YOUR RETIREMENT LIFESTYLE IS DOOMED
How many times do people need to be told that the pension eligibility age is not the mandatory retirement age!
I will say that again ? Pension eligibility age is not mandatory retirement age!
This current government, (as have others before it) raised the pension eligibility age from 65 to 67 and now to 70 in the year 2023.
People can retire at any age they desire to do so. The main factor determining whether or not they should cease working is not simply their desire to do so, but their financial position at the time and the ability to fund their future lifestyle.
And the groundwork for future lifestyle affordability is laid in the foundations of youth and how people manage to pay off their debts at the earliest possible opportunity. Too many people are retiring with a mortgage balance to pay out from their superannuation, which reduces their lifestyle.
And in the current economy, many are losing their jobs through no choice of their own, with little prospects of immediate or foresee-able employment.
The greatest cause of financial pain is the failure by consecutive governments to provide financial education and proper literacy to general population.
People know of financial planners, but are put off by fees, commissions and stories of rorting and lost funds. And financial planners are the people one goes to see about setting up retirement funds, because they don?t provide everyday financial advice as many would consider it to be.
The problem most people have is managing their daily cash needs. They run out of money before they run out of month. And this is still a too common occurrence. People are starved for advice and embarrassed to admit failure to be able to handle their own money, but have few qualified places to turn to.
Some solutions do exist, but handing over all of your income for some-one else to manage your problems does not address the root issue. Earning your own money, managing your own finances, and controlling your future should be the main goal of any financial education program.
At the end of the financial year, should you be contributing to a retirement fund where the returns fluctuate up and down, after the fees have been taken?
Or, should you be eliminating your debts as quickly as possible, knowing exactly how much you can save and then invest in your future ? being debt free!