The current cost of living will ensure most Australians will retire poor!
There will be over 7 million retirees and welfare recipients compared to approximately 12 million working Australians during the next 15 years. That means that the working Australians will end up paying more income tax to pay for these pensioners and social security recipients. Most people retiring today will live into their late eighties and with medical advances our children will live well into their late nineties and many will be over 100 years old. . How will the future workforce pay for this? We are paying huge taxes during our lifetime already and we will get nothing for it.
The shock however will be the galloping medical costs as the mortality rate increases year after year.Just take the increase in cancer patients which is costing the government an enormous amount of money right now. Think about this - each radiation and chemo therapy patient cost the government around $500 000 right now. Multiply that by the increasing number of patients and the money budgeted by the government for medical is dismally inadequate. The medical system will have to make some serious and tough choices in the future. Imagine this scenario - you are a 60 year old patient with a 25% chance of survival after Chemo and Radiation treatment and there is a 29 year old with a 40% chance of survival . Who will get first preference? If you think this will never happen - look at the list of the number of elderly people in discomfort day after day waiting for a hip replacement these days! Of course the government will never admit they will be faced with these choices - how can they - it's inhumane. Make sure you have private medical just in case or else you will have to sell your home to pay for the high cost of medical treatment in your retirement.
Many people just cannot grasp the reality that our money dramatically devalues over time and many of us will have to live abject poverty. For example: $120,000 of cash savings and Superannuation today will only be worth $60,000 in 20 years time. So if you are retiring today and you think "I'll be right mate, I have enough to live on" you are wrong. With the current inflation rate increasing at a steady rate, a loaf of bread that may cost $4.50 today will cost over $13.00 within 20 years. Imagine what it will be like when you have to Queue up for old bread because you can't afford fresh bread. In fact, with living expenses being what they are right now, there are reported cases of retirees freezing to death in their own houses in parts of Victoria and NSW because it costs too much to switch the heaters on. Retirees are going to live into their eighties and nineties and they barely have enough Super to survive for a few years after retiring. Ultimately, it comes down to merely existing until the day they die rather than living and enjoying their lives as they dreamed they would do. If someone had told you when you started working that your fate was to work hard for the next 40 to 50 years and retire in poverty I wonder how motivated you would have been back then?
Many Australians have the “The government will have to look after me” financial plan . Please do not rely on the government to support you in your retirement - they don’t have the money! It will not be “right mate". Some of my clients say "Well I will just have to continue working until the day I die". Well that is not going to happen either. Over a third of retirees today had to retire because of health reasons – so you might not have the choice - you will have to retire and depend on the government for support. Good luck!
Let us help you before it's too late. We will have a licensed professional assist you to adequately plan for your future using time proven and sound strategies. Contact us by clicking >>>> here and we will get back to you without delay because time is of the essence. The longer you leave it the harder it becomes. Do not say you will do it later because “one of these days is none of these days” - time is not your friend. The later you leave this the more pressure you put on yourself. DO IT NOW!
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The information featured in this article is general in nature and therefore should not be solely relied upon as a solution to your personal situation.Before making any investment, insurance or financial planning decision, you should contact and consult a licensed professional who can advise whether your decision is appropriate to you.