I once wrote an article titled “A funny thing happened on the way to the cemetery”.
When the pension was conceived, average life expectancy was 62. Retirement age was 65.
The pension was predicated on the assumption that most would never receive it.
Someone born in 1950 had a life expectancy of 62.
But by the time they reached that age – life expectancy had increased to 82.
The assumptions of the aged pension are hopelessly wrong, and no politician will ever tell you the truth of that.
Average earnings are now $100k pa and the minimum amount someone needs to “exist” with dignity is around $70k pa.
The aged pension is $52kpa.
This is not a life you want – and “saving” (which includes superannuation) will never be enough.
I have been surprised by the responses to my “question of the week” email series and there has been a common thread…
- How do I provide for my children’s future?
- I retired too early, and I have run out of money…
- How do I plan for my future?
- I worry about the future…
Something else significant has happened – people now have children later – so instead of being able to “put your head down and invest for retirement” at age 50, AFTER your children have grown up, that time has been put back by 5-10 years.
The expensive time of life (raising children) has been pushed back and so the time left to invest for retirement has been compressed.
You simply must balance all the needs of life – kicking the can down the road no matter how appealing that siren’s call is, will never be a sound plan.
Some assumptions need to be adjusted.
- Either find a way to start your investment plan while still raising children.
- Or push back retirement plans to give time (20 years – two property cycles) to give time for compound interest and capital growth to do their work.
- Or a combination of both.
I think most people know this at some level – but perhaps don’t want to think it out loud. When you can however, you can own it, and take empowerment from it, to successfully plan for you and your family’s future.
I have always been here to help you at all stages of life;
- Your first home.
- Moving home
- Investing
- Downsizing
- And in the planning to help you make your goals happen – This has been and always will be my passion and commitment to you
I do have solutions for these issues for you – yes it will take time and dedication – the worthwhile endeavours in life always do. It will also require the courage and confidence to take the first step, and I’m here to help you get there.
Does this raise any questions for you?
Ask away – it’s what I’m here for.
Alan Heath, Mortgage Broker Brisbane