Retirement is getting tougher for Australians, with 38 per cent struggling financially

I suppose most here invest so they don't end up being another sad statistic come retirement.

I have always believed that investing in our financial futures (if you have the ability to) is essential if we want any hope of a great retirement. It's not optional.

Retirees are finding it harder to make ends meet with higher debt (thenewdaily.com.au)

 

Inheritance if your lucky

 

Ha! Should be a wealth creation strategy, the LPTI ( lobby parents to invest) strategy!

Fast forward 50 years. Mum, Dad here's some coffee.

Just don't forget the strychnine

Warped sense of humour I know

 

How about three of them and in line for a fourth and I wonder whose estate that could be?

 

Even with 5 mill cash, 50k per year on term deposit not much. No wonder everone buying property.

 

"Retirees are also carrying much more debt, with half having debt the equivalent of half their asset base."

One would wonder why retirees are carrying more debt. PCers investing in property over the years would have paid off a good chunk of the debt, even with IO loans provided they have CG over the years?

“With the sharemarket having lost $200 billion in the coronavirus scare in the last couple of weeks, there are even more people worried about their retirements.”

“You only find out who is swimming naked when the tide goes out." How much has your property lost during Covid-19...?

 

Scratching my head trying to figure out what you mean. ..

 

Explained here:

Listed Investment Companies (LICs) 2020 [LIC & LIT]

 

I wonder inheritance will be a thing of the past???

I don’t think millennials will get any inheritance

https://blog.massmutual.com/post/why-millennials-should-not-rely-on-an-inheritance

 

I wonder if it's any different between cultural backgrounds? Most of my family and their peer aged friends in our cultural community all have multiple assets in real estate and plan to leave a big chunk to their kids. I feel other cultures in Australia seem to have different mindsets when it comes to assets and for many renting is a way of life.

 

Thinking loads of migrants work hard, save, end up well off.....
Is it the third generation that becomes slackers? Maybe or maybe not. That may come down to culture in a large way.

 

I have found quite few numbers interesting, the much higher debt in comparison to assets, growing by 5 times so 500% yet balance increasing by 140%.


But what I disagree with... is this comment:


It is not the ONLY WAY, it is one of the ways, other ways is for each individual to do something about it, members too can contribute not just their employers.

 

Yeah it's interesting. I think it also down to expectations. Many migrants come from more challenging countries. So when they see the opportunities available here, many just throw themselves at it.

 

Until they get rich. The third generation thing is 100% true. Saw the same thing happen in my family too.

 

I think this is the big problem for many. Those relying solely on the pension cannot afford rent. We ended up buying a house for my husbands father to live in because he was literally homeless. There was no way he could afford to rent a place when his only income was the pension. I think ‘most’ retirees who own their home outright would be ok financially most of the time.

 

Absolutely, pensioners who are renting are doubly screwed. Most basically would be struggling massively unless they had some kind of family assistance. Its quite sad actually.

 

Growing old is mandatory but investing for one’s future is optional.

 

We have a lot more debt in retirement than when we were working.

Such low interest rates and I/O make it a no-brainer!!!

 

I am no economist to know whether increased Super savings limit and what, if only ALL did 10% mandatory savings from their pay and not into retirement but investment into their future or PPOR, I think the whole country would be well off?
But rules can be changed no? I think Singapore allows access to Super to access PPOR housing.
Also I meant Super member contributions are alternative ways to boost Super, I am not suggesting we should do it I am just pointing out the article stated there's only one way for Employer Super contribution, but it's not.

 

I might be either agreeing with you or misunderstanding you; it's too late for me to tell. There's supposedly a threshold where if they raise the rate of super too high, the trade-off is a lower quality of life today and slower wage growth in exchange for an unnecessarily "lavish" retirement. So the case is that 9.5% is perfectly fine, because most people also save outside of super, or do extra contributions like you said, or buy their own home, etc etc.