Retirees may run out of money a decade before they die: report

WEF report reveals that retirees may run out of money a decade before they die.

Retirees may run out of money a decade before they die: report

Retirement income studies repeatedly reveal that retirees are worried their savings won’t last as long as they will.

And, as the latest World Economic Forum (WEF) white paper Investing in (and for) Our Future reveals, many retirees around the world will outlive their savings by as much as a decade or more.

The report finds how retirement account balances aren’t increasing enough to cover rising life expectancy. Australia’s retirement shortfall increased by around five per cent last year.

“The size of the gap is such that it requires action from policymakers, employers and individuals,” said report co-author Han Yik, head of institutional investors at the World Economic Forum.

Mr Yik suggests that unless more is done soon, retirees will have no choice but to tighten their belts and pre-retirees will need to postpone retirement.

“You either spend less or you make more,” he added.

In Australia, the WEF calculates that 65-year-olds, on average, have enough savings to cover just 9.7 years of retirement income. That leaves the average male with a gap of 9.9 years and women, who live longer, face a 12.6-year gap.

WEF estimates were based on having enough income to cover 70 per cent of pre-retirement pay and didn’t include Centrelink or other government welfare payments in the total.

The report estimates a retirement savings gap of around 10 years for men in the UK, Australia, Canada and the Netherlands, with longer-living women in those countries facing an extra two to three years of financial uncertainty.

However, those countries are doing much better than Japan, where the retirement savings gap is 15 years for men and almost 20 years for women. This, says Mr Yik, is most likely attributed to a longer than average life expectancy in Japan coupled with a nationwide predilection for safe investments that produce smaller gains over time. As a result, average savings in Japan are only enough to cover 4.5 years of retirement.

YourLifeChoices research in recent years has showed shoed the extent of retirees’ concerns they will run out of money before they die. In the 2019 Ensuring financial security in retirement survey, retirees were asked how confident they were that their savings and income would enable them to maintain their current lifestyle for as long as they live. Almost four in 10 said “not very” or “not at all”. Another 17 per cent were unsure whether their savings would last. 

While the population may look to the government to bail them out of this predicament, it seems that globally, governments are handballing that responsibility back onto the individual, by shifting to more defined contribution plans, account-based pensions and introducing retirement income streams over traditional taxpayer-funded pensions.

“All the risks that governments and employers used to have, we’ve shifted that onto workers,” said Mr Yik.

At the current rate the retirement shortfall gap is widening, the world’s collective retirement savings gap could exceed $400 trillion, up from $70 trillion in 2015, says the report. The US’s savings gap will be the largest at $137 trillion, followed by China at $119 trillion and India at $85 trillion.

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    COMMENTS

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    MICK
    17th Jun 2019
    10:18am
    It should come as no great surprise that retirees will run out of money whilst still alive. We need to remember that most of us did not start with superannuation until well into our working lives. Bear in mind also that our right wing governments have done something no other first world economy has done to its retirees: ripped the pension rug out from under many retirees. I'm not talking about the genuinely wealthy but rather those who have a few income earning assets which bring in around pension level.
    Expect the attack on OUR retirees to continue. Guess who voted for the franking credits government? Correct......the greedy self obsessed amongst us. Enjoy what is coming. No wailing please!
    leek
    17th Jun 2019
    10:53am
    I agree with Mick 100% I am almost 61. I know that I cannot afford to drive/keep a car long term. So moved to a retirement village with bus to shops. Even if that stopped, live outside a local bus stop to a big shopping centre. Can also buy online these days.
    My neighbours catch taxis all the time.
    I was also devastated when the Libs got back in. Not so much for the AP, but the rest
    of the Income support people. The numbers of people living in poverty is going to increase. And crime will also increase. I can't blame a mum for stealing food for her family, it might be wrong, but I know I would do it if I was in that situation.
    The cost of housing/utilities is getting out of control, and really is the root behind all of the problems.
    fred
    17th Jun 2019
    11:26am
    You are the one who is wailing Mick , when are you going to stop blaming everyone except yourself . many counties overseas do not have the Aged pension so why not try being grateful . maybe you did not save enough , work enough or simply overspent !
    KSS
    17th Jun 2019
    12:24pm
    fred you must be aware that MICK has several overseas holidays a year including his favourite skiing. I don't think he really has a lot to complain about. He could just cut out a holiday or two if things got that bad for him.
    Anonymous
    17th Jun 2019
    12:29pm
    MICK, please tell me if I'm wrong but didn't you complain about Labor wanting to do away with franking credits before the unlosable election?
    roy
    17th Jun 2019
    1:45pm
    MICK is like a cracked record, sheesh.
    MICK
    17th Jun 2019
    1:48pm
    frEd, KSS and OM - I've hit a nerve have I? All of you of course voted LNP because YOU ALWAYS VOTE FOR YOUR BANK ACCOUNTS?

    Unlike despicable Australians you have no conscience and will vote for your financial interests. That's why we have a climate change scenario. People just like you do not care!!!!

    For the record OM I carried through on what I said. The changes to franking credits did affect our income although unlike the above lot it was not a (greedy) world ending claim. As I indicated I voted Labor because we needed to see this totalitarian government in formation stage be kicked out. If you can't feel the noose tightening then you deserve what you vote for. Then you'll be whining. Until then butter won't melt in all of your mouths.
    As I've said before......despicable Australians who have no care or guilt about what they are doing. If you lot had any self respect, you don't, you could not in all fairness vote like you do on issue you are fully aware of.
    Enjoy the sun whilst it lasts. The economic winter is coming.
    Anonymous
    17th Jun 2019
    2:30pm
    Wow MICK, a simple question has given an amazing reaction with, as usual, a diatribe of personal insults which could well be untrue. I only posed the question because the above post made out that you agreed with Labor's intention to do away with franking credits for some who need them yet on more than one occasion you decried Labor's policy. There is a sample here:
    "Not whinging Paddington. Fairness is however important and what Labor will create is an environment where in come earners get the franking credits and retirees are stripped of them unless they earn a lot of money in their own right. How is that fair?
    MICK, 14th May 2019, 11.21am
    Agree Mindy but the system needs to be fair. Tell me that taking franking credits from retirees whilst leaving them for income earners is fair?
    MICK, 14th May 2019, 11.22am
    Agree. Kaye is taking a very one sided view from what I can see and has not addressed the fact that poorly remunerated self funded retirees are the very people being targeted whilst taxpayers get to keep the franking credits for the most part. That is not how fairness works.
    MICK, 14th May 2019, 11.25am

    There are some who would label this as hypocrisy MICK.
    Cowboy Jim
    17th Jun 2019
    2:33pm
    Mick. Are despicable Australians about the same as Hilary Clinton's deplorables? If so then count me in. Never claimed franking credits and now sold all shares, making do what we have got. Arse not hanging out of my pants but happy with the part pension we are getting. Out of our little unit into a family home and we would get the full one no problem; we are happy here so no deal.
    Did not like the Labor philosophy about wage earners losing money while aparatchiks and govt welfare recipients are getting more. Something to do with Socialism - some like it but I do definitely not - had commie govts next door in my youth.
    KSS
    17th Jun 2019
    2:49pm
    Gee MICK seems we hit your nerve.

    Please tell me where you were in the polling booth I used that gives you the knowledge to announce how I voted (or even if I voted). You also have no idea whether the franking credit issue even affects me directly so how would I have been voting for my bank account? Although as I am still working full time I could offset any franking credits against any tax owing - and I would still have been able to even after the election had it gone the other way.

    Really MICK you need to chill out and stop making wild accusations you cannot possibly substantiate.
    TREBOR
    17th Jun 2019
    5:19pm
    Not quite as simple as that, OM - even many of those who considered Labor to be
    The Beast 666 for wanting to chop franking, said that the current scheme by Labor would continue to benefit the over-fat while chopping those with not much.

    Easiest way is to just abolish franking altogether and pay your own taxes. If you can get it past the ATO without all the current confusion and shape-shifting, go for it.
    roy
    17th Jun 2019
    5:26pm
    I seriously think MICK has a screw loose, his poor family, sheesh.
    Paddington
    17th Jun 2019
    5:59pm
    Cowboy Jim, Labor does not equate to communism. It is the opposite of the LNP which stands for wealthy people’s right to maintain their wealth at the expense of the poor.
    No surprise you are a Trump supporter. You have Trump now in all his glory, wreaking havoc internationally and within his own country and that of his close neighbours.

    China and Russia are communist and you think some of us on here are similar?!
    A country that does not look after its poor is very backward and living in the dark ages.

    People’s values or a lack thereof never cease to amaze me!
    Anonymous
    17th Jun 2019
    6:19pm
    The Rightard trolls are weighing in thick and fast, MICK. Don't worry about them.
    Anonymous
    17th Jun 2019
    6:19pm
    The Rightard trolls are weighing in thick and fast, MICK. Don't worry about them.
    MICK
    17th Jun 2019
    7:55pm
    The trolls who are now trying to placate their very small or non existent consciences are outrages Knows-a-lot. Hard to confront yourself when you are a self interest bum prepared to sell out the country.........and then be unable to escape the truth.

    As I said during the election campaign: my vote for Labor had nothing to do with supporting the party and everything to do with saving the nation from the most dangerous government I have ever seen in this country. The franking credits loss would have hurt a little but then the whole BS masks the fact that we are talking about small change. The greedy buggers avoid that topic. Easier to attack the messenger on some fabrication. Those involved should be ashamed to call themselves Australians. They're little more than spew. Sorry. The facts.
    Paddington
    17th Jun 2019
    8:16pm
    leek, you say you moved to a retirement village. I thought they ripped people off and it was like paying rent every week. Have you found one that does not take a lot of your money?
    You have retired young but maybe you are still working?
    I think the people supporting the LNP are mostly wealthy or uninformed.
    The fact that they are taking the Sunday penalty rates shows they go after the lowest paid rather than the top earners and wealthiest.
    ScoMo is a showman and sold his lies well. It was a victory for the gullible and greedy!
    Paddington
    17th Jun 2019
    8:23pm
    Mick, you hit a nerve, the one that resides in the back pocket. Ignore the nasty comments, they are just reacting from their consciences. Guilt makes people knee jerk react and people who voted for such an awful mob as this government with little moral compass and compassion would be stirred by your comments. I am hoping that the federal labor does not cave in to the corruption like the Qld premier has with Adani to keep her job. The coal being ramped up in Qld is nothing short of immoral. QandA should be good tonight with a panel of scientists and one buffoon, poor fellow, lol!
    AussieTuca
    17th Jun 2019
    10:26am
    Just a bit of Dark Humor...

    I have already reserved a four x four space under the bridge near my current place. Will buy a reasonable tent and sleeping bag next year. And it is close to the Salvos too. What more can one desire?

    Thanks Liberals and Labors members for helping me to improve the quality of my last years...
    TREBOR
    17th Jun 2019
    11:39am
    The disabled ex already has her swag prepared in case I go over or something....
    KB
    17th Jun 2019
    10:37am
    Considering the cost of living will keep rising I doubt that pensioners will have enough money to survive on even for rainy days. The government must ensure that pensioners who rely on the pension be greater increases to keep up with the cost of living or cease essential services from rising for their own hip pockets particularly the state government in SA
    KB
    17th Jun 2019
    10:37am
    Considering the cost of living will keep rising I doubt that pensioners will have enough money to survive on even for rainy days. The government must ensure that pensioners who rely on the pension be greater increases to keep up with the cost of living or cease essential services from rising for their own hip pockets particularly the state government in SA
    Stof
    17th Jun 2019
    10:43am
    What a ridiculously researched article! No real figures related to Australia just global bulk figures. No proper mathematically sound analysis. Just scaremongering. Disappointing really that Your life choices would resort to such blatant click bait,
    TREBOR
    17th Jun 2019
    11:41am
    Ann Ecdotal - the hierophant of the left wing - clearly shows that costs of living in real terms are steadily outstripping incomes for the lowest levels of income - which includes pensioners and many retirees.

    You don't need a weatherman to tell which way the wind blows....
    KSS
    17th Jun 2019
    12:26pm
    Second comment removed:
    Conversation is to be constructive and kept on topic. Any bickering, un-constructive or irrelevant comments may be removed with or without warning.
    After two warnings or two comments from the same user have been removed the third will result in the offending user being banned from the YourLifeChoices online community.
    GeorgeM
    17th Jun 2019
    1:44pm
    I agree, Stof, a completely ridiculous research which compares apples to oranges to bananas, etc. The statement "....didn’t include Centrelink or other government welfare payments in the total." shows what a pathetic research this is. One assumes they did this in collecting data from other countries also, hence a completely meaningless research, with all other advanced countries having universal / defined benefit age pensions. YLC should not have ignored this serious omission of data. However, YLC's own poll results mentioned are far more reasonable and show the real concern here.

    That said, the only real solution, especially for any civilised advanced country (hope Australia considers itself to be one), is to implement Universal Age Pension without any tests other than Age (65 years) and Residency (say 15 years) which should be tax free, with all other income taxed (other than a concession for the returns on Super savings up to a limit).
    leonYLC
    19th Jun 2019
    12:16pm
    Stof: Note that we have quoted Australian figures and we have attached a link to the entire report, which you are also able to read at your leisure.
    Farside
    17th Jun 2019
    11:03am
    And the point of the article is what exactly, that most people will not be fully self-funded in retirement? Our retirement system is designed to supplement the old age pension and is targeted at a "comfortable retirement" rather than 70% of pre-retirement income. The real surprise is there are so many people with three years savings at pension age.

    "WEF estimates were based on having enough income to cover 70 per cent of pre-retirement pay and didn’t include Centrelink or other government welfare payments in the total."
    Viking
    19th Jun 2019
    9:54am
    Farside, I think the point of the article was to give those who forgot or didn't know they would one day get old and retire or couldn't be bothered to save for it, the opportunity to have another whinge. I believe those in genuine need should be well cared for but I can't believe its 70% of the population. The number of grey nomads with $80k caravans and $70k 4WDs filling $70 per night parks, overseas holidays and cruises suggest it's not.and YLC advertisers seem to agree.
    Farside
    19th Jun 2019
    5:20pm
    I take your point Viking. The grey nomads are no doubt responsible for spending a good chunk of the collective retirement savings however they represent a small minority of retirees. I very much doubt the majority of grey stay-at-homes among current retirees live on 70% of pre-retirement income without government support.
    AussieTuca
    17th Jun 2019
    11:22am
    x
    older&wiser
    17th Jun 2019
    11:33am
    My first reaction is - what savings? Did not have the luxury of much super - what little I did have went towards almost paying off my mortgage. Always been single, makes it doubly hard, plus some years off caring for elderly relative, then low paying jobs. Worked my butt off to get my own house instead of renting - no holidays, no going out on dates, no new cars (current car is 22yo).
    TREBOR
    17th Jun 2019
    11:42am
    Know the feeling - then comes divorce, asset stripping, injury and illness.... and endless fights with your government (bastards).
    johnp
    17th Jun 2019
    11:34am
    Do not really agree with the article. Superannuation has meant there are many more self funded retirees these days whereas years ago they were almost non existent. Often they only draw down about 5% from their fund. It is pollies that are the main problem with all their obscene salaries, pensions, perks, travel, allowances, meals etc etc.
    DaddyKool
    19th Jun 2019
    11:01am
    Agree.
    I’m 65 and have a healthy super fund.
    Largely thanks to Paul Keating and solid employment enabling salary sacrifice.
    Retired 3 years and so far my fund balance is greater than at retirement.
    johnp
    20th Jun 2019
    9:54am
    thats good DaddyK. But be vigilant. The LNP and the banks are agonizing over as to how they can get their hands on everyones' Industry Super Fund monies !!
    TREBOR
    17th Jun 2019
    11:37am
    Inevitable given the escalating real rises in costs of living for various reasons (privatisation lurks high), unless you are one of those already fat and indexed etc.

    The demolition derby on incomes for the 'lower end' continues unabated.
    Paddington
    17th Jun 2019
    12:01pm
    Remove all the loopholes at the top and problem solved. More money is spent on loopholes than pensions, new start, NDIS, etc.
    Change the way we address the economy.
    Globally, we can continue to stuff up the environment and money won’t matter!
    Anonymous
    17th Jun 2019
    12:26pm
    Nice generalisation Paddington with little meaning. What do you mean by loopholes? Who is spending the money on the loopholes? What affect does that have on Pensions, Newstart and NDIS? What changes as to how we address the economy do you have in mind?

    Australia cannot change anything to do with the environment globally, Australia can only control what Australia is responsible for. We produce about 1.4% of the world's pollution so any change may not make a lot of difference. We could follow the Green's ideology and stop all mining, reduce the herds by 2/3rds and close all coal and gas fired power stations but I don't want to be living in Australia if that happens. The Pensions, Newstart and NDIS you write about will also suffer as about $66B of income from coal sales will be lost to whichever government is in power.
    MICK
    17th Jun 2019
    1:51pm
    Come off the grass OM. You are aware of how the system works.
    Your entire spiel is straight out of the Liberal Party handbook and your inaccuracies are the stuff of the upper class establishing its right to rule. Never let the truth interfere with a good lie shall we?
    Anonymous
    17th Jun 2019
    2:38pm
    Thanks MICK, I just asked Paddington to clarify his post as he is doing what you have always done, make insinuations without any shred of proof as to their veracity. If I am inaccurate there is nothing to hold you back in pointing out which they are and why they are inaccurate.
    Sceptic
    17th Jun 2019
    2:53pm
    I guess that you are partially correct in your response to OM, Mick. Australia's contribution to world greenhouse gas emissions is no more than 1.3%. All below that is pretty correct, although revenue from world coal sales is probably a bit understated. It is a fact that the Greens want to close all mining and a fact that they want to cull the herds, also a fact they want to close all coal and gas powered fired power stations. It is also a fact that if Australia closed down tomorrow it would have ZERO effect on global climate and greenhouse gas emissions. Last years global emissions increased (yes increased) by more than Australia's total emissions. It has nothing to do with Liberal party handbook, should such a thing exist. Perhaps you should spend less time abusing any who have a different view to you and read a little more.
    roy
    17th Jun 2019
    5:33pm
    Sceptic, hear hear.
    Paddington
    17th Jun 2019
    5:42pm
    OM, as Mick stated you know exactly what the loopholes are. They range from companies paying zero tax to individuals being able to write off stuff that poor people cannot, negative gearing, family trusts, franking credits, etc.
    OM, it well known and factual.
    Your argument that it does not matter what we do re the environment is wrong. Other countries in our region look to us and we need to influence them to do the right thing. The coal that we are now pushing is not the right way to go, in fact, it is disgraceful. Also, I was unavailable til now as had a hospital appointment and good on Mick to try to set you right but it is like throwing pearls to the swine trying to educate sme of you on here.
    MICK
    17th Jun 2019
    8:01pm
    Sceptic: you are using the same old arguments the coal industry used for two decades to try and shut down the blossoming of the renewable energy industry. It failed.
    Australia may well be the one of the smallest players in greenhouse gas production but we frequently set an example for some of the biggest culprits and of course WE DIG OUT MORE COAL THAN ANY OTHER COUNTRY. That my dear friend is the issue, and before you say it I do realise that we will suffer an economic hit if we closed down our coal industry. Of course any intelligent government, one not controlled by the fossil fuel industry, would develop renewables industries. Of course our current misfit government does not have it in it. It will run us into the ground and then blame Labor which would be run in the Daily Telegraph repeatedly until the mentally challenged actually believed it. That is the sort of country we live in. God help us.
    Paddington
    18th Jun 2019
    9:56am
    We are .3 of the world’s population yet are causing 1.5 of the damage by way of carbon dioxide in the air.
    Hope some on here watched Q and A last night with the scientists. It was very interesting and they explained things well.
    roy
    18th Jun 2019
    9:56am
    MICK darling, Australia ranks 5th in countries digging out the most coal, Google it darling and take your chill pills before you forget.
    Sceptic
    18th Jun 2019
    1:50pm
    Mick doesn't like facts, Roy. He prefers to live in his little echo chamber on this site.
    roy
    18th Jun 2019
    5:08pm
    I'm quite worried about MICK.
    Karl Marx
    19th Jun 2019
    1:02am
    yes roy you should be worried as it's obvious you are cyberly in love with MICK as you have to reply to every post he makes without any contribution to the actual post & when he doesn't post for a few days you get an anxiety attack that makes you post for him to comment & his whereabouts.
    roy
    19th Jun 2019
    10:35am
    SFR, you get on with your own life, don't worry about me.

    He is such a paid Labor troll and quotes from the ALP handbook in order to get his payments from them that I have to remind him if he hasn't posted for a few days, I don't want him to get underpaid.

    Every one here who doesn't agree with him is a paid LNP troll but we must not call him a paid ALP troll, heaven forbid. Imagine being stuck next to him at a dinner party.
    Get on with your own Labor adoring life and give my commiserations to the union bully boy Shifty Shorten when you next speak to him.

    He hasn't come back yet on his miss statement that Australia is number one in the world for coal extraction, thought not.
    Karl Marx
    19th Jun 2019
    12:22pm
    roy, so when are you going to contribute to a post instead of attacking & making false accusations against 1 poster.
    Every post of yours is non contributory so I come to the conclusion you can't think for yourself, pity.
    I have a very good life, I think you need to get one
    roy
    19th Jun 2019
    1:38pm
    i can't fink for myself no wot i meen but at least i dont vote for the ALP no wot i been.
    Farside
    20th Jun 2019
    11:55am
    Mick, you should not have gone for the caps lock key ... WE DIG OUT MORE COAL THAN ANY OTHER COUNTRY to draw attention to your blooper. Surely you meant to write WE EXPORT MORE COAL THAN ANY OTHER COUNTRY. Blame it on the autocorrect. Happy Roy?
    Viking
    20th Jun 2019
    2:53pm
    I agree the export as against mining figures, we are providing fuel for others to pollute the earth. On this issue, while the LNP is now claiming that our emissions are reducing on a per capita (rather than absolute basis) it would then be equally reasonable to quote comparative emissions on the same basis. Given that Australia contributes 1.5% od global emissions but represents only 0.3% of world population, on the LNPs chosen measure of per capita, Australians contribute five times the global average of greenhouse gases.
    Furthermore, it's not true to claim that if we didn't export the coal someone else would. As the world's largest coal exporter, if Australia exited the market, the global price of coal would rise to all buyers. This would provide an ever greater incentive for the world to move to alternatives, it's not Labor propoganda its basic, unarguable economics. proven by the recent example of Brazil's exit from the iron ore market.where global prices have risen substantially.-
    Paddington
    23rd Jun 2019
    12:57pm
    Ah, roy, you are so sweet and romantic lol!

    17th Jun 2019
    12:04pm
    Is this article factual? It addresses income in retirement yet leaves out the age pension in its deliberations. This is a nit insignificant amount to omit in the context. As to retirees fearing that they will run out of money, this is surely a normal fear and would be also felt by those still employed from time to time. Come on Leon, you can do better than this.
    MICK
    17th Jun 2019
    1:54pm
    Superannuants WILL run out of money because of the limited time they spent within the superannuation system. Of course ex pollies and bureaucrats like yourself have managed to accumulate large sums due to the time in superannuation, tax lurks which high income earners can access and generous taxpayer funded contributions.

    You really become more despicable by the day OM. The truth is not within you.
    Anonymous
    17th Jun 2019
    2:35pm
    Thank you MICK, you have made more erroneous statements once more. You have no idea who I am, what I did to earn a wage, what I managed to accumulate as assets along the way, whether a divorce took from those assets, whether illness caused more savings to disappear or whether I receive an age pension. Your bully boy tactics now include making up stories to suit your narrative. You are losing credibility with each post MICK.
    Cowboy Jim
    17th Jun 2019
    2:44pm
    Superannuation WILL run out of money because it is a wealth generating vehicle for the next generation. In my birth place Govt Super was introduced in 1947, everybody paid in all their lives and only get anything back after 64/65 years of age or if becoming disabled before pension age. There is no money to be claimed by the estate after death. So rich folks pay in a lot of money during their life time but only get the same pension payment as the manual worker at pension age. Maybe that is the reason overseas super is sustainable. People here would not like to put in money knowing only by surviving past 65 they will get any back.
    roy
    17th Jun 2019
    5:30pm
    MICK, you become more despicable by the day.
    MICK
    17th Jun 2019
    8:03pm
    You voted for your franking credits OM. Who did you say has lost credibility?
    I tell it like it is. You run the party line. There is a difference....better known as being recognised as a real Australians rather than a lying troll. You?????
    TREBOR
    17th Jun 2019
    10:21pm
    Easy, boys - nobody is despicable..... let's value their good points and dispose of their bad ones with facts and figures - then we'll hang 'em high..... despicable lot that they are......

    Pardon me, roy - is Mick the cat...... oh, forget it..... pearls before despicables .....
    roy
    18th Jun 2019
    9:51am
    MICK, did you forget your medication yesterday?
    Old Geezer
    18th Jun 2019
    2:42pm
    Refund of franking credits is so the system is fair for all. The no tax on super after 60 is the problem which only benefits the well off.
    Cheezil61
    17th Jun 2019
    12:40pm
    If we are unable to earn a politician's wage (& keep in mind they keep wanting us to work harder & longer for less money!) it is unlikely that hard working Aussie battlers will ever be able to put enough super or savings away for retirement & unlikely anything will change while top end of town keep looking after the weathy mates in big business!. Does not help that there is now a cap on salary sacrifice for those that might just afford to put a bit away (not encouraging). Also doesn't help when we see those that aren't contributing to the tax system (including big business or Newstart/Disability recipients -genuine or non genuine) appearing to doi as well in life or better than the working class, not very encouraging at all!
    Just makes us feel like dying young as it is unreasonable to expect manual labour type workers bust their guts until they are 70! Brings one down into deep depression etc. Oh & if so many current pensioners cannot afford heating (as per todays news story) now how can they be expected to make their savings last longer in retirement (ie tighten their belts, what a joke). If this story is designed to scare those of retirement age into saving more or working more then you've missed the reality & are delusional!
    Janus
    17th Jun 2019
    1:06pm
    Nothing for it , I fear. bring on the "New Plan" for the elderly, the Cull.

    If only us pesky old folk would stop living for so long, then everything would suit the Gubmint well. The new catchcry: hurry up and die! (Actually this is not new...the Canberra policy makers have had this in their minds for a while now...)
    TREBOR
    17th Jun 2019
    5:23pm
    Carousel at 60? Soylent Green? I've been wondering about fat people disappearing from the streets and the glut of pork on the market - good thing I don't like pork... just a personal taste,nothing to do with any religion or nuffin'.
    Karl Marx
    17th Jun 2019
    1:07pm
    This current corrupt lying decieving greedy government won't do anything for pensioners appart from driving more & more below the povrty line & even homeless.
    Yes, all you people that voted back in this LNP government will be to blame for what happens in the next 3 years.
    Personally I should be ok but that doesn't mean this greedy government won't come after me or other SFR's to shore up the coffers for their greedy mates & own extremely lucrative pension funds
    Watch this space when this government gets the pension income review underway
    Anonymous
    17th Jun 2019
    1:12pm
    Can you tell us all what Labor's policy was coming into the last election for pensioners, SFR's and Newstart recipients please SFR?
    Karl Marx
    17th Jun 2019
    1:16pm
    You already know old man, don't play games
    Anonymous
    17th Jun 2019
    3:00pm
    Yes SFR, I do know what Labor was promising pensioners, 3/4 of 5/8 of bugger all.
    TREBOR
    17th Jun 2019
    5:24pm
    They were talking about raising unemployment benefit - not much about pension... they needed a firm policy statement there, and they missed the boat - but not the boot...
    Anonymous
    17th Jun 2019
    5:59pm
    Well Bob, if you mean that Labor talked about having a REVIEW into Newstart then you're right but a review by a politician is usually code for DILLIGAF.
    TREBOR
    17th Jun 2019
    10:09pm
    Yes, you have to listen to their words - not what they are trying to sell. Pauline Hanson said she was not supporting the government tax cuts 'at this time' ........... which is short-hand for:- "I'll change my mind later and once again betray those who think I'm The Great White Hope."
    Tom Tank
    17th Jun 2019
    1:59pm
    Assessing the income needed for retirement as 70% of pre-retirement income is way of the mark for those who own their own house and car. Those who rent are less fortunate but 70% for those on average working incomes is way over what is needed.
    There is a big difference between needs and wants. In my experience I reckon about 50% of the average weekly wage of around $60,000 provides a comfortable, but not extravagant lifestyle.
    I guess the problem is that those on $100,000 a year think they are doing it hard but in fact should be doing it rather well but it depends on their perspective.
    Tom Tank
    17th Jun 2019
    1:59pm
    Assessing the income needed for retirement as 70% of pre-retirement income is way of the mark for those who own their own house and car. Those who rent are less fortunate but 70% for those on average working incomes is way over what is needed.
    There is a big difference between needs and wants. In my experience I reckon about 50% of the average weekly wage of around $60,000 provides a comfortable, but not extravagant lifestyle.
    I guess the problem is that those on $100,000 a year think they are doing it hard but in fact should be doing it rather well but it depends on their perspective.
    Viking
    17th Jun 2019
    2:01pm
    I really can't believe that so few people knew that they would eventually grow old and retire and we surely all knew that even if we did rely on the government pension it would be meagre at best and that governments of all persuasions couldn't be trusted so we needed to personally prepare financially for a long retirement, didn't we? Surely it didn't need the introduction of mandated super to make us realise this? I can understand that some have special circumstances due to health, injury or caring for a family member where support is needed and I believe this should be far more generous than at present but surely this should be the 20-30% exception and not the 70% general rule that it is at present.
    Australia's massive negative balance of trade, one of the highest in the world shows we spend to much on foreign rubbish and save too little and now rely on the savings of hitherto peasant Chinese to invest here and prop up our industry and infrastructure.. The richest country in the world, to much spent too little invested because we didn't know we would get old and trusted government.. What ever happened to the legendary Canny, self sufficient Aussie?.
    Karl Marx
    17th Jun 2019
    2:37pm
    We all knew that one day we would retire (was 65 back then, women was 60). But the ever changing of goal posts for retirees & pensioners makes it a minefield to navigate. Saving, paying for your own home & doing without is now a punishable crime by past & current governments & getting worse.
    We play & plan by the rules but when they keep changing what can you do.
    Watch this space for the pension income review that is now proposed by the current government that didn't put it on the agenda before the election lol. 3 years to rip the guts out of pensioners & retirees before the next round of elections.
    TREBOR
    17th Jun 2019
    5:26pm
    Not that simple, Viking et al (poor old Al, always lumped in with the rest somehow)... life is what happens when you're busy making other plans... not that I've ever been a fan of John Lennon .... but he sometimes hit the mark ....
    Viking
    17th Jun 2019
    7:50pm
    Trebor so are you saying that some didn't know they would eventually retire or they didn't plan for it? Whichever, they can hardly blame the government for their ignorance or lack of planning or their personal decision to plan for something else. I agree that some people are just unlucky in health, accidents or dependents but that's surely not 70% of the population?
    TREBOR
    17th Jun 2019
    10:14pm
    Not at all - just that it's not always plain sailing, and you must not generalise. Are you stating that all those in the position of reliance on pension only did not plan, work, and save, and scrimp to get a decent retirement?

    The percentage of the population who do have not had a full 'lifetime' of universal super (a working life of 50+ years) and have endured high and rising costs of living along with fractured employment conditions for the past forty years or so, and dismal social conditions wrought by government fiat.

    What is your proposal to even out all the humps and bumps? We control the economy, employment, business, management, social conditions that ambush some and not others, and incomes of all so that all will reach retirement at the same level at least?

    How else arrive at an equitable retirement package for all? I'm open to suggestions.
    Viking
    18th Jun 2019
    7:42pm
    Trebor, as you will probably disagree with whatever I say, my reply to your last question of "equitability" is 'plan, work hard, scrimp and save hard for what you want and be prepared to sacrifice unnecessary wants today for what you may need tomorrow. I don't see how its equitable for those who do - to pay to for those who can't be bothered. You can only spend your money once.. I have already said I believe those in genuine need should be better provided for than they are at present. If the 20% needy compared to the 70% today applied, there would be more to provide for those in genuine need.
    You say "I mustn't generalise" so when its an issue affecting millions do want you.me to talk about one person? Well I have and I have paid a heap of tax after working damned hard and I don't get even a health card in return. Talking about generalities so averages, Australia has the highest betting spend and one of the highest alcohol spends in the world. It also has a high level of spending on cars. Talking generalities and averages or individuals, if that money was saved and invested over a lifetime it would go some way to providing for a few extras in retirement. The only real alternative is we all pay more tax, it seems individuals and generalities don't want that.either. I'm sure you disagree but if we reward failure and penalise success we'll all be worse off, especially those in genuine need.
    Discontented
    17th Jun 2019
    2:03pm
    Yea Mick not happy being called greedy and self obsessed,have been retired now three years and have cost this government zero except for a one off payment of$4000 from franking. If I had not invested some the of money I earned over my working life I could have a pension and all the other benefits.So as a married couple I have worked it out that we have saved the government money,so why are you so nasty and bitter.
    Discontented
    17th Jun 2019
    2:03pm
    Yea Mick not happy being called greedy and self obsessed,have been retired now three years and have cost this government zero except for a one off payment of$4000 from franking. If I had not invested some the of money I earned over my working life I could have a pension and all the other benefits.So as a married couple I have worked it out that we have saved the government money,so why are you so nasty and bitter.
    Cranky
    17th Jun 2019
    3:42pm
    I would like to know why, after paying Taxes and other charges until I was almost 76 years old, and further, a percentage of the Taxes I paid were supposed to have gone into a fund to finance my retirement. What happened to this money. Also, Why are married couples treated differently to al other pensioners, and are paid more than $228.00 a fortnight less than singles and de facto couples who claim they are single. At the moment married couples are treated no better than people on the dole, who have never worked or paid taxes. Wake up Australia and take a leaf out of the book of the U K who pay all their pensioner's the same rate of pension. Can you imagine what I could doo with an extra $228.00 a fortnight, at least I would be able to put food on the table and have three hearty meals a day instead of having to sacrifice one meal a day on many occasions, just to make ends meet - Max J
    Cranky
    17th Jun 2019
    3:42pm
    I would like to know why, after paying Taxes and other charges until I was almost 76 years old, and further, a percentage of the Taxes I paid were supposed to have gone into a fund to finance my retirement. What happened to this money. Also, Why are married couples treated differently to al other pensioners, and are paid more than $228.00 a fortnight less than singles and de facto couples who claim they are single. At the moment married couples are treated no better than people on the dole, who have never worked or paid taxes. Wake up Australia and take a leaf out of the book of the U K who pay all their pensioner's the same rate of pension. Can you imagine what I could doo with an extra $228.00 a fortnight, at least I would be able to put food on the table and have three hearty meals a day instead of having to sacrifice one meal a day on many occasions, just to make ends meet - Max J
    Old Geezer
    17th Jun 2019
    7:49pm
    OAP has nothing to do with what income you have earnt or what tax you have paid. It is only given to those who have no other means of support.
    Paddington
    17th Jun 2019
    9:36pm
    OG, you are all heart.
    Cranky, sorry you need to miss a meal some days, that is sad!
    Old Geezer
    17th Jun 2019
    10:47pm
    Only reason I miss meals is because I'm not hungry.

    17th Jun 2019
    6:14pm
    This is why we need a universal pension.
    Old Geezer
    17th Jun 2019
    7:47pm
    Easy fixed. Allow everyone over retirement age a pension to be paid back from their estate when they die.
    Viking
    17th Jun 2019
    8:02pm
    Old Geezer, face value I'd second that but make receiving it optional. My biggest concern is that knowing the trust we have in politicians, after a few years the idea would morph into a death tax on everything, it would be too much for the bastards to resist.
    TREBOR
    17th Jun 2019
    10:17pm
    Wrong as usual - give everyone a pension in retirement set at the same level for all who qualify through years of input to the economy, tax all income, perks and gifts and fringe benefits over and above that - and establish a totally independent body to handle all super and social security.

    Pension that is bought and paid for out of a lifetime of contribution to the economy is not a debt, OG - and never will be.
    Old Geezer
    17th Jun 2019
    10:45pm
    Nope you only get the OAP as you have no other means of support. It is certainly not paid for iby your contribution to society, Contribute nothing and you still can get it.

    Yes it would not be compulsory.
    Circum
    17th Jun 2019
    10:54pm
    mick you are delusional
    Circum
    17th Jun 2019
    10:54pm
    mick you are delusional
    Circum
    17th Jun 2019
    10:54pm
    mick you are delusional
    Charlie
    17th Jun 2019
    10:57pm
    No it didn't not by a mile, main cause, early retirement because of illness. Lost about 10 years employment and super growth.
    Was 36 yo before I paid any compulsory super, it wasn't part of my generation. After that I did not add any money to it for a long time.
    inextratime
    18th Jun 2019
    12:12am
    I think you will find Paddington, that the rich people in inner city suburbs voted Labor while the 'poor' people in the outer suburbs of Sydney and Melbourne voted Liberal. In Queensland the blue collar workers swung the result to the Liberal where they won 46 seats and were the reason for Labor's defeat. In reality Labor has lost sight of who it represents and all that progressive stuff that was totally unfunded as no one seemed to know what it would cost was the reason Bill shot himself in the foot. To blame Liberal voters for Bills complete misreading of the electorate is ironical at least and daft at worse.
    inextratime
    18th Jun 2019
    12:12am
    I think you will find Paddington, that the rich people in inner city suburbs voted Labor while the 'poor' people in the outer suburbs of Sydney and Melbourne voted Liberal. In Queensland the blue collar workers swung the result to the Liberal where they won 46 seats and were the reason for Labor's defeat. In reality Labor has lost sight of who it represents and all that progressive stuff that was totally unfunded as no one seemed to know what it would cost was the reason Bill shot himself in the foot. To blame Liberal voters for Bills complete misreading of the electorate is ironical at least and daft at worse.
    inextratime
    18th Jun 2019
    12:12am
    I think you will find Paddington, that the rich people in inner city suburbs voted Labor while the 'poor' people in the outer suburbs of Sydney and Melbourne voted Liberal. In Queensland the blue collar workers swung the result to the Liberal where they won 46 seats and were the reason for Labor's defeat. In reality Labor has lost sight of who it represents and all that progressive stuff that was totally unfunded as no one seemed to know what it would cost was the reason Bill shot himself in the foot. To blame Liberal voters for Bills complete misreading of the electorate is ironical at least and daft at worse.
    Paddington
    23rd Jun 2019
    1:08pm
    I choose number three lol.
    Ah Qld my home state for 60 years. Let me tell you about it. For a start, it is not one place.
    The country people opposed daylight saving time because it would fade the curtains and the cows would be confused. They followed directions recently according to Palmer billboards, e.g., turn left at the second Palmer billboard, no, actually the fourth.
    The SE section is a different people. They have different weather and level of education. Still some there are a bit backward and unable to sort out Palmer propaganda and franking credits and death tax and taxes in general. Everyone was to lose franking credits even those who had none and don’t expect a Xmas present from Grandma this year.
    Confused, deluded, and listening to Pauline Hanson, Qld picked COALition.
    Good, informed people, however, did not.
    Karl Marx
    23rd Jun 2019
    1:35pm
    Agree about Qld Paddington. Nth Qld is totally different to SE qld. the yanks would call Nth Qld's mainly redneck banjo players & not very many can sort the wheat from the chaff not even the farmers lol
    geordie
    18th Jun 2019
    4:22am
    "While the population may look to Government to bail them out of this situation". Once and for all, pension is not a government handout. Its a paid for return on money paid in for all their working lives. Just because they say it, don't make it so.
    Farside
    18th Jun 2019
    11:50am
    The pension is not "a paid for return on money paid in for all their working lives." One does not need to have paid anything or a lot, or even worked, to be entitled to the pension. One simply needs be old enough with no other means of support.
    Stoney
    19th Jun 2019
    8:22am
    I'm one of those who will run out of money (nearly 80, and had a ball all my life, so who cares?). Maybe it's time for Governments to arrange euthanasia for those of us who get to that stage - the last thing anyone wants is the ignominy of old people's homes.
    johnp
    21st Jun 2019
    1:43pm
    the LNP govt will soon actively be encouraging euthanasia so as to avoid aged pensions as much as possible.
    Old Geezer
    22nd Jun 2019
    9:45am
    Good idea as many people are now living with little quality of life.