Millennials repeating the same mistakes boomers made

If you had financial forewarning, would it have made any difference to your retirement status?

Millennials making mistakes

What would you like to have told yourself when, all those years ago, you were starting on the path to saving for retirement?

If you had that forewarning, would it have made any difference?

Maybe. Maybe not.

It seems millennials are making the same mistakes as boomers when it comes to planning for a comfortable retirement.

To avert the impending ‘retirement crisis’, young Australians need to learn early how to invest and save for retirement, otherwise they risk walking the same path as six in 10 boomers who will enter retirement this year expecting to run out of money before they die.

That’s the supposition made by Equity Mates co-founders Bryce Leske and Alec Renehan on the Equity Mates Investing Podcast.

Many baby boomers now face gloomy financial prospects at retirement, say the pair, who estimate that around 440,000 older Aussies who will retire this year are not prepared to support themselves to the end of retirement.

“The average Australian would outlive their retirement savings by five years,” say Mr Leske and Mr Renehan.

A recent study backs up this notion.

It found that most older Australians (53 per cent) are worried about outliving their savings, with more women (59 per cent) being concerned than men (47 per cent).

Unsurprisingly, people without super reported the highest levels of worry, with 23 per cent worrying frequently. Concern was highest for 68 per cent higher in those yet retired and those with less than $500,000 in savings were 65 per cent more worried.

YourLifeChoices own research found that six in 10 retirees are either unsure or know that they will not have enough money to live a dignified retirement.

“They fear running out of their own money, even though the safety net of the Age Pension will be there for them,” said Challenger chairman of retirement income, Jeremy Cooper.

“This sends a strong signal that people worry about being sorely reliant on the Age Pension. It’s therefore important that super funds explore ways of providing more lifetime income to their members.”

Around three million baby boomers are expected to retire over the next decade and, if unprepared to support themselves, will increase the strain the public health system, public housing and any budget surplus.

It is critical then for young people to learn how to invest in the stock market rather than saving it in cash, ‘given that between 1900 and 2010 the Australian stock market saw 11.8 per cent growth per year while, at the same time, Australian bonds returned six per cent and savings in cash stood at 4.8 per cent’, reports Super Review.

Nothing created “more wealth for more people than the share market”, says Mr Leske.

Considering the huge disparity in returns on cash and shares, 40 per cent of working millennials are not invested in the stock market, which Equity Mates thinks is a big mistake.

“There are so many barriers to getting started investing. From all the industry jargon to a sensationalised financial media, it was daunting to get started. So, for years, I didn’t,” Mr Renehan said.

“Once you break through these barriers and get started, you understand just how important investing is for your financial future.

"… we hope to introduce more young Australians to the great wealth creating machine the world has ever known. In doing so, hopefully this generation will be better prepared for retirement than their parents and grandparents generations.”

Do you wish you’d invested more money in the stock market when you were younger? What financial advice would you have given yourself when you were younger?

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    COMMENTS

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    17th Jan 2020
    11:25am
    Just save 10% of what you earn from your first day at work and compounding will take care of the rest.
    Anonymous
    17th Jan 2020
    11:41am
    Brilliant - easily done when you're not breadline at the outset and are protected by a family structure... then there is the real world for many.
    Sundays
    17th Jan 2020
    1:15pm
    I agree VCBB. Compulsory Super should make retirement easier for Millenials. However, many do not know, or want to know about budgeting. Saving 10% and not touching it is a simple start.
    Hasbeen
    17th Jan 2020
    2:38pm
    Yes of course I could have saved harder. If I had, I could now jump on my mobility scooter & toddle off to the RSL for a slap up lunch, rather than my ham sandwich at home.

    Of course I couldn't have afforded the formula 2 Brabham I used to set lap records around Bathurst in the 60s. You know I'm not that hungry today.

    I could probably afford to jump on some cruise ship, & get to spend a day at a couple of exotic south sea island, now covered in high rise tourist hotels.

    Of course I couldn't have sailed there in my own yacht & spent weeks there, when they still were south sea islands in the 70s.

    Why the hell would you put off doing all those magic things, until you are too old & doddery to really enjoy them. Most stupid thing I can imagine.
    KSS
    17th Jan 2020
    3:47pm
    Hasbeen, you can afford ham?
    Mariner
    17th Jan 2020
    4:40pm
    Yeah Hasbeen - I did a cruise from Sydney to Marseilles, France, in 1971 instead of saving. Trip took 9 weeks, all thru the Pacific and then Panama Canal, West Indies. Total cost $320, recently came across the receipt. Yep, I spent the dough when the going was good and I do not regret it one bit. Haven't got a clue what a trip like that would cost nowadays.
    Paddington
    17th Jan 2020
    8:52pm
    KSS, you can’t afford ham?
    If you eat at home, do not drink or smoke, it can be done as ham is not that dear anyway. A slice of ham for a sandwich would be about a dollar or so?
    We did not travel because we had a big family instead. There would be no way we could have saved anything, it was a matter of juggling money to keep afloat.
    Of course we both regret not travelling but do not regret our lovely family who can do those things for us.
    We are probably better off now on the pension than when we were when raising our children.
    I guess many families are like that today.
    Anonymous
    17th Jan 2020
    10:44pm
    I'm seriously re-considering deli meats.... stick to steaks and lamb... and fish.

    Hmm - wonder how this rain is stirring up the water and maybe adding a few things for the fish..
    ex PS
    18th Jan 2020
    9:07am
    Why does it have to be one or the other?
    You can save and do all the things you want to do, you just have to be able to prioritize and show just a little self discipline.
    Only children should have the a nicettitude of I want everything and I want it right now and this can be trained out of them.
    I respect those who chose to travell and explore the world when they were younger, I feel that I made a bit of a mistake in not doing more travell when younger myself. But I took the more coventional path of paying the mortgage, putting extra into Super and raising a family.
    I have travelled to Europe, Asia and Great Britain, but get the feeling that I would have had a different ecperiance if I had done it in my twenties or thirties.
    Anonymous
    20th Jan 2020
    11:50am
    We no longer buy deli meats either. Buy ham unsliced and it lasts for ages unlike the deli stuff that lasts 24 hours if you are lucky.

    Trebor fish love the rain and breed very well after rain events.
    KB
    17th Jan 2020
    11:34am
    Put money aside in an account that you do not touch. High schools should teach young people about the need to invest for the future
    Anonymous
    17th Jan 2020
    11:41am
    Hmm... great advice..
    KSS
    17th Jan 2020
    3:50pm
    Why should it be the schools that teach this? FGS, they can't teach reading and writing these days because there are so many other extraneous things in the curriculum.

    If anything it should be the parents and failing that the superfunds when someone gets their first job. All options should be explained including investing in the stock market - which is after all exactly what superfunds do.
    Anonymous
    17th Jan 2020
    6:54pm
    Well - it's not as if they're doing much of a job of teaching other things....
    Incognito
    18th Jan 2020
    3:09pm
    I agree high schools should be teaching about money and investments, not all parents have the knowledge and the cycle keeps happening, I know my parents did not know about investing, and I still know very little. The Barefoot investor has some good books you can borrow from the library one for parents to teach the kids with. The Government would not support teaching even money management let alone investing because they what the elitists to have it all.
    ex PS
    20th Jan 2020
    9:08am
    Schools can only teach a student the mecanics of managing money, the math ematics and processes involved. That is the easy part.
    It is up to the parents to teach through example the
    Principles of good money management. All the theory in the world taught in a classroom will not make up for living in a household where parents are in perpetual debt for items of no real value because of poor financial choices. Parents who surcome to poor choices due to a need for instant gratification will in most cases pass that trait onto their offspring.
    Yeachers may or may not be doing the job expected, but a lot of time is wasted in having to deal with overbearing parents who can not accept that little Johny or Genny may get a less than perfect grade in their exams.
    You can't outscource parenting. You cannot outscource responsibility.
    KB
    17th Jan 2020
    11:34am
    Put money aside in an account that you do not touch. High schools should teach young people about the need to invest for the future
    bartpcb
    17th Jan 2020
    11:38am
    The young not learning from previous generations!!!!! Now there's a surprise!!!
    Mariner
    17th Jan 2020
    4:44pm
    Let the young made their own mistakes at times, we shouldn't nanny them. And some of us older ones are not very good examples either. Made plenty of bloopers myself, some of my investments were downright silly.
    Rae
    20th Jan 2020
    9:19am
    Maybe they do learn. Stats tell us 62% spend every cent they get pay to pay but 38% save some . It matters not how much income these people get either. The ordinary worker may be in the saving group where the high income earner spends all.

    Compulsory super savings may help unless of course the money is just spent widly when it is finally received.

    17th Jan 2020
    11:40am
    Where did the boomers go wrong? Well, in the main we basically trusted our government to do what is right, and not to go down the mad paths of such things as feminist-dominated 'social engineering', which has lead us to permanent unemployment, rising costs of living, hidden real inflation, and increasing poverty for the many. we also trusted out governments to see what was the right thing to do in their job for the people, and not sell the country and all our hard-earned and paid-for utilities out from under us, thus causing massive costs of living rises... we made the mistake of thinking we would be treated fairly in a nation with no history of treating its people fairly, and we felt that increasing education opportunities would mean more effective services as well as far better life and standards for our future generations...

    All of these have caused massive social and economic disruption, even revolution, and have left many without anything in their retirement..while excessively feeding favoured groups - and while the opportunities for our offspring have grown - those opportunities are in reality out of control, since there are now countless avenues in which the young can pursue a 'career' producing and doing nothing of value.. not that it matters in an 'economy' now based on the futile exercise of extracting from the soil only, producing nothing, and relying on 'service' industry to survive, along with the insane concept that flooding the country with cheap labour and masses of people, thus driving up costs of living beyond the grasp of the many, will somehow resolve all the problems installed by piss-poor government.

    There endeth this part of the lesson.
    geordie
    17th Jan 2020
    12:08pm
    Well said. I want to hit the "like" button.
    Mariner
    17th Jan 2020
    1:37pm
    I too like that lesson, IT cost me the job and I was in the service industry at lower pay till age pension. Maybe in the future half of us producing burgers and beer and the other half eating and drinking them. Everything else comes out of China.
    Farside
    17th Jan 2020
    2:55pm
    It might seem "everything else comes out of China" but this will not always be the case if history tells us anything. A few decades ago 97% of China was living below the poverty line and today those proportions have been reversed. Capital will move and exploit another country with cheap hands and overbearing government if there is a dollar to be made. No motivation like greed and self-interest where money and power are concerned.
    Anonymous
    17th Jan 2020
    7:23pm
    My car's windscreen wiper motor committed suicide at the first sign of rain - can't get a part for a Ford these days... has to come from China so won't get here until next week.. meantime I'm struggling to assist burnt out fire victims with supplies and help rebuilding/cleaning up etc... and can't move.

    Point is - the global economy has betrayed us all...
    Anonymous
    17th Jan 2020
    7:25pm
    Farside - that's why governments traditionally in the West exerted some basic controls over power and money.... blatant exploitation is an act of terrorism...

    Now, of course, our government of two parties gets their fingers in the money pies wherever they are... and that is why they sought election in the first place..
    Farside
    17th Jan 2020
    10:17pm
    Trebor, we have discussed this before. Choices have consequences and the choices made by Australian consumers to prefer cheap imports (often dumped at prices cheaper than their country of origin) over local producers inevitably leads to the local business exiting the industry. Use it or lose it as the saying goes.
    Anonymous
    17th Jan 2020
    10:46pm
    Well - there are choices and there are choices... when you choice if on one or another of a cheap product.... imported... twenty years ago I said to an ex-CSIRO guy that while I was happy to buy cheaper products, I didn't like having to buy them...
    Incognito
    18th Jan 2020
    3:26pm
    Trebor I agree with some points but what is "feminist-dominated 'social engineering' got to do with anything?
    As far as imports go, a lot of manufacturing is going to other Asian countries now like Westinghouse have moved to Thialand. I got one of the last Aussie made, of course the parts probably came from China anyway.
    Anonymous
    26th Jan 2020
    5:39am
    That 'Anonymous' is me, BTW - been copping hell with the YLC network for some reason.. they have a smart-arse answer filter, I think... if you get above yourself they slice and dice you...
    ozimarco
    17th Jan 2020
    11:58am
    What has secured a decent retirement income for my wife and I is our superannuation. Even though we only started our super accounts around the age of 40, salary sacrificing some of our income has ensured we ended up with a big enough pot of money to ensure a regular income in retirement.
    My advice to the younger generation is: start small if you must but, more importantly, start early. Put at least 10% of your income into super. If you have extra disposable income, buy blue chip shares. Avoid 'get rich quick' schemes. The ones I tried in my younger days all failed, costing me a lot of money.
    Baby Huey
    17th Jan 2020
    12:01pm
    I agree with the previous comments. There is a need to establish a financial literacy curriculum from early primary school through to end of high school to establish a culture of saving. The problem would be finding teachers with training in basic finance who could present an unbiased view prevalent in the current watered down politically correct education system.

    The first skill to be learned is to how to never trust any government who talks BS about the security of retirement.
    JoJozep
    17th Jan 2020
    12:08pm
    Secret to success. Here is the alphabet I suggest for success over your working lifetime.

    a) work bloody hard
    b) don't buy anything till you can afford it, for example , color TV's (in 1978 it cost $1,000 pounds or today's money $20,000 for a 26" TV)
    c) try and save for a deposit and buy a house
    d) keep your mortgage as low as possible and pay it off as soon as possible
    e) make do with second hand goods or hand-me downs from parents, like fridges, TV's, etc., postpone that new car till as late as possible
    f) support your kids through to finishing UNI. They are your shiny day in times of misfortune.
    g) contribute what you can to super through your work.
    h) eat well, but watch the family budget.
    i) limit holidays to local or interstate travel, and only during vacation periods
    j) where you can DIY, or do short courses in trades you need. Do simple maintenance. (don't laugh, but few plumbers know how to change a tap washer properly that won't leak again in a month)
    k) use a credit card that draws on your savings account.
    l) Avoid cards that loan you money at all costs and put you into debit and tells you your account balance after use..
    m) don't listen to ads that promise easy money especially with that dickhead superman company.
    n) there's nothing wrong if your wife or partner want to contribute to household savings and cheaper expenditure
    o) always question the motive behind financial suggestions as posted regularly on this column, especially what they get out of it.
    p) remember no one owes you a living. Shop carefully and buy only what you need. Be wary of "bargains" check the use by date.
    q) be careful about donating to charities. Find out how much goes to their cause and how much is "administration" You'll be surprised how little finally gets to the needy with a lot of bogus charity fronts.
    r) watch out for greasy politicians, especially at election time. They try and buy your support, note, - using your own hard earned tax dollars.
    s) pay bills on time or before the due date. Penalties can be as much as as 37% higher bills on things like electricity and gas, even if you miss the deadline by 1 hour.
    t) minimize your household running bills. Fix that leaking tap. (DIY)
    u) insulate your roof space and underfloor if possible. Replace old window frames with double glazing - careful very expensive
    v) use public transport where possible
    w) renovate your house at intervals when it's needed
    x) maintain wear items like garden hoses, fittings, tools etc.,
    y) buy, borrow or hire tools and equipment as needed and maintain ready for the next job to come up
    z) Share your experience, you might learn a new trick or two to save money.

    Enjoy, best of all, make a plan and stick to it.
    East of Toowoomba
    17th Jan 2020
    1:24pm
    Nailed it - excellent advice JoJozep.
    Farside
    17th Jan 2020
    3:40pm
    a) work smart often better than work hard
    b) fair point but hyperbole only raises eyebrows .... in what universe was a 26" colour tv in 1978, 1,000 pounds, really? Check the price e.g. Sony 49cm colour tv advertised in Canberra Times 1 June 1978 for $628, , which at CPI would be $3,270 in today's dollars.(https://trove.nla.gov.au/newspaper/page/14556913)
    c) save and invest is just as valid a strategy as buying a house; property ownership is not a panacea, especially when starting out and there is every indication we are in a housing bubble.
    d) paying off a mortgage early only makes sense if you cannot make better use of the money. Mortgage interest is one of the lowest rates available.
    f) nothing wrong with kids carrying a HECS debt to get them through uni, again low interest rate and only pay if on above median income
    g) although super is currently an advantaged investment environment it does not always make sense to direct all investment into super
    i) scared of travelling the world are we? Seems a bit sad to limit yourself to local and interstate holidays and travelling outside designated vacation periods if one has the means and opportunity to travel overseas.
    k) it's not credit if it draws on savings, that would make it a debit card
    m) dickhead superman company? Isn't it easier to avoid all forms of short term high interest rate loans. I'm reminded of Citibank ad encouraging spreading repayments but no mention when screen shows 19.94% interest rate
    o) big tick on this one, should rank much higher. Nothing wrong with scrutinising all advice and being skeptical of advisor motivation and interest
    r) again, question motives. Refer to the recent Auditor General's recent report on LNP misuse of sports grants as one example, or backflips by tumbling Josh Frydenburg, Greg Hunt and others.
    u) a few other changes around the house that can make a difference before shelling out for double glazing e.g. insulate walls, seal for drafts, external shade to north and west facing windows, replace old appliances with more energy efficient models, drapes for windows
    David
    17th Jan 2020
    5:02pm
    Great tips JoJozep. Here are the things I’ve done throughout my life to make me financially secure. Doing them has enabled me to retire at the age of 55…and that’s with having 4 children with a private school education and go through University.
    Financial/super
    • Plan for your retirement when you first start working.
    • Do a budget
    • Check your credit purchases and bank withdrawals against your statements
    • Take care of the pennies and the pounds will take care of themselves.
    • Don’t gamble on horses, sport or pokies ($24b is spent on gambling in Australia every year – that’s around $1,000 for every man, woman and child) and don’t buy Tattslotto tickets
    • Salary sacrifice into super
    • Contribute to super when you start working – I contributed between 5-10% of my salary since I started work in 1981, which enabled me to retire at 55.
    • Always pay your credit card bill in full each month ie only buy on credit what you can afford
    • Change banks if their interest rate is low or they charge fees
    House:
    • Review your energy provider regularly for a better deal
    • Take small steps in the property market: Buy further out of the CBD or better still, in more affordable regional centre, then upgrade gradually. Just because the bank will lend you $XXX doesn’t mean you should borrow that amount.
    • For couples on 2 incomes, live off one wage and borrow as if the income was for one wage. That way, the extra income can be used to pay the loan of very quickly.
    • For house and contents insurance, review and shop around every year.
    • Turn off appliances and lights when you leave the room.
    Medical
    • Don’t take out private health insurance.
    • Choose a doctor that bulk bills.
    • Choose generic medication.
    Food/drink/shopping
    • Buy bulk or when it’s on special
    • Don’t eat out at restuarants or buy takeaway. Cook at home (healthier and cheaper)
    • Don’t drink alcohol – 23% of adults in Australia do not drink alcohol at all according to the National Centre for Education and Training on Addiction. Depending on how much you drink, doing this could save you $1,000 - $8,000 per year. That a very large amount of money over a lifetime.
    • Don’t smoke ($40 for a pack-a-day smoker is $14,560 per year)
    • When going to the footy, movies or to shows, bring your food and drink.
    • Drink just water. Not bottled water…tap water!
    • Don’t buy a coffee. Make it at home, make it at work or bring a thermos.
    • Bring your lunch to work.
    • Shop at Aldi and buy cheaper ‘no name’ products
    • Always get a receipt when you make a purchase. If I didn’t do this, I would waste hundreds of dollars every year. The importance of keeping receipts are many:
    o With a receipt you can dispute a charge and get a refund for the difference. Even better, at a supermarket under the Scanning Code of Practice they will give you the product for free if they’ve overcharged you.
    o Needed for a warranty claim
    o Verify the purchases on your bank statements.
    o I always look at my receipt at the time I’ve made a purchase on credit card. Sometimes due to a keying error I’ve been charged $60 on a $6 purchase so I have been able to sort it out on the spot.
    Transport
    • Buy an older car rather than buying a recent model or new one. That way, you don’t need a car loan.
    • For car insurance, review and shop around every year.
    • Don’t upgrade your car every couple of years. Stick with it for at least 10 years.
    • Get your car serviced by a local mechanic rather than a dealer.
    • Ride a bike – it’s free, you get fit without the need to pay gym fees
    • Walk – it’s free, you get fit without the need to pay gym fees
    • Take public transport
    • Consider not even owning a car. 10% of households don’t have cars.
    Travel/holidays
    • Look for Scoopon, Cudo and Travel Zoo deals
    • Go camping and choose free sites rather than paying for hotels
    • Holiday locally rather than travelling long-distance
    Technology
    • Don’t buy goods or services that are inflated in price where you can get a cheaper product eg Xiaomi v iphone, Vaya v Telstra phone plans
    • Don’t get the best or the latest brands
    • Netflix and Foxtel subscriptions are a luxury
    • Shop around for an ISP. The most popular ISPs are often the dearest. If you can’t afford internet fees, it’s free at a library or at many places that offer free Wifi.
    Children
    • Using cloth nappies rather than disposable nappies will save you $3,200 per child
    • Take your food and drink with you on family outings eg to the footy or the zoo.
    Miscellaneous
    • I never had a pet (until I retired) – they are a big drain on your finances: food, vet fees, kitty litter, dog grooming, pet insurance, cat/dog boarding fees if you go away
    • Don’t take out life or pet or funeral insurance
    • Buy second hand or at op shops
    • Put your clothes on the line to dry rather than using a dryer
    • Haircuts – I pay $15 each time but people I know spend over $100 and even over $200 on their haircuts.
    • Learn to repair basic things (sewing, basic plumbing/carpentry/car etc),
    Mariner
    17th Jan 2020
    6:24pm
    David - very good advice. Hope some of the young take it, I certainly did not live up to the ideal. If I had I would not know what to do with the money saved. I did smoke for 30 years, I still drink (not as much as I once did). I do stay in motels, hate camping at my age, and I do to to restaurants with friends on occasion. Hey I do not mind paying my hairdresser that $17 every 2 months, she is a nice person and needs the money for the family. But by and large following your advice most people could afford their own place, no worries. But do you know anyone wanting to live like that apart from maybe yourself?
    Farside
    17th Jan 2020
    6:28pm
    David, clearly not all of your values will be shared by everyone, but if you reached retirement at 55 by eking out a living and can reflect without regrets then congrats. Putting four kids through private school and uni is a significant achievement for any parent, however I wonder if your kids shared your lifestyle choices relative to their peers. Not everybody is willing to die without living and experiencing the richness the world offers such as having a pet or travelling beyond your own backyard to experience foreign foods and cultures. There is no doubt these experiences come at a cost but if you can afford it then it's hard to put a price on what they bring to quality of life and something you may be unable to do later in life.
    David
    17th Jan 2020
    7:08pm
    Mariner/Farside
    Thanks for your comments.
    I get it that my lifestyle choice is not for everyone. I'm sure others will have ideas on saving that do not appeal to me. At the end of the day, we all make choices (some good, some bad, hopefully the good ones are more than the bad ones).
    My wife and I sacrificed a lot in our working years and now we’ve retired, we travel overseas a couple of times a year and eat out a lot. Since retiring, I’ve been to Antarctica, South America, Vietnam, China, India, Borneo, Sri Lanka, Thailand etc.. I feel that I am reaping the rewards of my earlier sacrifices.
    I don’t feel I have missed out on anything. I’ve always loved the simple things in life and I much prefer hiking in remote areas than staying in a luxury hotel. Each to his own.
    We’ve travelled all over Australia and have shared some wonderful experiences. You don’t have to spend big dollars to have a great life and great experiences. I believe in the saying “The best things in life are free”. I believe that I have a high quality of life and I am very happy with my life choices. I never look at others with envy or jealousy.
    A lot of the friends I mix with are similar to me are active like myself (bushwalkers, cyclists).
    I never wanted pets and would not have had them if not for my kids. I see them as a burden and not having them for so many years has enabled me to travel extensively for long periods in Australia.
    My kids haven’t followed my path (that’s their call). Only one has got a home before they were 25. They have travelled a lot overseas, but I am sure that they won’t be retiring at 55 like I did. That’s their life choice and they will have to make sacrifices at a later stage in life as opposed to my sacrifices in an earlier stage in life.
    Sundays
    17th Jan 2020
    7:55pm
    David, all good tips. Did much the same out of necessity and it became a habit but have relaxed some of these practices with age and more money. In retirement, travel is important and camping has gone by the wayside. As a woman, I spend a lot more on my hair. Lol. However, the discipline required is too much for many and it annoys me when friends who did not save in their youth now comment on how lucky we are.
    David
    17th Jan 2020
    10:01pm
    Thanks for your comments Sundays.
    Like you, I have relaxed some of these practices as I’ve accumulated more money.
    Yes, it’s easier for a bloke to save on hairdressing. What I save on hairdressing my wife more than makes up for it on her hair. LOL
    I totally agree that many people don’t have the discipline required.
    Like you, I get annoyed when some friends say that I am lucky. When I look back at the lifestyle that these friends had when they were younger, it’s any wonder they are now struggling financially and will have to work for many years to come.
    I believe that unless you had luck like winning Tatts, getting a big inheritance, marrying someone rich (neither of which happened to me), you have to choose which stage of your life you have to make sacrifices. You and I chose the earlier years. Other that didn’t by default have to sacrifice in their later years.
    Anonymous
    17th Jan 2020
    10:47pm
    Listen to Fat Joe - get a good job!! (falls about laughing)
    Anonymous
    17th Jan 2020
    10:49pm
    No matter how hard you do those things, David, you can still be ambushed b y bad wives, bad managers and such.... remember - it isn't a black and white thing of 'work hard -get reward' or 'bludge - get nothing'... many have worked hard and got nothing... back-stabbed time and again.
    Cheezil61
    17th Jan 2020
    12:49pm
    My parents (over 80's) did not have super & did not have to worry about retirement tho they were regular income earners (by no means wealthy) who worked hard all of their lives! Makes one wonder about wage growth (or rather the lack of it) in relation to the cost of living & all the b.s that goes with living expenses, taxes, lack of support, etc. Why is it so much harder for my generation & those following to keep heads above water?. Daily living expenses are too high & wages too low means for most people (inc me) the money all goes on the regular bills & mortgage leaving little for retirement etc. I've worked hard all my life & I do not waste money on pokies, alcohol, smoking, or anything extravagant (My home is worth $250,000 & I drive old bomb cars & shop at op shop for most things rarely buying anything new but apart from having my mortgage recently paid out it is impossible to put money away in savings as things break down & home requires maintenance etc so I live from pay to pay like most people probably do (?)!! I do have some super & would be able to accumulate more of it if I wasn't worn out/broken down old hack from doing hard physical shiftwork for the past 18yrs & was able to keep working til 67 (pension age); but the reality is I will be forced out of this work mentally & physically burnt out by the time I'm 60 so then what? Mr Scumbag Morrison ain't gonna send me some of his dodgy earnings to help out (or let me get an early pension)! Not the lucky country any more!
    Mariner
    17th Jan 2020
    12:59pm
    No need for name calling, with the other mob you still be 60 and applying for New Start or some such. What you generally say is right but it applies to both sides of politics. Maybe the Pensioners Party one day might be different. It was Labor who took us to 67 years pension age, and the Libs gave us a stricter asset test - none of them is a friend to oldies.
    Cheezil61
    17th Jan 2020
    2:45pm
    Ok none of the parties seem to do anything to care about the battlers but I refer to the current PM because they've been in charge way to long & thus should be accountable for putting so many Aussies in to poverty & homelessness like never before!
    Anonymous
    17th Jan 2020
    3:20pm
    Wage growth is one of the causes and problems. The major factor though is miniscule interest rates. Our wages are higher than in the US. Which came first the chicken or the egg.???

    Furthermore males are being factored out of Society via biased education restructure to favour one gender, University based gender imbalanced outcomes and careers, and the Family Court.

    If men are still part of this culture and Society in 20 years i will be surprised. Their claim for balance and support will not get past first base. Supposed 'revenge' will be the governing factor from the ruling Society.

    If in doubt please name me one political or Social initiative that has been a basis of improving life for males. Particularly the young males whose future is tantamountedly derailed.
    Farside
    17th Jan 2020
    3:52pm
    there may be more aussies in poverty and homeless than never before however the rate is well down on what it was during the 50s and 60s when your parents were starting out. Nobody should be surprised with increase in pension age to match increases in life expectancy; most developed countries are already on this track and the LNP desire to increase it to 70 is just a matter of when, not if, regardless who is in government at the time.
    Mariner
    17th Jan 2020
    4:50pm
    Farside - you can increase the pension age to 100 but it does not mean that people can work that long, willing or not. We just end up on the Volunteering heap with New Start supplements. I have a look at all the Vinnies shops around me, most people are not 65 but are volunteering the hours required to get the subsidy. Productive work past 65 is mostly a joke unless you have a desk job and are up-to-date with the PC requirements.
    Farside
    17th Jan 2020
    6:12pm
    Mariner, nobody is suggesting increasing pension to 100 but it won't change the inevitable increase to 70. Dealing with the unemployed in their 50s and 60s will remain a challenge for those on the volunteering heap as well as broader society given the present job situation. Clearly Newstart is not the solution for those unlikely to re-enter the workforce without displacing someone else.

    Going forward there will be increasing numbers of IT literate people with desk jobs however there will also be a greater proportion of workers across a broad range of white collar, health, aged care and education sectors etc working into their 70s. Not everyone is a broken 50 year old after 30 years of hard manual labour.
    Anonymous
    17th Jan 2020
    7:52pm
    The chicken and the egg are costs of living and genuine incomes ... ever wondered why claims for wage rises are for 'cost of living increases'?

    Now - which is the chicken and which the egg? The old saw of controlling wage growth to control inflation etc has not worked and never will, given that wages always pursue costs of living - anyone for cost of living control as the remedy?

    (That'll be the day!)...
    Mariner
    17th Jan 2020
    12:54pm
    Millennials might also have a look how the Boomers are treated now - the more you have saved the less you get on the pension. The old folks around here are telling the young ones the facts: get yourself a house and do not bother with too much superannuation. Do not save like we did all these years and doing without to virtually see ourselves on par with full pensioners with a concession card.
    Cheezil61
    17th Jan 2020
    2:53pm
    Yes
    Farside
    17th Jan 2020
    3:55pm
    if you spent a little more of your savings then your quality of life might improve and you could see yourselves doing much better than par with full pensioners with a concession card. Perhaps reread the article https://www.yourlifechoices.com.au/retirement/retirement-planning/you-dont-need-1-million-to-retire#comment-719597
    blue trumpy
    17th Jan 2020
    1:04pm
    Reading Scott Pape's 'The Barefoot Investor' should be made compulsory reading for all high school students.
    Farside
    17th Jan 2020
    4:00pm
    Plenty of things should be in the already crammed high school curriculum but it is incumbent upon parents to ensure those that are not are taught to their children, e.g. financial literacy, civics, everyday law etc.
    Incognito
    18th Jan 2020
    3:38pm
    I agree blue trumpy, great book, he is now helping bushfire victims with their house insurance.
    blue trumpy
    17th Jan 2020
    1:04pm
    Reading Scott Pape's 'The Barefoot Investor' should be made compulsory reading for all high school students.
    KSS
    17th Jan 2020
    3:57pm
    I have to say I like his book too. There is another one he wrote especially for families. Perhaps parents should start with that one.
    jan
    17th Jan 2020
    1:06pm
    No. I say to my kids pay off your mortgage first.
    Happy
    17th Jan 2020
    4:35pm
    Indeed,build a buffer at least.5 years min.
    pedro the swift
    17th Jan 2020
    1:21pm
    All "systems" are designed to keep the most of the population just above the poverty line. Just enough to keep us going but not too much so the "elite" miss out on accumulating wealth. Too little and there is a cause for a revolution al la France and Russia.
    Thats why we have a "middle class". They are the ones with just enough to think they will get richer so continue to keep their heads down and keep the "system" running.
    If they ever wake up, then watch out!
    Cheezil61
    17th Jan 2020
    2:46pm
    Spot on!
    Anonymous
    17th Jan 2020
    7:53pm
    Historically all revolutions have begun with the middle classes - feeling they were missing out on their fair share for their efforts..
    JoJozep
    17th Jan 2020
    1:29pm
    I spoke earlier of making a plan and sticking to it. This may sound simple, but could be difficult to achieve the desired outcomes.

    As a simple guide, here are some major phases you could consider.

    1) Earnings. Is your job paying you well. If so, you owe it to your boss or company to repay them in kind by helping to improve company profits. If not, time to examine what you do, what you need and what you can find elsewhere. Job credentials can be improved with good learning and part time courses. The more experience you have, the more sought after you will be. Many companies train their staff on site, make sure you take maximum advantage of this where possible.

    2) Savings. The more you can save, the more money you can accumulate for the future.

    3) Investment. When your ability to save stops, your earlier savings and investments should be enough to carry you through to the grave. Keep abreast of government assistance packages.

    4) Expenditure. The more you spend, the less money available to save and invest. Refer to my alphabet above of how to minimise expenditure.

    I suggest you do a spreadsheet using Excel or similar, noting the above 4 categories, 1 per page and interconnecting them on a monthly basis. The 5th page could be a summary of results, which can be mapped and indicate precisely whether you are improving or falling behind.
    The amount of work once set up, to maintain will depend on how much detail, but the more detail, the better at pinpointing expensive changes, and what you can do to correct the situation. Suppose for example, you have three young children starting a new school year. A one off (possibly for a year or two) is a new school uniform including shoes. This could easily set you back $250 per child, or$750. This one expenditure amount will make your chart for the month of February spike. When your overall performance is checked say in three years hence, your records will show you why your yearly expenditure was so high.
    Ditto, with things like Birthday and Christmas presents. I'm not suggesting you be a scrooge, but you should know your yearly expenditure. The chart will also pinpoint totals and averages, on a daily or weekly basis, depending how detailed you make the spreadsheet. Only once did I exceed the spreadsheet's capacity to accept formulas, and that was the 2003 version, which I'm sure has been improved since.

    Another big advantage will be around tax time, for there will be a precise record of what you spent and on what in earning your income. The spreadsheet can also calculate on a year by year basis, what your return will be at any time as well as predict under current conditions what you should expect as total returns at retirement age. You can update weekly or monthly, but any longer and you will forget details. Also it may help you avoid expensive "luxuries" like drinks and smokes. I gave up smokes 15 years ago when a packet was around $2.80, smoked one packet per day or $20 per week Now I believe it's $280 per week. If I was putting this money into savings and earning 5% per annum and I started at thirty and retired at 65 say over 35 years, my initial outlay would be worth (with compound interest), as per chart below. A staggering $1.3 million (plus)

    Year Spend $280/Wk 5% interest/year compound interest
    year 1 $14,560 $728
    year 2 $29,848 $1,492
    year 3 $45,900 $2,295
    year 4 $62,755 $3,138
    year 5 $80,453 $4,023
    year 6 $99,036 $4,952
    year 7 $118,548 $5,927
    year 8 $139,035 $6,952
    year 9 $160,547 $8,027
    year 10 $183,134 $9,157
    year 11 $206,851 $10,343
    year 12 $231,753 $11,588
    year 13 $257,901 $12,895
    year 14 $285,356 $14,268
    year 15 $314,184 $15,709
    year 16 $344,453 $17,223
    year 17 $376,236 $18,812
    year 18 $409,608 $20,480
    year 19 $444,648 $22,232
    year 20 $481,440 $24,072
    year 21 $520,072 $26,004
    year 22 $560,636 $28,032
    year 23 $603,228 $30,161
    year 24 $647,949 $32,397
    year 25 $694,907 $34,745
    year 26 $744,212 $37,211
    year 27 $795,982 $39,799
    year 28 $850,342 $42,517
    year 29 $907,419 $45,371
    year 30 $967,350 $48,367
    year 31 $1,030,277 $51,514
    year 32 $1,096,351 $54,818
    year 33 $1,165,729 $58,286
    year 34 $1,238,575 $61,929
    year 35 $1,315,064 $65,753

    I wonder how many of today's young consider this? Here is one simple item of expenditure that can be cut out without causing any financial pain, improve health immeasurably , and provide enough money to buy a decent house. Just by stopping smoking. Note, I have based this on today's prices, God knows what a packet of cigs will be worth in 35 year's time.
    Anonymous
    17th Jan 2020
    7:55pm
    If you can sidestep all the social engineering minefields for men these days - you may come home safe... and stand a-tip-toe when any speak of St Crispin's Day...
    Happy
    17th Jan 2020
    1:38pm
    When young you like to live and party and holidays.I learned value of money when 67 just in nick of time.now 70 retired and count /check my $.every time.and going ok.overseas travel is canned.
    But he, Australia is a nice country and lots to see.
    Cheezil61
    17th Jan 2020
    2:40pm
    When i was 18 in 1979 & in my 20's (& probably into my 30's as well) it was possible to manage on the 'dole' if you couldn't find work as things were more closely balanced (income & expenses) whereas things seem to have got tougher in the last decade or 2, in that the basic living costs are now uunaffordable on the dole/Newstart I believe unless you live with parents or others maybe.
    Happy
    17th Jan 2020
    3:13pm
    People who loose their job when 60 years ar left in limbo and find it very hard to find employement.
    Employment agencys got me back in the workforce with plenty work till retirement.
    However not always in my profession.But battled on and made it till the end.
    Incognito
    18th Jan 2020
    3:42pm
    Yes you could at least afford a roof over your head and some food, but now more and more people are becoming homeless, in USA you can even have a job and be forced to live in your car, housing is out of hand, we really need something done about it.
    Rae
    20th Jan 2020
    9:36am
    That's the problem with more and more people right there musicveg. The west was desirable because of family planning and the fact we had great lifestyle,. So we imported the overcrowding causing problems and resource shortages in other countries quite deliberately.
    Farside
    17th Jan 2020
    2:45pm
    "a dignified retirement" is such a loaded statement, I have met many retirees with plenty of money who are anything but dignified. In contrast I have met many war gen retirees who lost everything not once but twice and never quite returned to prosperity, yet they quietly received their pensions and lived graciously with dignity and making positive contributions to their families and community well into their 80s.
    Happy
    17th Jan 2020
    2:57pm
    You correct in my opinion.

    17th Jan 2020
    2:51pm
    Well I and my wife are self funded retirees. That is through responsibility and self accountability. The way I see it is that the pension is good for those that genuinely deserve it. There are others that have irresponsibly spent all their savings and opportunistically, and some intentionally, spent all their money so that they get a pension.

    Furthermore females will have no worries in the future because the education system has been restricted and re-frameworked to ensure females get the best results, obtain the University qualification, and the resultant careers. Boys have been ignored. Even have the framework laced against them. Education outcomes prove it, but Society lacks the intestinal fortitude to admit it's actions, it's outcomes, or the need for correction. To admit the gender bias and intention, would be, no make that 'IS', Social and Governmental suicide.

    It is far over due that the intentional imbalance in gender, on the outcomes of education is corrected.

    Men presently do, and in the future will continue to face retirement outcome difficulties, while the 'protected species' will flourish.
    Happy
    17th Jan 2020
    3:03pm
    Not all retirees & young have the same Frame of mind.
    Anything called After is eazy wisdom.
    Anonymous
    17th Jan 2020
    10:53pm
    I'm pleased to say my son, a tradie, works hard, saves his money, drinks two beers on Friday night, and now effectively, through his work ethic and skills - is receiving a double pay packet. It seems his boss isn't one of those mental deficients who feel that anyone who does the work better than they ever could is somehow a danger to them... he's happy to say 'three days work - you've done it in two - keep the money!'

    Tell me again how some people get a job as a boss?
    Crimmo
    17th Jan 2020
    2:53pm
    There is a large number of self employed people and bogus sub-contractors who do not have compulsory superannuation, which the government chooses to ignore. This will bite big time in 30 years.
    KSS
    17th Jan 2020
    4:05pm
    Yes but there is nothing stopping the self employed and contractors making their own arrangements for retirement funding. They just choose not to.
    Rae
    20th Jan 2020
    9:45am
    It will bite them if they ignore saving for retirement in a steady way. You can't overcome lack of foresight and willpower though and never could.

    Possibly aged pensions won't exist if tax cuts continue and those who value some social safety nets decline in numbers being replaced by those from countries where independence is the norm and welfare is a family responsibility not something others provide for you.

    Nothing is surer than change and we are in a time of enormous changes being forced onto us.

    Perhaps an education program or a few ads targeting the self employed might help but it is hard to make spendthrifts see any sense of saving and always has been.
    ex PS
    20th Jan 2020
    4:55pm
    Crimmo, if the self employed choose not to have their own retirement arrangements that is on them. They gain nothing by doing so and will pay the price.
    They will probably retire decades later than the rest of us and find it harder go live on a pension.
    Crimmo
    17th Jan 2020
    2:53pm
    There is a large number of self employed people and bogus sub-contractors who do not have compulsory superannuation, which the government chooses to ignore. This will bite big time in 30 years.
    Farside
    17th Jan 2020
    2:59pm
    Super Review shamelessly spruiks shares on the basis ‘that between 1900 and 2010 the Australian stock market saw 11.8 per cent growth per year' but where is the qualifying statement and warning that past performance is no guarantee of future results?
    Anonymous
    17th Jan 2020
    10:54pm
    Likely to see an 11.8% decline annually from now on...
    Farside
    19th Jan 2020
    4:18pm
    I see that glass of yours is still half-empty Trebor.

    17th Jan 2020
    4:04pm
    "with more women (59 per cent) being concerned than men (47 per cent)."

    Hey Mr Della Bosca, what is the above quote supposed to mean. With couples women generally outlive the men. So women inherit the balance to divide for use by one person, rather than the previous two persons.

    I mean gender based logic in our Society is out of control.

    I am sick of it.
    Pammy the original
    17th Jan 2020
    7:08pm
    And I am sick of silly old sexists with chips on their shoulders. Where is your evidence for any of this nonsense?
    Anonymous
    17th Jan 2020
    10:54pm
    Is that the 72% of men and 61% of women who would retire with only the pension... from a study about five years ago.... thinking caps, people.
    Anonymous
    18th Jan 2020
    8:26am
    Pammy you would be. You are one of the licensed beneficiaries. And who has the 'chip on shoulder'.

    It is either a 'chip', or simply hatred of men by women.

    Men are not the ones at fault for decimating the other gender. And thanks for using the term 'old white men', with a collective referral to sexism.

    Misandry is the dominant terminology, governed by self promotion for producing little but wanting everything.
    Just a lass
    20th Jan 2020
    4:38pm
    Some woman must have hurt you real bad Olde
    David
    17th Jan 2020
    5:06pm
    My main priorities when I first started working in 1981 was to save for a home, contribute to super and plan for my retirement, which enabled me to retire at 55.
    Happy
    17th Jan 2020
    5:09pm
    David, a long list of advice. I can do better.

    Cut my own hair,save $15 A HAIRCUT.
    David
    17th Jan 2020
    5:23pm
    Good one.
    Or go bald LOL
    GOW
    17th Jan 2020
    7:04pm
    As long as the Government of the day keep moving the goal post no planning or preparing can get you where you want in retirement.... I have decided to wait for the 00/00/20-- that I am ready to make decisions for my future to see what the Government O T D is deciding they will allow me to do...........RED TAPE and NO PRIVACY is the now and into the future and we don't seem to be able to fight it! Unless you the means to beat the system........?????????? good luck to you.
    Paddington
    17th Jan 2020
    8:59pm
    A lot of the comments assume nothing goes wrong. People do not always have full employment. People have health issues that prevent them amassing a fortune. Families often struggle to put food on the table, get everything the kids need for school, and are often already doing without what others take for granted. Parents make sure their kids are okay first then there is nothing left to cover all their own needs let alone save money that is never touched. Life is not ideal for all.
    Anonymous
    17th Jan 2020
    9:58pm
    Finally, thanks Paddington, someone has noticed "A lot of the comments assume nothing goes wrong." - I agree, people overlook that luck / fate delivers different results for different people even if they all worked, or tried to work, equally hard or equally smart.

    Other than that, Govt interference, tampering of rules and bad policies (by both major parties) - is a major issue for those dependent on Govt support.

    I also like David's comment "My main priorities when I first started working in 1981 was to save for a home, contribute to super and plan for my retirement..." - this article by a Financial company keen to promote investment in Shares, has ignored a key aspect i.e. saving to get your own home. In fact, property as an investment for your future has been completely ignored by these people who want to push share-market investments.
    Triss
    17th Jan 2020
    10:10pm
    You’re so right, Paddington. Have you seen how many companies and chain stores are closing? All the employees will have a hard time getting other employment.
    Anonymous
    17th Jan 2020
    10:56pm
    That, Triss, is the actual disaster in progress.. it just looks to the casual observer like a slow collapse..
    Rae
    20th Jan 2020
    10:00am
    Especially when they insist on private schooling and all sorts of other expensive add on for the kids. None of which is really needed if you can't afford to also save a bit for the future.

    I watched friends also upgrade home after home and car after car for no real reason apart from lifestyle and image. Now they complain that the aged pension just isn't enough to support the huge house in the expensive suburb but they don't see why they should have to move.

    It is time to be cautious of sharemarket salesmen now. The time for buying was back in 2009 to 2012 when prices were down and the currency up. These sales pitches hit peaks at the tail end of booms as some develop fear of missing out. If you aren't in you have missed this cycle. It's time to look to profits and rebalance ready for the next correction.

    Which may be a way off as the bankers and sprukers of shares talk the markets up.
    Paddington
    17th Jan 2020
    8:59pm
    A lot of the comments assume nothing goes wrong. People do not always have full employment. People have health issues that prevent them amassing a fortune. Families often struggle to put food on the table, get everything the kids need for school, and are often already doing without what others take for granted. Parents make sure their kids are okay first then there is nothing left to cover all their own needs let alone save money that is never touched. Life is not ideal for all.
    Paddington
    17th Jan 2020
    9:05pm
    $500,000 in savings, what a joke!
    This is unrealistic for a lot of people and makes some feel hopeless.
    If you have a roof over your head, food in the fridge, family you love, and can make it through the week happily you are rich.
    No wonder people feel inadequate. Values are wrong. Wealth is not what makes your life worth living. It is family and a home and enough. So long as you can see the way ahead it is fine.
    Yes, teach the kids to save. Many on here save from their pension. Show by example. But be realistic!
    Anonymous
    17th Jan 2020
    10:59pm
    Of course! Fifty year working life - save $10,000 a year every year out of your income that worked steadily from $5000 pa to $80,000 - while paying off your home, car and everything else while enduring periods of unemployment and under-employment and divorces and so forth .. no problem,Chief!!

    What kind of a dream run have some of the people who casually discuss such things been on? Fat Joe's?
    Sundays
    18th Jan 2020
    9:33am
    You would be surprised at the amount of money wasted over a lifetime on smokes, drink and gambling, not to mention the ‘latest’ must haves!
    Mariner
    18th Jan 2020
    9:58am
    Sundays - some people do not consider it a waste. I agree with you but! I smoked for 30 years, when I started in 1961 a packet (20) was 14c. And yes, I still drink quite a bit and never gambled (apart from having a go Sat evening Gold Lotto.
    Who can afford to smoke in this country these days?
    David
    18th Jan 2020
    12:11pm
    $500,000 is easily saved (or wasted) over a lifetime on smoking, drinking alcohol and gambling. Figures I got from internet show that the average spend per annum per capita on gambling is $1,000, smoking $14,000 (based on a packet a day) and drinking alcohol $1,000 - $8,000. When you remove the non-gamblers/smokers/drinkers from these per capita figures, the $10,000 pa ($500,000 in a lifetime) spend is conservative and it would be over $20,000 pa for heavy gamblers/smokers/drinkers. When you take into account the compounding interest effect that JoJozep has calculated in an earlier post, the choice to smoke/gamble/drink is a multi-million dollar decision.
    I agree with Mariner that those that smoke/gamble/drink alcohol may not consider it a waste, but in making those life choices, smokers/drinkers/gamblers can’t complain when they are stuggling on the pension or have to work much longer than others.
    Paddington
    19th Jan 2020
    1:23am
    Not everyone drinks and smokes or dines out. When you are raising a family many would not have any money for beer. People earning low to middle income have nothing left after feeding, clothing and educating their children. Lots of us are better off on the pension than any other time in our lives. You have a set amount of money and limited bills so it is not hard to budget.
    David
    19th Jan 2020
    7:52pm
    Paddington, you said that “People earning low to middle income have nothing left after feeding, clothing and educating their children.” So are you seriously saying that only families on high incomes can afford to drink, smoke, dine and gamble?
    Take a wander into a low income area (go into the supermarkets, tobacco shops, take-away shops, TABs, pokie clubs and liquor shops) and you will find that there is a disproportionate number of people there (including families) that frequent these places.
    Often their gambling/drinking/smoking addictions force them to go into debt and/or cut back on necessities like food.
    Sadly these poor life style choices will keep many of them in their poverty cycle for life. Many will never be able to afford a home or contribute sufficient funds to super.
    Sadly there is a disproportionately high proportion of low income people addicted to alcohol, smoking and gambling.

    I suspect that you are not going to believe what I have said, so I have provided evidence (including links) from studies, surveys and research confirming my points.
    “The poor spent less than those with higher income on alcohol and tobacco, but the expenditure constituted a much larger slice of their income thus compromising their ability to meet basic needs.”
    “For decades it has been known that tobacco and alcohol use are more prevalent in lower socio-economic groups of society (those with low educational achievement, compared with people with further or higher education qualifications). Tobacco and alcohol use is particularly high among the unemployed, either temporarily or long-term… Poor people spend up to 20% of their income on tobacco.”
    “Research in the UK found that nearly half of all children in relative poverty in 2012 had at least one smoking parent.”
    “Most of the country has quit smoking, saving millions of lives and leading to massive reductions in cancer. That is, unless those Americans are poor, uneducated or live in a rural area.”
    “They allowed him (the betting shop allowed him to drink and gamble) because gambling is an industry that feasts on the poor and vulnerable to survive.”

    https://www.tobaccoinaustralia.org.au/chapter-9-disadvantage/9-5-smoking-and-intergenerational-poverty

    https://www.theguardian.com/commentisfree/2017/sep/05/gambling-industry-feasts-on-poor-vulnerable-helen-pidd

    https://www.ncbi.nlm.nih.gov/pubmed/16926658/

    https://www.ncbi.nlm.nih.gov/pubmed/21219500/

    https://www.washingtonpost.com/national/americas-new-tobacco-crisis-the-rich-stopped-smoking-the-poor-didnt/2017/06/13/a63b42ba-4c8c-11e7-9669-250d0b15f83b_story.html
    Incognito
    19th Jan 2020
    8:01pm
    I saw a doco about how the betting, alcohol, fast food and pokies are more prevalent in low income/socio communities, so they definitely make things worse. If there were laws to stop them targeting the vulnerable and disadvantaged by not being allowed to open up these types of venues that keep them poor, it would make things so much better.
    David
    19th Jan 2020
    8:44pm
    Musicveg, yes it's terrible that the vulnerable are disadvantaged and preyed upon. And apart from the financial impact on the poor, the alcohol, fast food and smokes will result in many health issues, which are more difficult to resolve on low incomes.
    I know that pokie venues are often located in lower socio-economic areas.
    In my former working life as a CPA Accountant, I had to examine the records of car dealers and it is no surprise to find that the people living in wealthy suburbs in most cases pay less for their cars than those in poor suburbs (mostly due to negotiating skills). It’s crazy that the people that can most afford a car pay less.
    Paddington
    19th Jan 2020
    9:35pm
    David, we had the equivalent of today’s $60,000 with which we educated our children and fed and clothed them as well. We would rob Peter to pay Paul to keep afloat, a balancing act. No beer, no cigs, no dining out and it is why we manage on the pension now. We own our home, drive an old car and think the pension is pretty good lol. We have others in the same boat except they do not own their own home they pay rent so we consider ourselves lucky compared to them. Not only was it impossible to save for many years we had to be very frugal to get by. If you can stay out of debt for a lot of people then that is the goal.
    There may be wasters but you cannot assume that. It is what it is!
    David
    19th Jan 2020
    10:11pm
    Well done Paddington for you to be able to raise a family and pay off a home on a relatively low income. You sound like you are very sensible and wise with money. It’s a credit too you.
    You are a great example that if you are responsible with money and haven’t wasted it (on things like beer, cigarettes, dining out, new cars etc) then you can live a comfortable lifestyle in retirement on the age pension.
    I agree that it’s important to stay out of debt. I only buy things on credit card if I can pay it off in full when the statement arrives. I’ve never borrowed for a car. Like you, if I don’t have enough money, I just get an older car than the one I was hoping for.
    You say you are lucky. Luck is when you win Tattslotto or get a big inheritance. You instead have worked hard, gone without a lot and been very responsible. In my opinion I don’t call your situation lucky….I call it great management!
    Enjoy your retirement mate. You have well and truly earned it!
    Incognito
    18th Jan 2020
    3:47pm
    I never knew how to use the stock market and still don't, wish I did but do not even know where to start and who to trust for advice. My advice to myself would have been I should have bought a house when I was 18 and had a good job instead of going travelling, but at least I had the experience early ( interstate and went overseas when I was 23).
    JoJozep
    19th Jan 2020
    2:32pm
    Hi everyone on this post!

    I read with interest the outcome of my posts above, and thanks to those who understood where I was coming from. I would like to post another comment I made dealing with retirement savings and what happens along the way, so this comment below will appear twice. I hope that by sharing my advice, it will correct or present a balanced view to any lifestyle that follows today's acronym,- live now pay later!

    The simple answer is, plan for your retirement while you’re young (30+) What could go wrong along the way to retirement? Plenty, here are some possibilities.

    1) working age say 30-65. You lose your job. This usually occurs through no fault of your own, but your business masters didn't make enough profit, so they close down the business and start something else. In the next three-four years, you bump along taking any job you can find, working a few months a year. The only way the average family survives is if the alternate breadwinner (usually the wife) keeps up with living expenses, sending kids to school and pay all the ever increasing Federal, State and Council charges, not to mention energy and insurance rates.

    2) You go through a natural disaster -bushfires, floods, storms, cyclones and the like.

    3) You or your partner develop a serious and long term sickness or disability.

    4) Some low life burgles your house or even sets fire to it while your basking on the beaches overseas.

    5) You bought a house (not a bad thing in the long run) and unwisely sought an expensive loan with expensive repayments, usually takes at least 15 years to turn things around, and 10-15 years to finally pay it off. So advice here is critical.

    5) You suffer a major accident, be it in your car, at work or playing sport, - your income stops for a while, could be years.

    6) The war lords send you to war to fight for your country. Usually a personal and territorial war you had nothing to do with. Your income could and usually does, drop dramatically. Bad luck if you don't return! You may get a posthumous wreath supplied by the government! If you return injured, no one really cares (except Veteran's Affairs). You could be disabled, hard to find a job.

    7) You believe the BS bandied about by money lenders (including all the Banks) and buy now pay later cards abound because they can charge 15-20% interest you don't notice in small amounts as this is hidden in fine print long enough to make a lawyer wince. You could be shoveling a quarter of your hard earned after tax savings, to feed the ultimate rich the CEO's and board members of these institutions.

    All the above and more are some possibilities, there are others. As you move from one decade into another, and obviously age, you need to maintain a savings regime to cover your future commitments. The scenario you may face, despite being lucky and none of the above factors affected you or at least if they did, were to a manageable extent are:

    a) You are now both around 65 and house paid off. You start dreaming of living it up for the next 20 years or so. You have no debts to speak of. Your kids got a good education, married settled and own their own homes. You still need an income of some sort, the pension (assuming you qualify) may not be enough to cover your daily living expenses. That's the good part.

    b) What you don't foresee is if one of the partners requires care in an aged care nursing home. Hold onto your seat!
    The prices can be very high..
    You can go cheap:- You get a basic bedroom and that's it. It may or may not have a private bathroom and toilet.
    This will set you back on average entrance RAD (Refundable Accommodation Deposit) of around $550,000 plus ongoing monthly fees of around $1,600 if subsidized by DHS. The food can be slop as seen by the recent Investigation Commission into Aged care and no frills, no views, smelly, and worst of all, a support staff ratio of 1:35. Too bad if you need help with toilet, etc., pressing the buzzer can leave you waiting up to 45 minutes, till someone comes. Too bad if your incontinent.
    Or you can go medium:-You pay $800,000 to $1,400,000 RAD and $4,000 per month fees. You do get a small 1 bedroom apartment with small lounge, dining area and separate disabled toilet and shower, plus a staff ratio of about 1: 6.
    If you live there 20 years, the interest you pay on the RAD (say $1,000,000), at 7% per annum is compounded and comes to: $3,616,528 and interest paid $253,157. So the Aged care Home makes $2,616,528 plus $253,157 on your money. When you die, your beneficiaries get $1,000,000 back.
    Meanwhile, the tax man gets at 30% average $860,905.50 for doing nothing!. In fact they allow the home to charge $2,100 in their fees per month for three years inbuilt into fees, that's $76,500 . Not bad ScoMo! Who pays? you guessed it, the unfortunate pensione
    Incognito
    19th Jan 2020
    2:41pm
    Thanks for posting JoJoZep, a real insight into possibilities and outcomes, everyone's situation is different and we need to stop attacking those who have not been able to finance their own retirement, sure there are the lazy ones but I think percentage wise most people are hard working.
    JoJozep
    19th Jan 2020
    3:03pm
    Thanks MusicVeg.

    Please note, far from criticizing those unfortunate enough not to save for their retirement, I know many, young people who have gone through life as if retirement will never come. They have squandered their money on booze, smokes and sex (possibly) and are now faced with despair!. These people never listened to advice and what can I say, I can no longer help.
    Just a lass
    20th Jan 2020
    4:21pm
    All.. I usually have a read of the comments each day and don't feel compelled to respond but today is different. There seems to be a bit of virtual women bashing going on ! Why? 50% of the population is female also approaching/ reached retirement. Also approx 50% of marriages in Australia end in divorce, so there are many women out there...some financially secure, some not who have the same concerns as the men about how they are going to finance retirement. I am lucky that I have marketable skills and have been salary sacrificing like mad since divorce so that I can support myself in retirement. Others are not so fortunate as they have been stay at home mums and have found it hard to find well paying jobs/support themselves financially and start again. So please lets all be aware that many people have many different situations and try to not to make assumptions


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