Dark days for retirees in trillion dollar shortfall

5 responses to “Dark days for retirees in trillion dollar shortfall”

1. 

   mark thompson

   September 14, 2012

   Hey, it really makes sense that the Government has reduced concessional contributions for older Australians. I’m not talking 50 year olds, I mean those 60 and over. The 60 year olds have a limited window of opportunity to top their retirement savings. The double whammy for some is that they also need to make up the losses created by the GFC. An extra $25,000 of concessional contribution if left untouched for 20 years and earning a consisten 6% (untaxed) will add another $68,000 to the retirement pot. What about a concessional contribution I hear you cry? Well where is the fairness in that?

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2. 

   Damian Ebzery

   September 14, 2012

   It would be interesting to see a study into whether working longer actually contributes to living longer. My experience is particularly with males, when they retire many lose direction, their health fails and they end up dying. There is much to be said for feeling useful on way or the other money matters aside. In the end I guess it is whether you continue working because you have no other financial option or you continue to benefit from the social aspect of being more involved continuing to be in the workforce for other mental health reasons.

   Money doesnt guarantee happiness.

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3. 

   David Williams

   September 7, 2012

   With respect, the first two comments show how difficult it can be throw off the prejudices of the past. The community response to older people working needs a real wakeup call based on reality and responsibility. It must not be sidetracked by outdated thinking.

   There is plenty of reliable evidence to show many ‘older’ people make decisions better (based in part on experience), are more reliable and are as adaptable as many younger people. They are particularly a resource the community cannot afford to waste, especially with the looming longevity-induced budgetary problems.

   The FSC paper is very constructive but as well as restricting access to superannuation I would have also liked to have seen suggestions to more fairly manage access to the Age Pension to those most deserving of it. Age and assets alone are an outmoded basis for allowing access anyway and age in particular sets unrealistic retirement date benchmarks for the community.

   A recent paper for the Human Rights Commission by Deloitte is also worth a read. It shows there is already a rising trend of those older people who can or must work longer continuing to do so and offers constructive suggestions to support this trend.

   We need to devise an integrated response to older people working, with better policies and perhaps more appropriate incentives. We need to discard old-fashioned and ignorant attitudes about people staying in work longer than they used to. After all, we are living a good deal longer too and in many cases, in pretty good shape (based on our research).

   Advisers are well placed in the community to reinforce the importance of more older people continuing to work if they can.

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4. 

   Bob Budreika

   September 5, 2012

   Sue, I agree. As an employer having the choice of employing a younger person or someone who is say, 60 +, I’d go with the younger. They are generally much more tech savy and keen to work. How would a small business manage with an older person who had health issues or was perhpas reluctant to upgrade their skills? Technoligal changes are moving at a pace that few of us can keep up with let alone an older person. I belieive the idea of older people working longer is really wishful thinking which makes the retirement income issue an even bigger problem than we think

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5. 

   Sue Allen

   September 5, 2012

   Working longer is fine provided there are appropriate jobs for older Australians. Dealing with the physical and emotional stress of working to an older age is already showing up in workers over 60.

   Maybe the Govt should immediately scrap all tax on super contributions and earnings as a way to boost super savings. What they are doing in taxing super is robbing Peter to pay Paul, ie having the money now and hoping that the future will take care of itself!

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