiraling costs, it isn't a pretty picture but it doesn't have to be like this. Further in the course we show you how to educate yourself and use established tools to improve your lifestyle in retirement.

1. Introduction to Retirement
Module One: Most People
This presentation is part of Franklin Partners Courses for Clients
programme 2014.
It is designed to give Clients a basic understanding of the challenges
they may expect in planning for retirement.
The main sources used in this presentation are
“Dynamics of the Australian Superannuation System The next 20 years: 2013 – 2033” by Deloitte
& “The Future of Retirement” by HSBC
Full credits and contact details are at the end of this presentation.

2. There’s a basic assumption we want to introduce you to
The developed world is getting older, but
our financial system has not has not
changed at the same rate.
For example, most managed funds are
generally only able to invest in certain
high rated securities.
We believe that this will cause more and
more “BUBBLES” as massive amounts of
funds are funnelled to where they
generate the most fees with the least
amount of risk TO THE FINANCIAL
ADVISER.
Here is the nub of it, there is a basic and
entrenched corruption/conflict in the
financial planning industry

3. Ingrained Conflict
Riddle me this!
How can a financial adviser
represent your interests without
conflict when
• Their remuneration is not totally
aligned with your results
• They don’t take any losses
• The products and strategies they
can introduce you to are
determined by ratings agencies
and professional indemnity
insurers not by them.

4. To be a bit blunt, we don’t believe that the system
works for most people.
Warren Buffet encapsulated what
we believe when he said,
“you only have to do very few things
right in your life so long as you don’t
do too many things wrong”
Warren Buffet
During module one you’ll find out
some pretty disturbing figures but
don’t sweat it, as you work your
way through the course we will be
introducing you some proven ways
of achieving your retirement goals.

5. What happens to most people in retirement?
Well, according to HSBC, “The
Future of Retirement Report:
2013”
Retirement Income
Things are pretty bleak.
You can expect large falls in
initial income followed by your
independent income running
out completely about 11 years
before you die.
Women, live longer than
men, but that means even
more time on the breadline.
Income
0
25
Lower by 50%
than they thought
50
Lower
75
A Gov Benefit
Hit Zero during retirement
100

6. Where do Retirees get their income?
Deloitte’s research tells us that 81%
of Australian Retirees are currently
relying on the government for some
form of benefit.
The graph at right from HSBC’s “The
Future of Retirement” report shows
what is happening on a global basis.
Again from HSBC Australian’s expect
their retirement savings to last 11
years, although they have on average
32 years of retirement to fund.
100%
12
90%
8
Other
80%
11
Property
70%
Investments
10
4
9
12
19
11
60%
Cash
Personal Pension
Com Pension
Gov Pension
50%
15
16
40%
12
30%
20%
37
24
10%
0%
WORKING
RETIRED
Expectation and reality are a long way apart

7. Too much life, not enough savings?
Most Australians plan to retire
between 55 and 60 years of age
which creates its own problems.
This graph by Deloitte’s based on
Australian Bureau of Statistics
information shows how long a
retiree aged 65 years can expect to
live.
Remember this is average so if
you’re unlucky enough to live to 85
years you will, on average, live 11
more years.
We haven’t met anyone who has
prepared adequately for this!

8. How much savings are there really?
Average Australian Superannuation Balances
Male
Female
All
60-64 year olds
$85,000
$59,000
$77,000
65-69 year olds
$77,000
$55,000
$72,000
Source: Deloittes, ASFA amounts rounded to nearest $1,000

9. Working age people expect their savings to run out during
their retirement.
Q: Some people plan or have
retirement savings that they expect
will last for a certain time. Do you
expect your savings to last in
retirement?
Q: Imagine yourself retiring today
from all paid employment at the
normal retirement age. How many
years would you reasonably expect
to live for in retirement?
Retirement Years
11
21
Funded
Source: HSBC, The Future of Retirement 2013
Unfunded

10. It isn’t all doom and gloom!
BUT, we did want to disturb you, make you think
about things. This is module one, in course
number one.
This is also the first day of the rest of your life!
At Franklin Partners we are sure that your
future is about the actions you take NOW.
FPM insists you take responsibility for
yourself but that doesn’t mean you’re out on
your own.
Quite the opposite!
You are joining a community with a common
goal, to retire with dignity and in comfort.
But enough of FPM, you’ve some homework, you have a task, before
beginning the next module, to sit down with your significant other and
write down 5 things each that concern you about retiring.

11. Further Reading
The Future of Retirement Reports
by HSBC are very interesting
reading.
Very comprehensive and broad
research across 15 different
countries and 125,000 interviews
AND in a great easy to read format