Friends With Money

From October, card surcharges will become a thing of the past. But while the change promises savings for cardholders, it could have ripple effects beyond the checkout.
On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Adele Eliseo, founder of The Champagne Mile, to explain what's changing, who's likely to benefit and why credit cardholders need to pay close attention.
00:00 Introduction
01:34 What happens to card surcharges from October?
03:42 Why are card surcharges being banned?
04:40 How much are consumers likely to save?
05:32 The impact on rewards credit cards
07:03 How banks are already changing rewards programs
08:27 What rewards card holders should do now
10:10 Conclusion
#friendswithmoney #tomwatson #adeleeliseo #creditcardsPodcast Links:
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Australia's sharemarket may be dominated by a handful of large miners and banks, but there are plenty of opportunities beyond the heavyweights.
On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jamie Hannah, deputy head of investments and capital markets at VanEck, to discuss the risks and rewards offered with small caps and mid caps.

00:00 Introduction
01:17 What are small caps and mid caps?
03:33 Behavioural differences
05:07 The mid cap sweet spot
06:18 How have small and mid caps performed?
08:36 The investment case for smaller companies
11:21 How much should investors allocate to small and mid caps?
13:19 The key risks of investing in smaller companies
15:30 Options for gaining exposure to small and mid caps
16:31 Local and international ETF opportunities
19:25 Conclusion

#friendswithmoney #tomwatson #jamiehannah #investing #smallcaps #midcapsPodcast
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💰 The retirement revolution: Why working longer isn't the real retirement plan
❓ Question:
How is retirement changing in Australia, why are so many people worried about running out of money, and what practical steps can Australians take now to improve their chances of a comfortable retirement?
✅ Answer:
According to journalist Nina Hendy, retirement is no longer a fixed destination reached at a particular age. More Australians are gradually transitioning into retirement through part-time work, flexible arrangements and second careers rather than stopping work completely. At the same time, many people are worried they won't have enough money to retire comfortably, despite having access to more retirement tools, guidance and income solutions than ever before. The challenge isn't a shortage of information. It's that many Australians remain disengaged from their superannuation until they're close to retirement.
💡 Retirement is becoming more flexible
The traditional model of working full-time until retirement age and then leaving the workforce entirely is fading. Many older Australians are reducing their hours gradually, changing careers or continuing to work beyond traditional retirement age. For some, it provides purpose and social connection. For others, it's simply a financial necessity.
💡 You may not need $1 million to retire comfortably
One of the biggest misconceptions discussed in the episode is the amount needed to retire. While many Australians believe they need more than $1 million in super, the figures cited suggest a comfortable retirement may require around $730,000 for couples and $630,000 for singles, assuming they own their home outright.
A comfortable retirement lifestyle is estimated to require annual spending of approximately $78,000 for couples and $55,000 for singles. This includes private health insurance, maintaining a car, home repairs and everyday comforts without excessive financial stress.
💡 Fear of Running Out is becoming a major retirement concern
A growing number of Australians are experiencing FORO, the Fear Of Running Out of money. The prospect of no longer earning a regular income creates anxiety for many people approaching retirement. Concerns about rising healthcare costs, unexpected expenses and increasing longevity can leave retirees reluctant to spend the money they've spent decades accumulating.
💡 New retirement income products are helping address longevity risk
Super funds are increasingly introducing retirement income products designed to provide greater certainty. These include lifetime income streams and annuity-style products that offer guaranteed ongoing payments. The aim is to reduce the risk of retirees outliving their savings while making it easier to convert accumulated super into reliable retirement income.
💡 Super funds now offer more tools and guidance
Recent regulatory changes have encouraged super funds to provide more support to members approaching retirement. Many funds now offer calculators, retirement projections and guidance that can help people better understand how long their savings may last and how super can work alongside the Age Pension.
🚩 Australians are living longer than ever
Retirement planning has become more important because Australians are living significantly longer. According to the discussion, men are living around 13 years longer than they were 50 years ago, while women are living around 11 years longer. Longer life expectancy means retirement savings may need to last for 25 to 30 years or more.
🚩 Cost-of-living pressures are fuelling retirement anxiety
Households are facing higher grocery bills, petrol prices and energy costs, leading many people to assume retirement will require significantly more money than previous generations needed. Inflation and financial uncertainty are contributing to growing concerns about retirement preparedness.
🚩 Supporting adult children is affecting retirement plans
Many parents are continuing to provide financial support to adult children for living expenses, university costs and housing deposits. While understandable, this generosity can place additional pressure on retirement savings and make it harder to build the nest egg needed for later life.
⚠️ Women continue to face bigger retirement challenges
Women frequently retire with lower super balances than men due to time spent out of the workforce raising children and caring for family members. As a result, women are more likely to report retirement-related stress and concerns about financial security in later life.
⚠️ Too many Australians still ignore their super
Despite superannuation being one of the largest assets many Australians will ever own, many people rarely review their balance, check fees or understand how their money is invested. Hendy argues that greater engagement is often the simplest and most effective way to improve retirement outcomes.
🏦 Five simple ways to boost your retirement outlook
Consolidate multiple super funds into one account to reduce fees.
Check whether your super fund is performing well.
Review fees, costs and insurance attached to your account.
Consider making additional contributions, even small amounts.
Log in every six months to ensure you're on track and receiving the correct employer contributions.

📈 Why it matters:
For many Australians, superannuation is their second-largest asset after their family home, yet it often receives far less attention than other financial decisions. As Australians live longer, retirement becomes more flexible and new retirement income products emerge, actively engaging with your super can have a significant impact on your financial future. Small actions taken today can improve confidence, increase retirement savings and help ensure greater financial freedom later in life.
🎙️ Sources:
Nina Hendy, journalist and author of The retirement revolution
Vanessa Walker, Managing Editor, Money magazine
Money magazine September cover story: The retirement revolution
⏱️ Timestamps:
00:00 – Introduction to the Retirement Revolution
00:41 – Why retirement is becoming more flexible
02:15 – Why Australians worry but don't take action
04:00 – How much money do you really need to retire?
06:12 – Understanding the Fear Of Running Out (FORO)
07:42 – New retirement income products and lifetime income solutions
09:30 – Longevity and the challenge of longer retirements
10:07 – How cost-of-living pressures are affecting retirement planning
11:15 – The most important retirement lessons for Australians
13:21 – Final takeaways and practical retirement tips

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With interest rates near their highest levels in years, many savers will be taking a fresh look at term deposits. But are they the right home for your cash?
On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Olivia McArdle, head of deposits and payments at Macquarie Bank, to unpack everything savers need to know about term deposits.

00:00 Introduction
01:25 Term deposits versus savings accounts
04:10 Are higher rates making term deposits more attractive?
05:50 How banks determine term deposit rates
08:15 Common mistakes savers make with term deposits
10:50 Can you access your money early?
13:10 Term deposits and the Financial Claims Scheme
14:20 Conclusion

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In August 2001, Australia’s first ETFs were launched. Today, more than two million Australians own them. So what can investors learn from 25 years of ETF investing?

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jonathan Shead, head of investments, Australia, at State Street Investment Management, to discuss the evolution of ETFs and the investing behaviours that matter most.

00:00 Introduction
01:11 Biggest lesson from 25 years of ETFs
03:07 How investors should approach ETFs as investments
04:35 The evolution of diversification over time
06:20 Can you own too many ETFs?
07:37 Which ETFs have been most popular with investors?
09:35 Lessons from the GFC and COVID downturns
11:37 ETF liquidity during market crises
13:47 The future: Active ETFs and tokenisation
15:36 Conclusion

#friendswithmoney #tomwatson #jonathanshead #etfs #investingPodcast

Links:
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