Roush and Sita are age 65 and 67 respectively. Sita's health is rapidly deteriorating and will need to move to an Age Care Facility within the next 6-12 months.

Sita has early onset dementia and first diagnosed 5 years ago. Fortunately, she had personal risk insurance in her superannuation that was paid because of her permanent incapacitation. Roush left his employment at that time to care for Sita full-time. Consequently, their financial resources have been significantly depleted, but they are fortunate to have no debt. Given the stress on their personal situation, they have simply been drawing down Sita's superannuation as required to fund their living costs.

When Sita moves into an Aged Care facility, Roush plans to return to the workforce, expecting to earn $82,000pa full-time until age 72 and his own living expenses will be $50,000 per annum.

Sita has had an Aged Care Assessment Team (ACAT) assessment confirming her need to relocate to an aged care facility. After some research, Roush has identified a suitable aged care facility, close to home so he can visit Sita daily. However, he is concerned as the entry cost (Residential Accommodation Deposit) is $450,000.

Their assets are

• Home $950,000
• Car $35,000
• Contents $15,000
• Savings $24,000
• Roush's Cbus Super balance $155,000
• Sita's HOSTPLUS Super balance $489,000

Their objectives and concerns are;

• Sita moving into age care and the costs
• Roush would like to remain in the family home
• Is Roush able to retire at age 72 with a net retirement income of $50,000 per annum in today's dollars.

Assessment 2 - Group Assignment - Statement of Advice

Assume 5 years has passed. Roush has retired age 70. Unfortunately, Sita passed away not long ago so staying in the home was no longer necessary. Roush is moving into a smaller townhouse to be closer to his daughter and grandchildren on the other side of town. Roush has $200,000 left over from the changeover.

Roush would like advice on generating a retirement income stream ($50,000 per annum) and Age Pension eligibility.

He is also wondering if he should switch to the superannuation fund that Sita was invested with as it seemed to perform better over time compared to his.

His assets are

• Townhouse $700,000
• Car $35,000
• Contents $15,000
• Savings $204,000
• Roush's CbusSuper balance $332,000 (today's dollars)

Requirements:

Review theClient profile. Critically assess Roush's situation and highlight the specific issues relating to his situation from a Retirement Income Stream and Age Pension perspective.

Discuss the key strategies that you consider relevant for this client with your group members.

Answer rating: 100% (QA)

Client Profile Assessment 1 Retirement Income Stream Roushs primary objective is to generate a retirement income stream of 50000 per annum in todays dollars He is currently 70 years old and has a limi... View the full answer