University Personal Finance Client Report: Retirement Strategies

This report analyzes the financial situation of Mr. Max and Mrs. Jenny, focusing on their decision to draw down on superannuation savings for retirement. It assesses the implications of their current financial standing, including insufficient funds for a comfortable lifestyle and the risks associated with early retirement. The report evaluates the couple's superannuation, potential investment returns, and the impact of inflation and tax rates. It then proposes several alternative strategies to improve their retirement plan, such as utilizing a health savings account, obtaining an annuity, diversifying investments in a risky portfolio, and applying for an age pension. The report uses mathematical illustrations to demonstrate the potential outcomes of their financial choices and emphasizes the need for careful planning to ensure a secure retirement. The analysis highlights the complexities of retirement planning and provides recommendations for mitigating financial risks.