Thread: Pension Age may move to 70

Originally Posted by Mick_Marsh

Slowboat for PM.
Mr. Slowboat, what is your policy on keeping the elderly employed until 70?
If you had the answer to that, you'd be PM for a long time and probably pick up a few Nobel prizes along the way.

I've recently become unemployed. I'm not 55 yet. I work in a service industry that services lots of industry including manufacturing. Over the years it has become increasingly harder to get a job. There are no projects out there in Australia and it looks as though tougher times are yet to come.

I would love to work until I am 70+ but, sadly, I don't see it happening.

I didn't say I had the answer to staying employed till retirement LOL but that I think should be the focus for our future governments. I have always said the best workforce is to have a mix of young, middle aged and senior aged workers to keep the intellectual property at its best so it can be passed down but most employers like to just keep rolling over younger people so I think the job at hand is to change the employment mentality of most companies.
Me personally I would love to retire at an early age as I have lots of other intrests I can persue as I don't want to work till 70 but I am guessing other than tattslotto I will be or a long term unemployed person.
JMHO.

I just love these think tanks and the wonderful new ideas they have for making us low life work harder for longer.
Much debate recently in WA of doing away with penalty rates for those in hospitality and shop workers forced to work on the days they used to have off because of the governments pandering to Woollies and Coles for extra hours.
Then there's this little beauty (which won't affect me because I'm already retired) which doesn't take into account we don't all sit on our fat backsides dreaming up ways to convince others to do more for less for longer.
What about those that do physical jobs or are out in all weathers at all hours in order for the fat backsides to have it easy?
I won't even mention the think tank loonies who dream up new ways for govs to get more revenue out of us on the roads....who were the tossers who thought up "drop 5 to save lives"? Absolute piffle.
I bet none of these think tank turkeys are on the breadline or getting anything like the average wage or having to do unsociable hours.
Their retirement will be well before 70 I bet and even if it wasn't, I'm sure most of us could manage a bit longer doing nothing productive at their wage rates.
AlanH.

G'day All,

I'm jumping back in on this one. Some interesting commentary and some great points bought up. One thing I guess to understand, is that something has to be done or changed. If anyone read my comments earlier, by around 2020 there will be 2 workers for every 1 retiree as opposed to the 1960's where there was 7-8 workers for every retiree. If you are looking at those who will be relying on the aged pension, wheres the $$$ going to come from?

So I guess one question that comes to mind, regardless of the "retirement" age is who do you think is responsible for funding your retirement. Is it the government or is it you? Are you relying on being self funded or is it going to be the aged pension? Also take my comments in the context of the average person who has been able to work, contribute, buy a house, having $$ contributed to their super by way of their employer, paid taxes etc.

What level of control do you think you have over it? None or 100% control? Due to the nature of my profession I am over run with stats and facts when it comes to issues related to retirement. Let's assume that it is raised to 70, are any of these current stats going to change?

• · Figures fluctuate but between 92-97% of retirees will retire on $37k or less, with 70% on $16,000 or less.

• · A typical retiree has a small amount of super savings, owns a home without a mortgage, relies on the Age Pension and lives a modest lifestyle.

• · 76 % of all retirees rely on some kind of government pension.

• · Modest Lifestyle for a couple around $33k, $56K for a comfortable retirement.
• Aside from health, the two top concerns of people heading towards retirement are relying on government pension and financial worries.

· The Citibank Retirement Index found that the people most confident when it came to retirement tend to be tertiary-educated and, during their working lives, many would have held white collar positions. The major feature that sets these Australians apart from their peers though, is their confidence in retirement. It’s the self-assurance that comes with financial security.

These people made long term plans for their post-work days, with 78% starting to save and invest as many as 20 years out from retirement, giving them a significant head start. These are the retirees who are seeing their financial plans come to fruition. They make fewer spending cutbacks, are more reliant on their own financial resources – and are more likely to live the retirement dream.

On the other end of the scale is another section of people, who approach retirement with an unsettling blend of regret and resignation. Regret that they didn’t put money away earlier, and resignation that they are powerless to improve their circumstances. Sadly, this is the majority of people.

· More than one in five in this section, aged 55+ haven’t begun saving for retirement yet. An astounding 67% of them either already rely on the age pension, or intend doing so. Even more disturbing, two in five simply cannot name a secondary source of income other than the government pension.

Quality of life in retirement is strongly linked to the quality of the financial plans we make throughout our lives. Sadly, too many people reaching retirement age, realise their plans were either insufficient or were made too late. Most were and are DIY.

So, a couple of things. I'd be highly surprised if the retirement age to be able to access either aged pension or super was raised to 70. In many respects due to some of the comments raised here IE health, type of occupation and so forth. However that still doesn't change some of the facts listed here. Taking off my adviser hat, my retirement and income I expect to generate at that point of time is in my control. I would hate to think that I had to rely on any sort of aged pension/ government benefit.

I appreciate some people will have to due to circumstance but if you are a fit, able, capable person who has had ( assume age 65 for retirement) 40-45 yrs in the work force, you have had plenty of time to make sure you aren't one of the stats above. Even 10 yrs out from retirement one can make a difference, we help clients not only improve their circumstances but smash it out of the park. Other people, we do what we can dependent on time frames.

Two things to think of...“He who fails to plan is planning to fail”
Winston Churchill and another quote "Time is the greatest power in the universe when it comes to investments and creating wealth".

My general advice is that if you have concerns with these sort of issues is to seek out a professional. Don't rely on something you read on the net, or what your mates mate said. You wouldn't do that with your personal health so don't do it with your financial health,

Regards

Stevo





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Good question re funding retirement. Already the Govt pays out more in welfare than it takes in the form of personal income tax. The money just isn't going to be there for taxpayers to continue to fund an increasing number of retirees.

So where's the money going to come from? Superannuation looks like a good start, but for many it just isn't going to be near enough.

For those faced with finding other options, I can see the family home helping to fund a lot of retirements in the future. Allowing retirees to downsize, and invest the proceeds without an "assets test" hit might be a way of sharing the costs between Government and retiree. Either way, I'm not sure the next generation will be happy about watching their "inheritance" slowly disappearing

IMO one of the things that will happen in the near future regarding pensions and also cost of real estate will be that in a house (large if they have the money) will live 2 or 3 generations.
Most probably the house will be own by the old ones, and the young will live there as well because they will be unable to have their own home.
Therefore generations will help each other.
That it is what happens in many countries in the world.

Originally Posted by Firefish

. Either way, I'm not sure the next generation will be happy about watching their "inheritance" slowly disappearing

I am nearly 40. My parents are self funded retirees. I don't actually expect any inheritance, and if some does come my way I suspect it won't be for another 20 years or more (longevity runs in my Mother's family, she is 73 but could go to 100).

Originally Posted by Chucaro

IMO one of the things that will happen in the near future regarding pensions and also cost of real estate will be that in a house (large if they have the money) will live 2 or 3 generations.
Most probably the house will be own by the old ones, and the young will live there as well because they will be unable to have their own home.
Therefore generations will help each other.
That it is what happens in many countries in the world.

And the oldies will buy a 4X4, etc and caravan or motorhome and head off to see Australia while the extended family lives in the bighouse and the oldies can come back to their granny flats.

OMG where are those whingers about the "Grey Nomads" on the roads beetling about? I much prefer the acronym "BBONFA" - Baby Boomers of No Fixed Address.

Bob

Someone finally speaking some sense?

But a spokeswoman for Treasurer Joe Hockey said the government had no plans to increase the pension age.

''We have no plans to change the age,'' the spokeswoman said, adding that the commission was ''an adviser to government, it's not the government'.'
Unions have already rejected the call with ACTU president Ged Kearney saying while life expectancy may have risen, the ability of Australians to continue to work in physically demanding jobs had not risen with it.
''How can construction workers be expected to haul concrete around a work site or a childcare worker keep up with a room full of kids until they're 70?'' Ms Kearney said.
''If the Government wants to reduce budget pressures as the population ages, it should strengthen the superannuation system rather than raise the pension age.
''A strong superannuation system lets ordinary workers retire with security and quality of life and takes pressure off the pension system.''
Ms Kearney said the government should reduce superannuation tax concessions that disproportionately benefit high-income earners and move as quickly as possible to lift the compulsory superannuation contribution to 12 per cent


Read more: No plans to raise pension age further, says Coalition