Finance

Critical superannuation reminder facing million of Aussie retirees: ‘People don’t know’

Published

6 months ago

November 15, 2025

Critical superannuation reminder facing million of Aussie retirees: ‘People don’t know’

Terry Vogiatzis, Founder and Director of Omura Wealth Advisers, was recently named advisor of the year. (Source: LinkedIn/Getty)

More and more Australians are entering retirement and facing big questions about how they handle – and ultimately pass on – their money. Older Australians are being urged to understand all the options available to them to make sure they’re not paying unnecessary tax and not forgetting to do one crucial thing when it comes to their superannuation.

The country is facing the mother of all wealth transfers in the years ahead, as aging Boomers are expected to pass on trillions of dollars in wealth to their children. But the best way to do that can be complex, and there are certain superannuation pitfalls retirees should make sure they avoid.

It’s not fun to think about your impending demise, so it’s not uncommon for people to neglect their estate planning, says Terry Vogiatzis, Founder and Director of Omura Wealth Advisers.

One thing that is often overlooked is super assets which can cause issues later on because superannuation benefits are treated differently from other assets in a deceased estate, which can have significant tax implications for beneficiaries, Vogiatzis explained to Yahoo Finance.

“A lot of people don’t know,” he said.

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Unlike cash, property and your regular share portfolio which can be assigned to go to someone in a will, your super requires a “direct nomination” which also supersedes a will. Without that direction nomination, things can potentially get a bit messy.

“People could put their hand up [to make a claim on it]. And it also creates further complexities from an administration perspective,” Vogiatzis said.

But before it gets to that point, it seriously pays to think about the most tax effective way to pass on your super, which for many Australians will increasingly be a majority of their wealth.

You can nominate your super balance to someone who is considered a dependent, but there is also the definition of a dependent under tax law “which dictates whether or not they’re going to pay tax on the benefit,” Vogiatzis said.

“An adult child is a super dependent, which means they can receive a benefit, but they’re not tax dependent, so they’re going to pay tax on the benefit.

“So you may want to consider nominating your spouse, giving your adult child your non super benefits.”

As founder of Pivot Wealth and Yahoo Finance contributor Ben Nash has previously written for this masthead, in many cases, a big chunk of inheritances is lost to tax, poor planning, or mistakes that could have easily been avoided.

If a parent passes on money from their super and their child is not classified as a dependent under the tax rules, they could pay up to 32 per cent on the balance of the super fund.

For example, if they inherit $500,000 in superannuation money, you could be paying tax of up to $160,000.

In most cases, one spouse is going to nominate everything to the other spouse in the event of their passing. At that point, there is a “big tax saving that people forget about,” Vogiatzis said.

“If that person passes away with their super, their children will pay tax on it,” he continued. “[But] in most cases, they’re over 65 which means they can just withdraw everything.”

They can give their children a cash gift which won’t be taxed. “It can an save you hundreds of thousands of dollars… A lot of people don’t know about it.”

A huge wealth transfer from old to young is slated to take place in the years ahead. (Source: Getty) · Getty Images

It can be a tricky thing to time, however. While super is in the pension phase there’s no tax payable on the earning of the fund (below $1.9 million) but if you cash it out, then the earnings on that money are now in a taxable environment.

“You don’t want to cash out too early, but that is a strategy,” Vogiatzis said.

The Productivity Commission previously estimated that $3.5 trillion would be passed on from Aussies aged 60 and over by 2050. More recent JBWere figures put the figure at $5.4 trillion over the next 20 years. A good chuck on that will come from superannuation balances, but exactly how it’s passed on will determine how much the ATO ultimately rakes back in.

Financial advisors are licking their lips as more Australians face these difficult decisions, with a recent report by the Super Members Council finding the “general complexity” of the system is leading to “decision paralysis” among retirees.

It comes as the number of retirees in the country is set to double, jumping to about 2.8 million people in the next decade. About 10 years ago, 150,000 people would retire each year. But soon this number will jump to 300,000 per year, a trend described as the “silver tsunami”.

Meanwhile Finder research found 41 per cent of Aussies – equivalent to 8.8 million people – expected to receive an inheritance.

One in 10 said they were depending on an inheritance to achieve major financial goals like buying a house or retiring, while one in five said it will significantly improve their financial standing but they weren’t solely dependent on it.

Unlike other countries like the UK and US, Australia has no federal inheritance tax.

There have been growing calls to introduce such a regime, with the Australia Institute in August calling for an inheritance tax with the group’s senior economist telling Yahoo Finance it could help bring in as much as $10 billion a year for government services.

However a poll of more than 4,400 Yahoo Finance readers found nearly three quarters of respondents were totally against bringing back any form of inheritance tax.

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Finance

What is Considered a Good Dividend Stock? 2 Financial Stocks That Fit the Bill

Published

11 hours ago

May 9, 2026

Press Room

What is Considered a Good Dividend Stock? 2 Financial Stocks That Fit the Bill

Source: Getty Images

Written by Jitendra Parashar at The Motley Fool Canada

Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.

That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.

Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.

AGF Management stock continues to reward shareholders

AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.

Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.

One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.

In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.

AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.

TD Bank stock remains a dependable dividend giant

Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.

Following a 70% jump over the last year, TD stock currently trades at $148.14 per share and carries a massive market cap of $247 billion. It’s also continuing to provide investors with a quarterly dividend yield of 3%.

TD’s latest results show why it remains a dependable dividend stock. In the February 2026 quarter, the bank’s reported net income jumped 45% YoY to $4 billion, while adjusted earnings rose 16% to a record $4.2 billion.

Similarly, the bank’s Canadian personal and commercial banking segment delivered record revenue and earnings with the help of higher loan and deposit volumes. Meanwhile, its wealth management and insurance business also posted record earnings, while wholesale banking benefited from strong trading and fee income growth.

Notably, TD ended the quarter with a strong Common Equity Tier 1 capital ratio of 14.5%, giving it a solid capital cushion. While the bank continues to spend on U.S. anti-money-laundering remediation and control improvements, its strong earnings base, large customer network, and diversified operations continue to support its dividends.

The post What is Considered a Good Dividend Stock? 2 Financial Stocks That Fit the Bill appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

2026

Finance

UK watchdog says car finance legal challenge hearing unlikely before October

Published

23 hours ago

May 8, 2026

Press Room

Britain’s financial watchdog said on Friday a tribunal hearing on ‌legal challenges to its compensation scheme for mis-sold car loans was unlikely before October, and told lenders to prepare for a possibility that the scheme could be scrapped entirely.

Finance

Martha Aguirre, former El Paso ISD interim superintendent, resigns as CFO as district finds ‘key financial challenges’

Published

1 day ago

May 8, 2026

Press Room

Martha Aguirre, former El Paso ISD interim superintendent, resigns as CFO as district finds ‘key financial challenges’

El Paso Independent School District Chief Financial Officer Martha Aguirre, who served as interim superintendent last year, resigned this week as the district said it had discovered “key financial challenges.”

The district issued a news release late Thursday afternoon that lacked details but indicated that a recent review had raised questions about the district’s fund balances, a key indicator of financial health.

“Through this process, key financial challenges were identified that must be addressed prior to closing out the 2025-26 school year including a current budget shortfall that is being actively addressed ahead of the district’s final financial presentation to the Board of Trustees in June,” the news release said.

A CFO is charged with developing a school district’s budget and overseeing its finance department. The EPISD Board of Trustees must adopt a budget for the 2026-27 school year by the end of the fiscal year June 30. The operating budget for the current school year is $547 million.

EPISD Deputy Superintendent David Bates will oversee the budget while the district searches for an interim and permanent CFO, district officials said in a statement.

EPISD Board President Leah Hanany said trustees were notified about Aguirre’s resignation this week. She said the district plans to give the public more information on the current year’s budget during a board meeting later this month.

“The board was also notified of a potential budget shortfall for the 2025 budget, but we don’t have final numbers yet. My understanding is that we are still primed to pass a balanced budget for fiscal year 2026-27 in June,” Hanany said in a statement.

Aguirre could not be reached for comment. EPISD’s CFO makes $148,200 to $209,900 a year, according to the district’s administrative pay plan.

She served as EPISD’s interim superintendent from June to December 2025 after the district’s former superintendent, Diana Sayavedra, resigned under pressure from the board. She returned to her position as CFO when Brian Lusk was hired as EPISD’s new permanent superintendent.

Aguirre’s resignation comes amid an uncertain budget season after a state funding calculation error tied to school property tax breaks caused EPISD to lose out on $17 million in projected revenue. In late April, EPISD officials estimated it would cause the district’s spending to exceed its revenue next year by $10 million.

The district is also considering calling for a bond election in November to upgrade its aging campuses as part of the larger 2024 Destination District Redesign initiative to close schools and improve the ones that remain open.

El Paso Teachers’ Association President Norma De La Rosa said Aguirre’s departure was unexpected.

“We’re right in the middle of the committee meetings for a possible bond and getting ready to get that budget to the June board meeting for next school year. So, to say that I’m highly surprised is an understatement,” De La Rosa told El Paso Matters.

Aguirre started working with the district in 1996 as a general clerk, according to a video published by the district.