Pension age increase may see unemployed or sick Aussies struggle
Having a robust retirement plan, superannuation and sound investments are more important than ever. The Australian government’s plan to increase the pension age to 70 could cause financial struggles for some. If you are relying on a pension as your sole source of income, this could affect you and your retirement plans.
These golden years should not be full of worry and financial stress for anyone. Hillyer Riches’ certified financial accountantscan assist you with setting financial goals, implementing plans and give you the advice you need so that you can retire the way you want.
According to the NATSEM Research Report – less than half of 60-74 year olds will still be working in 2035. The report also mentioned that poor health will affect at least 25% of Australians over 60, this will put their ability to save for retirement in serious doubt. Medical bills, medication, and less income could all contribute to this.
The report uncovered that by 2035, the majority of retired or unemployed Australians in their 60’s will not have enough money saved in their superannuation to support their retirement. If the government raises the pension age to 70, many of these Australians will be forced to work longer to have enough income or to build more equity in their savings accounts.
This ability to work longer has a direct relationship with health. Many workers over the age of 60 can only work part-time and have sustained good health. This report concludes that the answer may lie with the nation, government and employers to creative supportive frameworks and environments to ensure future generations can transition into retirement smoothly without sickness or financial stress.
Planning early can play a major part in your financial ability to retire without worry. If you would like to talk to someone about your self managed superannuation fund, or have any other questions, please give our Caulfield tax agents and other advisors a call.
** This information based on the AMP.NATSEM’s report Going the distance — working longer, living healthier and article by Nathan Hewitt.
Hillyer Riches Management Pty Ltd is a Corporate Authorised Representative (No 466483) of Capstone Financial Planning Pty Ltd. ABN 24 093 733 969. AFSL / ACL No. 223135.This document contains general advice only and is not personal financial or investment advice. Also, changes in legislation may occur frequently. We recommend that our formal advice be obtained before acting on the basis of this information.