Planning to be Healthy, Wealthy and Secure

As we close out the end of the financial year, we examine what the macro changes in healthcare mean for you and how to tighten your defence against scammers. Our CIO, Daniel Rolley, also shares his key takeaway from The Investment Leaders Forum.

Balancing the books for longer lives

A new report, Future of Healthcare, produced by Citi and Oxford University, reveals that the average person born today will live almost 30 years longer than someone born in 1950. They have called this one of humanity’s greatest achievements.

Unlike in past eras, when there was only a short period of life after retirement age, people today live healthy and active lives for many years and even decades longer than in generations gone by.

This shift represents serious challenges for society and governments and directly impacts individuals’ planning for their future health and wealth.

The global healthcare system is facing unprecedented pressure due to a rapidly aging population, a sharp rise in obesity and a predicted increase in dementia, which is storing up future pain and leading to potentially unsustainable costs.

Whether you’re retired, considering the transition or have years of work ahead of you, the macro trends in healthcare and the aging population can impact your decisions today and in the future.

The report makes several key findings:

In the past 30 years, healthcare costs as a proportion of GDP have more than doubled in many advanced economies.
There has been a significant rise in population obesity and an expected rapid increase in dementia.
Despite massive advances over the decades, life expectancy growth in many Western countries has stalled over the past 15 years and worsened during the pandemic.
The Oxford Prescription Report calls for a significant reorganisation of healthcare delivery, drug development and better use of digital technologies.

What do these macro trends mean for you?

Here are some tips and ideas for Australians approaching or planning for retirement:

Plan to fund a longer life

All being well, it is wise to plan for longer active lives, which can mean extended lifestyle costs and potentially higher healthcare costs.

Review your financial objectives

Review your retirement savings and consider seeking advice from a financial planner to double-check you have what you need to live the life you want.

Consider healthcare and technology investments

The demand for aged care and healthcare – delivered via digital innovations – is forecast to rise over the coming years and decades. Consider talking to your adviser about investments that benefit from these trends.

Work towards quality of life, not just quantity

Invest in your health and well-being through preventative measures such as regular exercise, healthy eating, and proactive medical tests and treatments to maximise your later years.

Consider your estate planning

If, touch wood, we and our families will all be living longer, it makes sense to consider the timing and structure of estate management over a longer period — for example, when it comes to assisting the next generation, wealth transfer strategies or family trusts.

Retirement lifestyle and costs

The aging population will drive up healthcare system costs. As with any life stage, planning for the lifestyle you aspire to and how best to provide for that financially is essential.

While we often shy away from discussing aging, there’s no reason why the second half of our lives can’t be as good or better than the first. Planning for this touches on all aspects of life, including living arrangements, investments, family dynamics, career ambitions, travel plans, insurance, health, and hobbies.

There are endless opportunities to define and create the next stage, and now’s the time for long-term strategic thinking. At Financial Decisions, we specialise in pre- and post-retirement financial planning, estate planning, and investments and are here to help you assess, prepare, or implement your plans.

Introducing a new app to protect you from fraud

As we covered in our March Exchange, the rise of artificial intelligence (AI) continues to transform our daily lives, work and business. With new technology comes new ways for criminals to scam us out of our money through elaborate scams, and chances are, you or someone you know will be a target.

According to research by Macquarie Bank, more than 1 in 9 Australians were affected by personal fraud in 2020, and this number is on the rise. Last year, according to the ACCC’s Targeting Scams report, Australians lost over $2.7 billion to scams, while scam reports increased over 18%.

Common scams to look out for include phishing (fake links in emails and messages), investment fraud, romance fraud, online shopping scams, identity fraud and invoice fraud. Scammers impersonate trusted organisations such as banks, businesses, or government agencies.

You may have heard of the ‘collect your parcel’ or ‘Hi Mum and Dad’ scams, where you’ll be contacted via phone or email by a ‘family member’ with an urgent request to take action by clicking on a link in the email or SMS. Now, there are voice impersonation scams where you receive a call or message that sounds like it’s from a loved one using a cloned version of their voice. The mind boggles!

It is essential to remain vigilant of these scams and take steps to protect yourself from potential fraud attempts. If you have any concerns or suspect fraudulent activity, contact your financial institution or report it to the relevant authorities.

For those who bank with Macquarie, the Authentication App will go live on 30 September. You can use it to verify identity of the caller from Macquarie, approve transactions, and update settings. This will replace the SMS codes currently sent out for transactions and provide a greater level of security.

Why use the Macquarie Authenticator App

Easier to use: You only need to tap a button to approve an action on the account rather than typing numbers from a security code SMS.
You’re in control: Review transaction details like account, payee, and payment details upfront so you can authorise transactions and account changes before they happen and know exactly what you’re approving.
Extra security: The app uses multi-factor authentication, providing heightened security. SMS has become less secure as scammers have found ways to port client SIM cards. Also, an SMS has character limitations, while the alert from the app provides a concise summary.
Makes it harder for hackers: The app sends information to your physical mobile device. There is currently no way for someone to clone your physical device and redirect your security information, making it harder for hackers, especially if they port your mobile number.
Works where you are: The app travels with you. It works even without a mobile or internet connection – helping keep you safe 24/7, regardless of location.

Next step: Download and activate the app

We recommend that you download the Macquarie Authenticator App on your phone and/or tablet now to set it up and ensure it works well before September. To download the app from Apple Store or Google Play, head here: https://www.macquarie.com.au/digital-banking/macquarie-authenticator.html

Macquarie has some helpful resources to guide you through the process:

Authenticator setup video
Step-by-step guide on setting up Macquarie Authenticator
Client authorisation using Macquarie Authenticator (including video instruction)

Of course, if you need help setting up the app, just contact your Financial Decisions Adviser; we’d be happy to help.

However, if you need to update your contact information with Macquarie Bank, please call 1800 806 310 from 9am – 5pm AEST. If you would like help to be prepared for the call, please contact your Financial Decisions Adviser.

We will also contact impacted clients again before September.

CIO Daniel Rolley presents at The Investment Leaders Forum

Our Chief Investment Officer, Daniel Rolley, on right above, was recently invited to present at The Investment Leaders Forum in Byron Bay. This forum brings together financial advisers and asset consultants to discuss the biggest challenges and opportunities emerging in global investment markets.

Daniel joined an expert panel on ‘Client First: Engagement and Satisfaction Across Time’. One of his key takeaways from discussions with his peers was the unique advantage Financial Decisions offered by combining an in-house investment team with internally managed discretionary accounts (MDAs).

The in-house team enables direct control and personalisation of clients’ investment strategies. At the same time, the MDAs provide access to a diversified range of assets and investment strategies while outsourcing day-to-day decisions to a professional manager.

For our clients, this synergy strikes a balance between hands-on control, diversified portfolios and expert oversight. This approach is proven by the strong outcomes we are generating for our clients.

Exchange – June 2024