Time for the Baby Boomer to Pay Their Way.....

I saw the below article...and thought it would be a great discussion point....

Baby Boomer burden young Aussies should ‘utterly reject’

I have found the libs have lost the plot. Morrison, Josh and crew have not idea how to run the economy. Yesterday the Josh (treasurer) indicated people should work past 65..really?

The above article is good discussion ...about Baby Boomers...they now need to pay more tax and pay their way. Otherwise...we will have the Millenials (Gen Y) and Gen Z and possibly Gen X being one of the few generations worse off than their parents.

Before people get to emotional...I am very late Gen X on the cusp of a Baby Boomer. Something has to be done..but the current Morrison govt is lame duck when it comes to the economy and solid policies.

Thoughts??

 

"Australian households aged over 65 have 2.5 times as many assets and 16 per cent as many liabilities as those aged 25-34, according to official data."

But doesn't that make sense? Why wouldn't someone that's been earning, saving and investing for 30-40 years longer not have more assets and less liabilities. I'm surprised it's only 2.5x

 

Yes I found that confusing also....but it is about to get interesting...it looks like this dead duck govt is about to lose the next election.

Maybe they should stop the penny pinching and increase the dole by $75pw.....have the balls to tax Retirees once they have exceeded a certain income threshold. The current clowns have not foresight...all they are good for is to demonize certain groups....

 

Throw in a divorce, especially a messy one and your fortunes might take a dive .
How would the current younger generation deal with a divorce if its all tied up in one house worth 500-800k, and still with lots of debt.
Like many they would seroiusly struggle to purchase another property.

 

I haven't looked into the data much but my General opinion is if you have worked for 45yrs full time and paid tax and helped build the luxury's us younger generation use today, you should have some sort of tax relief when it comes to retiring, Going on a pension for 30yrs because you haven't done anything about it is a different story.

 

This from the article:

"The older generation is all over Facebook these days and they’re filling it up with holiday photos from yet another terrace overlooking the Pacific Ocean or the Adriatic coast."

Bloody hell! All I ever see on instagram and other social media is young ones tripping all over the globe getting ****** and having a general great time! They go multiple times per year and have travelled extensively.
Meanwhile, we have only been OS 3 times and nearly 60yrs old! Done our bit, worked hard to be able to self/part fund retirement.
Thats a sensationalist article nit picking for the sake of agenda.

These young ones will grow old also and realise what they are doing is stupid.

 

Agree the article is very one sided. But it raises some good points about being a millionaire on paper and still taking as much as one can from the Govt.

I compare my lifestyle and wealth at my age to my parents and they were doing it so tough, barely making ends meet and very little luxury's until they actually got past 50, they will end up being similar to you being self/part funded but it took doing it tough until 45 to hopefully enjoy at 65, due to assets growing. Retirees shouldn't be taxed or punished for building wealth for themselves, but draw a pension for 30yrs?? I would say that majority of any tax paid in the previous 40yr working life, you will get back over the pension phase. Therefore haven't actually paid for anything.

 

Agree, drawing a pension for 30 years is a bit of a bludge.
We will be mostly self funded.

Welfare accounts for the majority of tax paid these days. Whats that tell you?
I would hardly call the Govt dead duck on this issue.

 

I'm just going to jump in here. I haven't read the whole article yet, but really. Of course the older generations have more assets. Well, they should have more. Someone who's been saving/investing for 30 or more years SHOULD have a LOT more than those just starting out. That's just plain common sense.

But the one thing that gets forgotten in all of these articles about the plight of the younger generation is that many of us left school at the end of year 10. Some went on to higher education, most did not. I left at the end of year 10, did a one year Tafe course & joined the workforce. These days it is not uncommon for people to be first joining the workforce at age 24-25. I was getting ready to buy my first home at that age.

Now you have all these young people in the prime of their lives just starting out working. Their parents have provided for them often letting them know they are 'special', and that they don't need to get a part time job to pay their way. They are used to life being easy & if it's hard, well Mum & Dad will help them out.

So, they get their jobs & start the process of moving into adulthood, and they want to buy a home. "What! It costs THAT MUCH! OMG! Something is wrong with the world. I'm "special" my parents told me so. If I can't afford to buy a home with no savings then something is wrong. It's because the Boomers were lucky. They've stolen my future".

Sorry, this is the dialogue that goes on in my head everytime there is an article on Boomers.

 

Prolonged adolescence followed by economically un-valuable degrees, followed by resentment that they can't afford a house....

 

Never read an article by Jason (Jase) Murphy that wasn't a click bait headline followed by some negative economic diatribe.

 

I havent read the whole article either

but I agree with #pharlap,
the current generation, you see them from multiple holidays per year, their thirst for instant gratifications, credit cards/loans for holidays, mobile phone contracts with options to upgrade

add to that everyone , esepcially younger women want their 15 mins of fame, in a race to the bottom who can do the stupidest/tackiest thing for attention,
this is further compounded by people thinking a instagram influencer is a real job,

if a baby boomer who has worked their butts off their whole life, and obviously didnt take 3 holidays per year with a car loan, holiday loan, mobile phone loan, and a loan for cosmetic surgery, they deserve to plaster their facebook with once in a lifetime holidays,


what are the young people who want instant gratifciation for things they cant afford, and take out loan after loan , expecting to happen once they hit their golden years??? do they think the debts will disappear and they will be able to afford everything they want???

get a grip

 

you also read time and time again of some young under 30s person live at home or get a second job or scrimp and live like a hobo, to save up for a decent house deposit, and buy a decent first home, which statistically will lead them to a far higher chance of financial freedom,

so it can be done, everyone has choices,

when I retire and if things have gone well for me, if some person who is 50s or 60s still renting, has no investments, and has lived a financially irresponsible lifestyle, dares to say to me "oh you're so lucky to be in your position"
WATCH OUT!

ill put them in their place, they probably will never talk to me again though..

 

I know a 23 year old couple who saved a deposit within 4 years of leaving school.
Working part time while at uni, living in cheap cheap cheap accommodation. Older phones, boring old cars. EDIT - they weren’t just workaholics though. They volunteered about 7 hours per week at a local church and regularly had groups over in their small home.

They bought in a regional city near enough to commute to Sydney for work.

You might hear from the whingers but then there are the quiet achievers who set a goal and get it done just like in any generation.

my understanding is that Gen Z (of which this couple are the leading edge) are more fiscally conservative than the previous generations.

 

I am curious given the apparent outlandish success of all baby boomers why is it I continue to encounter staff at the check outs who are of my vintage (wrong side of 65 yo) and complain about their landlord? Surely they should have a mansion or two by now.

Done that but not directly. General conversation including "Have you got your Seniors Health Care Card yet?" After a response of "I understand it's means tested so I probably don't qualify" it is followed by an awkward silence.

 

Totally agree.

“Delayed Gratification” is not in their vocabulary .

 

Can’t blame the pigs with their noses in the trough when the farmer (Liberal governments) keep feeding them.

 

Watch what happens when the young millennial inherits a sizable amount when the baby boomer parents pass

New kitchens, cars, holidays, treats and toys followed by more holidays and living it up

Right up to when there is nothing left of their parents life of working, saving and investing

Very few seem to continue growing that family wealth to make it perpetual for future generations

Hey, lets Party Party

 

I agree mostly however being an Instagram influencer is most definitely a job (Perth people laugh at this but its true). A girl i went to high school with earnt over 10k a month in 2012 with just over a million followers. She now has much more followers and I'd hesitate to guess what she pulls in now. Similarly people at my local gym (genetically gifted Personal Trainers) earn thousands each week by simply posting images and promoting brands and products to a large audience. One of my mates from high school lives in Kuwait, works as a PT and travels regularly to Croatia and Greece with most of his income from Instagram. Its a real paying ongoing job. Its just unconventional and i think the older population just simply don't understand it.