As
Aussie as boardies and barbies, the implied ‘inaction’
behind this saying can be very costly.
We all grew up with the same set of values passed down
from our parents. All we needed to do to ensure a comfortable
life in retirement was to work hard, do the best for
our family, save what we could towards the future, and
between our company super and the age pension from the
government, we’d be ok.
For nearly 90% of all Australians, reality is that
it doesn’t work out that way. Most people end up retiring
in a situation they would never have dreamt possible
all the way through their working lives.
So why isn’t the age pension enough?
The age pension was introduced 100 years ago and was
set to provide the equivalent of 12% of male average
weekly earnings. In 1974 the government increased
this to 25%.
What this means today is that the current single
age pension is $281 per week, and for couples,
a share
of $463 per week. This is an annual $14,612 for
singles, and $24,076 for couples.
The ‘lucky’ retirees own their homes, and
can sell the property or draw on it to support income.
The list of core expenses to be paid each month
includes:
- Food
- Electricity
- Water
- Car expenses including petrol
- Clothing
- Medical and health costs
Meals out, entertainment and gifts become luxuries
that can no longer be afforded. Many people
fall back on public
transport.
The real sadness is that most people only discover
the situation that they will face when it
hits them and it
is too late to do anything about it.
At McCarthy Group, our philosophy is to carefully
work through a financial analysis with
families so they
can face the realities of the future while
there is still
time to make an effective plan.
We work out your current situation, the
lump sum you will need in the future
to maintain
your desired
lifestyle,
and then develop a concrete strategy
that launches you on your way. This is then
repeated over
time and eventually
enables you to become the master of your
own destiny.
The bottom line is, don’t wait until it’s
it too late. And don’t say, “She’ll
be right, mate”. Because all the statistics say
that she won’t.
|
