Change is in the air … coming to grips with your own financial crisis
Have your retirement plans been dashed by the sudden economic downturn and the shocking drop in assets values? Perhaps you have already retired only to find that your investment income is now seriously in danger of having to be downgraded. If any of this sounds like you … read on!
Less than a century ago retirement did not exist. The natural course of human life was to work until you died, and then you retired once and for all. In fact, that’s the way it may be for the majority of human kind even today.
In the early part of the 20th century however Western Governments could not get older citizens to get out of the workforce to make room for the younger generation, so they offered them a government sponsored income (the aged pension) to stop work once they reached a certain age.
The life expectancy for a male in those days was probably only about 61, so the government did not expect to have to pay a retirement income benefit for very long. The idea (back then) was a good one, because it encouraged the older generation to quit work and in doing so they created more jobs for the younger generation.
It was a ‘win – win’ situation. Now, however, the ball game has dramatically changed!
A WHOLE NEW BALL GAME.
• First the older generation are living for longer (into their 80s in most cases) and that’s mainly because of modern medicine.
• Secondly there will not be enough young ones around in the near future to take the older generation’s place in the work force, and pay the taxes that are necessary to support the older generation with a livable aged pension.
• Thirdly as the baby boomers pile into old age (and the first of them are already aged 62), the medical fraternity may not cope with the increased numbers. That means medical attention will become more and more expensive and perhaps even harder to get.
So where do we go from here? Well, it may not all be as bad as you think.
CONCENTRATE ON YOUR PASSION – NOT YOUR PENSION.
To begin with it is a fact that people who could probably afford to retire very comfortably, hardly ever do. For example Rupert Murdock, Gerry Harvey, Lindsay Fox, Frank Lowey (to name a few you have heard of), and hundreds of other wealthy people don’t seem to be thinking of retirement – but they are way past what we now call ‘retirement age’.
Yet many more people who really can’t afford to retire – think of nothing else but retirement!
Why is that?
If you are contemplating retirement and you have any thoughts at all that you might not be able to quite afford to keep yourself for the next 20 or 30 years – STOP! It could be your intuition is right. Be brave enough to explore that possibility further and give us a call on 5445 6044. Our office is in Buderim and your first appointment will be at our expense. We are also having a free workshop on this subject called “CHANGE IS IN THE AIR” which will be held at 6pm in Buderim on Tuesday 10th February – it will be conducted by Ellen Schafer who is herself an ‘oldie’.
Website: www.esafinance.com.au
The advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.
Ellen Schafer & Assoc. Pty Ltd ABN 67 072 661 548 is an authorised representative of GWM Advisor Services Limited, ABN 96 002 071 749, an Australian Financial Services Licensee with it’s Registered Office at 105-153 Miller Street, North Sydney
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