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How baby boomers are benefiting from Australia's "worst financial mistake"

<p>A financial expert has explained how baby boomers have remained largely unscathed by the ongoing housing crisis in Australia. </p> <p>ABC finance guru Alan Kohler described the crisis as Australia's "worst financial mistake", as Adelaide has now become the country's second least affordable city. </p> <p>The South Australian capital, which has long been known as one of the more affordable places in the country to live, has skyrocketed in price, as the median price for houses and units in Adelaide was $721,376 in January, which is 7.9 times higher than the state's average full-time salary of $91,026.</p> <p>"There are a couple of things that might surprise you: Adelaide became the second, least affordable Australian city last year," Mr Kohler explained.</p> <p>"Adelaide has just taken over from Hobart in second place."</p> <p>"What's going on: put simply, incomes in Adelaide, Hobart and Brisbane are not keeping up with house prices, which are being pushed up by fast-rising population and by first-home buyers."</p> <p>Mr Kohler, a baby boomer, noted that when he and his wife bought their first home in Melbourne for $40,000 in 1980, he was earning $11,500 as a journalist, meaning his home cost just 3.5 times his income before a mortgage deposit.</p> <p>"When my wife and I bought our first house in 1980, the average house price was 3.5 times average income," he said. "Now, it's 7.5 times and rising."</p> <p>"That didn't have to happen: it's Australia's worst, economic mistake."</p> <p>Mr Kohler said parents were increasingly propping up the mortgage deposits of first-home buyers, as first-home buyer subsidies from the federal government only pushed up property prices.</p> <p>"Despite rising prices and crushing interest rates, first-home buyers were the fastest-growing type of borrower," he said.</p> <p>"The Bank of Mum and Dad coughing up early inheritances and politicians showering them with grants and concessions, desperate to appear to be doing something about affordability while actually making it worse."</p> <p><em>Image credits: Shutterstock / ABC</em></p> <p class="mol-para-with-font" style="font-size: 16px; margin: 0px 0px 16px; padding: 0px; min-height: 0px; letter-spacing: -0.16px; font-family: graphik, Arial, sans-serif;"> </p>

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Kochie's brutal message to Baby Boomers

<p>David Koch has shared his brutal thoughts on the housing crisis and rising interest rates, claiming millennials have been dealt the "short end of the stick", while boomers have been spared. </p> <p>The former <em>Sunrise</em> host, who is now the Economic Director at Compare the Market, said young borrowers are copping the brunt of rising interest rates and soaring inflations. </p> <p>“If you bought your home in early 2022 under the pretence that interest rates would stay low for longer, you’ve now been lumped with the short end of the stick,” Mr Koch said.</p> <p>He went on to say young people had difficulty generating any decent savings due to record rental prices and cost-of-living, and those that can scrape together a deposit on a home now face onerous interest charges.</p> <p>Recent data from Compare the Market found homeowners who bought their homes at the peak of the market in early 2022 were far worse off compared to those who bought three years earlier. </p> <p>Those who also bought property before the Covid lockdown have also benefited from a rise in their equity, as property prices have significantly increased over the past four years.</p> <p>Kochie said the repayment hike as a result of rising interest rates was a "tough pill" for young Aussies who had no time to accrue a strong savings buffer.  </p> <p>Given these factors, Kochie said many Aussie baby boomers have been spared the pain of rising interest rates.</p> <p>"Meanwhile, a lot of mature Australians have missed this pain altogether after selling their properties at the peak and having reaped the benefits over more equity for years," he said.</p> <p>"A lot of mature Australians have been shielded from the rate rises, and it's already widely believed that their spending drove inflation."</p> <p>A recent report from CommBank iQ found that baby boomers spending on luxuries appears to be further fuelling Australia's inflation crisis as millennials are forced to cut back on essentials.</p> <p>This goes a long way to explaining why the current cycle of interest rate rises are not dampening inflation as expected, as the new big spenders are older people who own properties outright and are therefore unaffected by rate rises.</p> <p>Boomers are are going on holidays and dining out more often, while millennials, battling higher rents and mortgage repayments, rare being forced to reduce their spending to cope with the worst cost of living crisis in a generation.</p> <p>Koch said, "It's time policy-makers should be asking: how could the pressure be more evenly spread?"</p> <p>Aussie baby boomers have long claimed that they had to make the same sacrifices when they were buying their first homes, given the home loan rate in 1989 to 1990 was at 17 per cent, compared to today's six per cent variable rates.</p> <p>However, Kochie debunked this claim, saying current house prices are far higher when measured against average salaries, and that level was only accelerating, far outpacing wages growth.</p> <p>"Back in the 80s, the average cost of an Aussie house was $70,000, now it's $700,000 - ten times more expensive," he said. </p> <p>The financial guru explained how in the 1980s the average salary was $19,000, compared with $94,000 in 2023.</p> <p>"So in the 80s, the price of a house was four times the average person's income," he said.</p> <p>"In 2023, it's eight times the average Aussie salary."</p> <p>Kochie urged mortgage holders hit with higher repayments to call their banks and explore whether refinancing to a lower-rate loan is possible. </p> <p>"We urge people in mortgage pain to reduce the interest on their repayments as much as possible by shopping around for a better deal," Koch said. </p> <p>"When every dollar counts, 2024 should be the year of the new lender."</p> <p><em>Image credits: Compare the Market </em></p>

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Baby boomers fight back against "self-entitled whingeing generations"

<p>Angry baby boomers have hit back at young Australians for continuing to blame the ageing population for the current housing crisis. </p> <p>A group of disgruntled seniors have shared their thoughts with the <a href="https://www.smh.com.au/national/blaming-baby-boomers-for-your-money-woes-is-unfair-lazy-and-wrong-20231127-p5en21.html" target="_blank" rel="noopener"><em>Sydney Morning Herald</em></a> about the "self-entitled" young Australians, who are facing never-before-seen financial and social barriers to break into the housing market. </p> <p>The open letters come in the wake of Census data showing empty-nesters are hanging on to their big homes in inner-city suburbs, while young families are struggling to find suitable housing while also battling mortgage stress and renters are getting relentlessly price-gouged. </p> <p>Despite the current system disproportionately affecting younger Australians, boomers have hit back at universal claims that they had it easier back in the day. </p> <p>"We bought and paid for these homes; it's not our job to house the next generations, it's the government's," explained Kathleen Kyle in a letter to the <em>Sydney Morning Herald</em>. </p> <p>"Nobody questions people who spend their money on lovely cars or antiques, or suggests that they don't need them any more."</p> <p>In another letter, Kathy Willis from Kew near Port Macquarie wrote, "Boomers have worked very hard to get what they have, having brought up their families in these homes."</p> <p>"I suggest the discourse be directed to people such as town planners, local councils and state governments for their lack of vision in the past, and what the present authorities are going to do about it – and of course, the taxpayers' expense."</p> <p>Suzanne Hopping from Redfern, Sydney, wrote that she could no longer stay silent on "boomer bashing" from "self-entitled whingeing generations".</p> <p>"I bought my first home when I was 39 in an undesirable suburb. Buying a home (at 17.5 per cent interest) was as difficult then as it is today."</p> <p>"When I left home I had no expectations of ever being able to afford to buy a place of my own."</p> <p>"Self-entitled whingeing generations, if you don't like what you see, do something positive about it. Each generation has its unique problems, stop the moralising."</p> <p>Wendy Cousins from Balgownie NSW wrote that "boomer bashing" is futile, adding, "Why encourage resentment of boomers because many choose to stay in their homes? This will not free up any housing."</p> <p>"Many have already downsized and those who haven't, have a variety of reasons why they don't. We have enough division in our society without the constant boomer bashing."</p> <p>Despite the views of many disgruntled boomers, University of Melbourne Professor Allan Fels, an economist and mental health advocate, said figures show beyond a doubt that life is much tougher for the younger generation, and basic economics prove it is much harder for them to buy a house.</p> <p>"We baby boomers have had it a lot easier than the new generation of young people," he told <a href="https://www.dailymail.co.uk/news/article-12793605/Boomers-hit-self-entitled-whingeing-young-Aussies-reveal-theyre-not-blame-housing-crisis.html" target="_blank" rel="noopener"><em>Daily Mail Australia</em></a>.</p> <p>"They face a future of much less home ownership and associated mental health stability. The mere fact they are missing out is a cause of stress."</p> <p>"The trend of rising prices adds to the stress because many used to think that they could buy their own house but they keep missing out because prices are continually rising just beyond their grasp."</p> <p><em>Image credits: Shutterstock</em></p>

Money & Banking

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"Sorry about that, kids": Baby Boomers blamed AGAIN for national woes

<p>Australia's ongoing battle against soaring inflation is taking a toll on ordinary households, particularly young Australians, while – according to a recent News.com.au analysis – "<a href="https://www.news.com.au/finance/economy/australian-economy/why-boomers-and-big-business-are-to-blame-for-australias-economic-woes/news-story/d6478109e7701ad4cef152f38956e6b7" target="_blank" rel="noopener">cash-rich baby boomers and price-gouging corporations</a>" remain largely unscathed.</p> <p>This stark reality has been brought to light by financial experts and youth advocates, who point to the disproportionate impact of rising interest rates and living costs on younger generations.</p> <p>"Some interesting results from CBA's results presentation," observed ABC financial journalist Alan Kohler in a recent television appearance that has since gone viral. "They all highlight the great divide between generations."</p> <p>Kohler presented data showing that Millennials have the most debt and "baby boomers have most of the savings", with young people drawing down on their limited savings while boomers continue to grow their nest eggs.</p> <p>"And Gen Z and millennials are cutting back their spending and therefore doing all the hard work, helping the Reserve Bank get inflation down, but baby boomers are spending more and undermining that effort," Kohler explained. "So, sorry about that, kids."</p> <div class="embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;"><iframe class="embedly-embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border-width: 0px; border-style: initial; vertical-align: baseline; width: 580px; max-width: 100%; outline: none !important;" title="tiktok embed" src="https://cdn.embedly.com/widgets/media.html?src=https%3A%2F%2Fwww.tiktok.com%2Fembed%2Fv2%2F7267335675010141442&display_name=tiktok&url=https%3A%2F%2Fwww.tiktok.com%2F%40equitymates%2Fvideo%2F7267335675010141442&image=https%3A%2F%2Fp16-sign-sg.tiktokcdn.com%2Fobj%2Ftos-alisg-p-0037%2FocNiGB6EkWBejOG1BH8DgQnwC2AVIM2QIebTQs%3Fx-expires%3D1699671600%26x-signature%3DSWclfroCkbHi55dgIg5%252FyW0Gf%252Bk%253D&key=5b465a7e134d4f09b4e6901220de11f0&type=text%2Fhtml&schema=tiktok" width="340" height="700" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe></div> <p>Kos Samaras, director of research firm RedBridge Australia, echoed Kohler's sentiment, noting that millions of Australians are now in negative cash flow, struggling to make ends meet.</p> <p>"It's a train wreck," Samaras asserted. "These households are not driving inflation. It's people like myself and much older. Spending from 50+ is up, savings are up, and higher interest rates equal higher earned interest on savings. It's also super profits and other international drivers."</p> <p>PropTrack economist Angus Moore offered a more nuanced view, explaining that inflation is "never driven by a single thing or a single group."</p> <p>"For the sake of simplifying it, the reason we're seeing high inflation is down to two things," Moore clarified.</p> <p>"One is supply-led inflation, which is things like petrol and energy prices, disrupted supply chains driving up import costs, growth in construction costs, and so on.</p> <p>"More recently in the past 18 months, we've seen the second cause emerge, which is demand-led inflation. Basically, the economy is broadly doing very well. Unemployment is the lowest it's been in five decades. That's helped to give people more money, which has supported spending – or demand-led inflation."</p> <p>Amidst widespread financial hardship, corporations are reaping record profits, further fuelling public resentment.</p> <p>Electricity prices surged by 4.2 per cent in September, reflecting higher wholesale costs being passed on to consumers. Origin Energy, one of the country's largest electricity suppliers, saw a staggering 83.5 per cent increase in profits in the 2022-23 financial year.</p> <p>"The public have been told that supply chain issues and inflation are to blame for the cost-of-living crisis," said Joseph Mitchell, assistant secretary of the ACTU. "But when you see the profits like those posted, it is legitimate to ask whether Australia's big supermarkets have used the cost-of-living crisis as a smokescreen to push up their profit margins, despite costs decreasing for themselves."</p> <p>Similarly, Australia's biggest insurer IAG, which owns NRMA and CGU among others, posted a net profit of $832 million in 2022-23, skyrocketing 140 per cent on the year prior.</p> <p>"Insurance is an essential," Mitchell emphasised. "To protect our homes and to get to work we all have to pay those premiums. It's beyond the pale to expect hard working Australians to continue cop increases to life's essentials just to have big business creaming from the top."</p> <p>The Australia Institute's Centre for Future Work is demanding price regulations across strategic sectors such as energy, housing and transport, as well as competition policy reform to restrain exploitative pricing practices.</p> <p>"The evidence couldn't be any clearer – enormous corporate profits fuelled the inflationary crisis and remain too high for workers to claw back wage losses," stated Dr Jim Stanford, the centre's director.</p> <p>"The usual suspects in the business community want to blame labour costs for inflation. That claim simply doesn't stack up under the weight of international and domestic evidence that shows corporate profits still account for the clear majority of excess inflation, despite inflation moderating from its peak last year."</p> <p><em>Image: TikTok</em></p>

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Baby boomer's "humble brag" backfires spectacularly

<p>A baby boomer has been mercilessly mocked online after complaining that the value of her home skyrocketed by $1 million. </p> <p>A Sydney mother took to Reddit to share that she purchased a family home for $2 million six years ago, and was shocked to learn her neighbour had sold their home for a whopping $3 million. </p> <p>The boomer parent feared that the property market was becoming so unaffordable that her children would also need to come up with a seven-figure sum to eventually own their own homes. </p> <p>Despite the poster being genuinely concerned, commenters on Reddit were less than sympathetic that her children might end up "worse off", and asked why they even needed a multi-million dollar home in the first place. </p> <p>The mother insisted that she was not bragging about her situation and that she considered herself "lucky" to be able to buy her first house "when they were affordable".</p> <p>"Prices have risen since, it's not news to anyone," she wrote.</p> <p>"I have never been excited about the value of my house going up because I've always known it just meant things would be harder for my kids and all other younger people."</p> <p>Despite trying to appear understanding of the plight of would-be homeowners, she was slammed for her "tone deaf" take on the issue. </p> <p>"Oh my heart bleeds, but why do your kids need multi-million dollar homes," one user asked. </p> <p>Another user said that her "humble brag" was "very sad".</p> <p>Others agreed that she was facing the reality that they had been facing for years and suggested that she toned down her children's expectations for home ownership. </p> <p><em>Image credits: Getty Images </em></p>

Money & Banking

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Aussie shopper sparks outrage over "boomer hour" pitch at supermarkets

<p>A frustrated Aussie shopper has called for major supermarkets to implement a dedicated "boomer hour" for seniors to do their groceries. </p> <p>The shopper, from Victoria's Mornington Peninsula, caused an uproar after posting on Facebook saying that elderly customers should be "more mindful of time-poor workers and busy parents".</p> <p>The person went on to write that senior shoppers often take up too much space in the aisles to stop and socialise, making it "inconvenient" for other shoppers in a rush.</p> <p>The divisive post attracted a lot of attention, with many younger shoppers flocking to the comments to back the controversial idea. </p> <p>One person said older shoppers should save their socialising for the cafe or park like “every other normal person”.</p> <p>“This means not using the entire width of supermarket aisles as a catch-up spot to discuss what cruise Bazza’s on, or how the tenants in Jenny’s 13th investment property are really grinding her gears because they want the aircon fixed before summer. Not at 5pm on a weekday.”</p> <p>Despite some support for the idea, consumer behaviour analyst Barry Urquhart branded the idea as "ageism personified".</p> <p>"It won't work because they are a primary driver of the marketplace at the moment," he told <em>Seven News</em>.</p> <p>"At a time where the cost of living and the cost of doing business is acute, you can't turn and marginalise any consumer group."</p> <p>"This is ageism personified. People are wanting to say 'let's marginalise the older people, let's make them invisible'' and they're saying 'no we're asserting ourselves in tourism, hospitality, flight purchases at large'," he said.</p> <p>"Follow the money and the money in Australia at the moment is for people aged 50 years of age and older because they've got less mortgage, more discretionary purchases and are spending it."</p> <p>Urquhart went on to tell <a href="https://www.3aw.com.au/frustrated-shoppers-call-for-boomer-hours-in-supermarkets/" target="_blank" rel="noopener"><em>3AW</em></a> radio that the measures would be impractical for businesses and senior shoppers. </p> <p>He said, “Trying to group boomers into one group … it’s not possible.”</p> <p><em>Image credits: Getty Images </em></p>

Retirement Life

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Boomer calls out young Aussie's "war on oldies"

<p>A baby boomer has called out Australia's "war on oldies", as millennials have a "growing resentment" to the older generation. </p> <p>Former political reporter David Jones wrote that millennials are making boomers “feel they’re a looming burden” on the country in an opinion piece for <em>The Daily Telegraph</em>, saying they have "drawn the battle lines" in an intergenerational war.</p> <p>Jones, the self-proclaimed boomer, wrote, “Make no mistake, there is a ‘war on oldies’ happening in Australia, with growing resentment directed at the nation’s ageing baby boomer population.”</p> <p>“It is happening in subtle and not-so-subtle ways but the underlying message is the same."</p> <p>“Baby boomers, you’ve had it too good for too long and now that you’ve reached your dotage, it is time to pay for your’ sins’ of affluence – and hard work.”</p> <p>Jones went on to argue that millennials' anger at the older generations is misplaced, especially when they had “actually contributed a lot” to building modern Australia.</p> <p>“Are baby boomers really as bad as people think? No we’re not,” he continued.</p> <p>He wrote that boomers were Australia's "finest generation", and had grown up appreciating the struggles of their childhoods as their parents endured the Great Depression and two world wars. </p> <p>Jones admits his generation was “born into the halcyon days of full employment and a seemingly endless economic boom” when recruitment was easy.</p> <p>Employers “recruited us on the quadrangles of Sydney’s high schools”, Jones said.</p> <p>“The lingering insinuation is that the ‘boomers’ are too self-satisfied and electorally powerful for their own good."</p> <p>“They own too many properties, they’ve occupied too many rungs on the career ladder, they don’t have mortgages and looking after them in their old age will be a burden on the state and the generation to come.”</p> <p>Jones concedes that millennials have “good reason to be resentful about a number of things” – from the cost of living and housing crisis, sky-high interest rates, even stagnant career opportunities – “but the blame doesn’t rest at the feet of baby boomers”, he said.</p> <p>Instead, he said the anger belongs on the shoulders of politicians for making “dumb decisions” in government.</p> <p>“In defence of baby boomers, we shouldn’t be held responsible for the catastrophic failure of all levels of government to allow home housing in sufficient numbers to satisfy demand for purchase and for rent."</p> <p>“We didn’t … feel comfortable about the orgy of government spending and borrowing during Covid that put Australia on the road to high inflation and economy crippling interest rate hikes."</p> <p>“Nor did we have a choice about getting older.”</p> <p><em>Image credits: Getty Images</em></p>

Retirement Life

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Expert's bold claim that boomers are to blame

<p dir="ltr">An expert has claimed that baby boomers have “won the intergenerational lottery”, while young Australians continue to struggle to make ends meet. </p> <p dir="ltr">Chief economist for the MB Fund, Leith van Onselen, shared new data to support his claims, as he said governments have continuously favoured the older generations and neglected the financial needs of young people. </p> <p dir="ltr">The economist believes boomers have long had the upper hand in terms of taxes, wages, and house prices, and are completely unaware of their financial privilege. </p> <p dir="ltr">In terms of homeownership, van Onselen wrote for <em><a href="https://www.news.com.au/finance/economy/australian-economy/data-reveals-how-baby-boomers-have-seized-aussie-economys-spoils-as-young-people-suffer/news-story/dc59569780fb42389915e11cdb41dba6" target="_blank" rel="noopener">news.com.au</a></em> that boomers were “lucky” to break into the housing market when house prices were still achievable. </p> <p dir="ltr">He said, “Baby Boomers have the highest home ownership rate in Australia and were lucky to have gotten into the market while houses were still reasonably priced.” </p> <p dir="ltr">“They then enjoyed the rapid appreciation of home values, while younger Australians have been priced out.”</p> <p dir="ltr">He continued, “They mostly own their homes outright and are largely unaffected by rising mortgage rates or rent increases.”</p> <p dir="ltr">“Some Boomers are even benefiting from soaring rents, as they own a large chunk of the nation’s investment properties.”</p> <p dir="ltr">Van Onselen also discussed the spending habits of everyday Aussies, citing data from the Commonwealth Bank that shows how many young Australians halted spending in the face of the cost of living crisis, while baby boomers did the opposite. </p> <p dir="ltr">He said, “According to an analysis of seven million CBA customers’ purchasing habits, spending per capita for all age groups under 55 fell relative to the rate of inflation in the year to March 2023.”</p> <p dir="ltr">“Australians aged under 35 increased their spending by only 3.4 per cent in the year to March, which was less than half the rate of inflation.”</p> <p dir="ltr">“This means that the average young person is buying fewer goods and services.”</p> <p dir="ltr">He continued, “By contrast, spending among the over 55s climbed at a faster rate than inflation over the year to March, with CBA customers over the age of 75 increasing their spending by approximately 13 per cent.”</p> <p dir="ltr">The economist said that this drastic change in spending habits within the older generation has directly impacted inflation rates, as well as interest rates that continue to rise. </p> <p dir="ltr">He said, “Therefore, the older generations are driving Australia’s household consumption and are helping to push up house prices, which has forced the RBA to respond with higher interest rates – which is negatively impacting younger Australians with mortgages.”</p> <p dir="ltr">Van Onselen summarised his claims by stating he believes that “Older Australians also look to have tightened their stranglehold on the nation’s homes.”</p> <p dir="ltr">“To the Baby Boomers go the economy’s spoils.”</p> <p dir="ltr">He concluded his claims by taking aim at a common argument that the older generations use against younger Aussies who are struggling financially, as he wrote, “Now watch on as they eat smashed avocado toast.”</p> <p dir="ltr"><em>Image credits: Shutterstock</em></p>

Money & Banking

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Kochie silences Boomer housing myth

<p><em>Sunrise</em>’s David Koch has set the facts straight for Baby Boomers across Australia, putting an end to the popular notion that it’s laziness and greed preventing younger generations from getting their foot in the housing market. </p> <p>In a bid to prove his point, the TV host analysed each contributing factor, and broke down the various obstacles between buying a house in the late 1980s and buying one in 2023. </p> <p>“Back in my day,” Kochie began his segment, imitating a popular line utilised by Boomers when launching their arguments, “I was paying 17 per cent on my home loan. Now that was tough.”</p> <p>“Alright, hands up who has said that or been told that at a family get together recently,” he continued. “So, is that grumpy oldie right or wrong? These are the facts.”</p> <p>From there, he went on to explain that at a surface level, the answer seems obvious, and in favour of the older generations. Home loan rates reached 17% in 1989, while a variable loan is just 6% in 2023. </p> <p>However, a deeper dive into the matter soon revealed the concerning truth. While the average cost of a house was $70,000 in the 1980s, that number had multiplied by 10 in 2023, coming in at $700,000. </p> <p>“A 20% deposit has gone from $14,000 to $140,000,” Kochie added, before explaining that the issues kept coming from there, as “wages have not kept pace. 40 years ago, the average person was earning $19,000, now it’s closer to $90,000.”</p> <p>And, as <em>news.com.au</em> had previously reported, Australian wages basically had not budged in the decade leading up to 2023. </p> <p>“So, in the ‘80s, the price of a house was four times the average person’s income,” Kochie surmised. “In 2023, it’s 8 times the average Aussie salary.</p> <p>“The bottom line is that today’s 6% mortgage rate is causing the same financial pain as that grumpy old oldie’s 17% in the 1980s, and with rates set to go higher, it has never been tougher to meet a mortgage. So hopefully, that puts that myth aside.”</p> <div class="media embed-iframe" style="box-sizing: inherit; display: flex; flex-direction: column; align-items: center; width: 705.2px; margin-bottom: 24px; font-family: 'Helvetica Neue', HelveticaNeue, Helvetica, Arial, sans-serif; font-size: 18px;"> <blockquote id="v86519172471096370" class="tiktok-embed" style="box-sizing: border-box; margin: 18px auto; padding: 0px; border: 0px; font-style: inherit; font-variant: inherit; font-stretch: inherit; line-height: 1.15; font-family: proxima-regular, PingFangSC, sans-serif; font-optical-sizing: inherit; font-kerning: inherit; font-feature-settings: inherit; font-variation-settings: inherit; vertical-align: baseline; position: relative; width: 605px; overflow: hidden; text-size-adjust: 100%; max-width: 605px; min-width: 325px;" cite="https://www.tiktok.com/@sunriseon7/video/7214279116877516034" data-video-id="7214279116877516034" data-embed-from="oembed"><p><iframe style="box-sizing: inherit; border-width: initial; border-style: none; width: 605px; height: 740px; display: block; visibility: unset; max-height: 740px;" src="https://www.tiktok.com/embed/v2/7214279116877516034?lang=en-GB&amp;referrer=https%3A%2F%2Fwww.news.com.au%2Fentertainment%2Ftv%2Fmorning-shows%2Fkochie-smashes-baby-boomer-housing-myth%2Fnews-story%2F60ad99c43bdc36ec5bb287d8de71f95f&amp;embedFrom=oembed" name="__tt_embed__v86519172471096370" sandbox="allow-popups allow-popups-to-escape-sandbox allow-scripts allow-top-navigation allow-same-origin"></iframe></p></blockquote> </div> <p>And while many were glad to see someone finally telling it as it was, others believed that the situation may actually still be worse than Kochie had outlined. </p> <p>As one TikTok user put it, “if they use[d] the real average wage of $60,000 and not $90,000 it just gets even worse.” </p> <p>“Either I’m not getting paid enough or the average is closer to $60k pa,” one agreed. </p> <p>“Don’t forget they also had 20% interest on their savings accounts,” a digital marketer contributed. </p> <p>“Finally Kochie did something right,” another user wrote, “and broke it down in layman’s terms for the Boomers.”</p> <p>And as another said, “thanks for doing the research! I’m saving this video for EVERY CHANCE I CAN GET when someone tells me ‘it was harder in my day’.” </p> <p><em>Images: Sunrise / Seven</em></p>

Real Estate

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Millennials clash with Boomers in the battle of the housing market

<p>A 27-year-old home loan document has reignited debate over which generation had the biggest mountain to climb in their quest to buy a place to call their own. Read more: </p> <p>The document, uploaded to the Facebook group Perth Reflect, outlines ANZ bank’s various interest rates offered on “owner occupied” homes, as well as those available for “investment property loans”, both respectively effective as of February and March 1996. </p> <p>The poster encouraged the group to discuss the find, and to share their experience with their own first home loans, with the caption “found this in our filing cabinet (1996) and was wondering what interest rates others were paying on their first home loan.”</p> <p>In 1996, the East Start loan for a home was 7.95 per cent per annum, and a variable at 10.50 per cent. Fixed rates began at 8.69 per cent for one year term, and went up to 9.69 per cent for five years. Loan terms for homes were offered up to 25 years, and 20 for investment properties.</p> <p>Meanwhile, in 2023, ANZ boasts a variable interest rate of 5.09 per cent per annum. Fixed index rates now begin at 5.69 per cent, 6.59 per cent for five years, and peak at 7.69 per cent for 10 years. This comes after Australia’s Reverse Bank passed down nine consecutive rises, with the cash rate reaching a 10-year high. </p> <p>The reveal came as a surprise to some, with the numbers of paper appearing much worse for those trying to buy a property in the ‘90s. And in the Facebook comment section, some recalled how their actual rates were even higher than the document suggested.</p> <p>“Paid 17.5 per cent initially, but was on variable,” wrote one of a purchase in the late ‘80s. </p> <p>Another noted how those with a fixed term loan believed they had it “much better” at the time. </p> <p>The younger members of the group, however, were quick to point out that while the numbers looked to be in favour of the older generation, the rates for 2023 did not accurately compare with those from 1996. </p> <p>“Houses were a 5th of the price,” one wrote, referencing an old and recurring argument about the disparity in house prices over the years. </p> <p>It was mentioned that while interest rates were high, prices were low, and “everything was affordable”. </p> <p>The discussion over the impact of the cost of living on wages has been covered from all sides on many occasions, but it didn’t stop it from coming up in this debate too, with one commenter writing, “regardless [of] if wages have increased, everything else has increased twice as much.”</p> <p>It led to the older members of the group circling back to a tired argument, too. One was determined to stop that line of argument in its tracks, suggesting that they’d been able to afford their home with the higher rates because they didn’t purchase takeaway coffee and “only ate out occasionally”.</p> <p>This wasn’t to be taken lying down, with the younger generation refusing to allow that buying the occasional little treat was the reason they couldn’t get a foot in the door of their own home. </p> <p>One member, perhaps realising that bickering wasn’t going to get them anywhere, decided to whip out a calculator and get to the bottom of it all. </p> <p>Someone wrote that they paid $44k for a 3 bedroom home in 1986, with a yearly income of $31k behind them, before allowing that “maybe things weren't so tough”.</p> <p>“If adjusted for inflation,” one said in response, before sharing their maths, “your income today would be $92k pa and the price you paid for your house would have been $131k.”</p> <p>While both generations faced struggles with the property market, the challenges faced in 2023 are an entirely new beast, and one member of Perth Reflects shared their sympathy over the situation. </p> <p>After explaining that they struggled through a 17.5 per cent interest rate themselves, they outlined the difference in their situation and their kids’, writing “my home loan was way less than what my kids are paying today”. </p> <p>They bought land and built a house in High Wycombe on a loan of around $130k, and noted that it can be difficult - if not impossible - find a deal like that in even a country town, where prices tend to err on the ‘cheaper’ side of the scale. </p> <p>“Wages are different,” they surmised, “but housing affordability has gone stupid and wages [have] not [been] increased accordingly.”</p> <p><em>Images: Getty, Facebook</em></p>

Money & Banking

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Baby boomers outraged by satirical post about buying a home

<p>A group of older Australians have fallen for a satirical news article about rising interest rates and home ownership, with baby boomers everywhere expressing their disapproval. </p> <p>A post from Australian satire news site <em>The Shovel</em> has gone viral, after they riled up the older demographic who likely bought their homes for a very reasonable price, while still urging millennials to try harder to get into the impossible property market. </p> <p>The headline of the joke post reads, “'But interest rates were 17 per cent in my day!' complains man who bought house for $67,000".</p> <p>The satirical article goes on to state John Bradly, a fictional 63-year-old man from Melbourne who bought his house in the 1980s, thinks young people concerned about interest rate rises “don’t know how good they have it”.</p> <p>Bradley is quoted as saying he had to save up “for weeks” for a house deposit and that he only had his salary to rely on which was “only about one-fifth of the value of the average home back then”.</p> <p>“It took me more than seven years to pay off my first house. Seven years! I was practically in my thirties by the time I was debt free. Can you imagine? Being beholden to a bank for your entire twenties! I’m pretty sure no-one in their twenties these days has to go through that,” the joke article stated.</p> <p>The article finishes with another jab at older Australians who are making it even harder for first home buyers by owning multiple properties.</p> <p>“Try managing tenants across 11 investment properties scattered around Melbourne and Sydney during a global pandemic. That’s what hard work is,” Bradley was quoted as saying.</p> <p>Despite the almost palpable satirical tone, dozens of Aussies were convinced the article was legitimate, flocking to comment that the article made them feel personally attacked.</p> <p>Even general manager of the Canterbury-Bankstown Bulldogs, Phil Gould, got caught up in discourse, urging the "news" site to do more research before publishing their articles.</p> <p>“Average full-time wage in 1990 was $566.80. Try to do just a little research,” he wrote, sharing a link to the satire article on Twitter. </p> <p>His followers were quick to point out that he had been duped by a fake news post, while others chose to highlight how he was only proving the point the article was making.</p> <p>Gould was not the only one who took the post seriously, with angry baby boomers sharing their stories of hardship when it came to buying their first home. </p> <p>“When my wife and I bought a 2 bed duplex in 90/91?, it cost us $108,000. Interest rates were 17 per cent. $108,000 was a LOT of $$ back then,” one person wrote.</p> <p>“We sacrificed a LOT. We started modestly as well.”</p> <p>Another person claimed that, while they bought their first house in the late 1980s for just over $71,000, but added they didn’t get things like paid parental leave and subsidised child care.</p> <p>“And yes interest rates at 17-18 per cent scared us,” the commenter said.</p> <p>Despite the outrage over the post, many people pointed out that despite the article being of a satirical nature, there could be an element of truth behind the sarcasm. </p> <p>One person said, "It’s getting harder and harder to tell the actual “news” content now", while another wrote, "I thought this was supposed to be a satirical publication".</p> <p><em>Image credits: The Shovel / Getty Images </em></p>

Real Estate

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Boomers are thrifty shoppers and Aussies throw out more than we think

<p dir="ltr">Fast fashion has become the subject of much criticism lately, mostly because of its reliance on cruel (and often illegal) conditions for workers, and its enormous toll on the environment – including increases in clothing heading to landfill.</p> <p dir="ltr">A new report from Vanish has found that the average Australian buys 27kg of new clothes and discards 23kg every year, with the nation throwing away a whopping $6 billion worth in this past financial year.</p> <p dir="ltr">The report, called <em>Stain on the Nation</em>, asked Aussies about their clothing habits and their opinions on everything from whether you should throw clothes in the red bin or donate to charity, to how much waste they think they throw out each year.</p> <p><span id="docs-internal-guid-6aeb0c8e-7fff-232b-0a92-b80ffc2b9a9b"></span></p> <p dir="ltr">It found that 6,000kg of clothing enters landfill every ten minutes, which is a serious issue considering clothing takes years to break down and releases carbon emissions in the process.</p> <blockquote class="instagram-media" style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/Cb_UWlUPzX3/?utm_source=ig_embed&amp;utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"> </div> </div> </div> <div style="padding: 19% 0;"> </div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"> </div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/p/Cb_UWlUPzX3/?utm_source=ig_embed&amp;utm_campaign=loading" target="_blank" rel="noopener">A post shared by UPPAREL (@upparelofficial)</a></p> </div> </blockquote> <p dir="ltr">Much of the country (40 percent) also believe that Australia ranks 6th and 12th place in the world for textile consumption per person, when in actual fact we are in second place, behind the US.</p> <p dir="ltr">Surprisingly, the report also found that those aged over 55 were the thriftiest of the different generations, with 76 percent spending less than $50 a month on new clothes. </p> <p dir="ltr">In comparison, 71 percent of 18-25-year-olds spend more than $50 a month on clothing.</p> <p dir="ltr">But the difference in spending could be attributed in part to the gap between the old age pension and the cost of living, with the Australian Bureau of Statistics revealing that living costs have increased by 3.4 percent for age pension households, versus 2.6 percent for working households, according to the <em><a href="https://www.abc.net.au/news/2022-04-03/what-the-rising-cost-of-living-means-on-australian-age-pension/100947258" target="_blank" rel="noopener">ABC</a></em>.</p> <p dir="ltr">Following the report, Vanish announced a new campaign, with texticle upcycler Upparel, to divert one million clothing items from landfill over the next two years, starting with an installation of 3,000kg of clothing at Sydney’s Bondi Beach and in St Kilda, Melbourne.</p> <p dir="ltr"><span id="docs-internal-guid-1ef36b88-7fff-3c73-f0b8-059c6c872baf"></span></p> <p dir="ltr">With 6,000kg across both cities, the installations are meant to represent the amount of clothing thrown away every 10 minutes.</p> <p dir="ltr"><em>Image: Getty Images</em></p>

Beauty & Style

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68% of millennials earn more than their parents, but boomers had it better

<p>A lot of us are pessimistic about our children’s future. According to the most recent data from the Pew Global Attitudes Survey (in 2019), just 29% of Australians believe today’s children will be <a href="https://www.pewresearch.org/global/question-search/?qid=1625&amp;cntIDs=&amp;stdIDs=">better off financially</a> than their parents.</p> <p>Such pessimism is common in many developed nations. In Japan, just 13% believe children will be better off, in France 16%, in Britain 22%. Australians are still marginally less optimistic than Canadians (30%) and Americans (31%), and significantly less optimistic than Swedes (40%) and Germans (48%).</p> <p><a href="https://www.lifecoursecentre.org.au/research/journal-articles/working-paper-series/are-we-richer-than-our-parents-were-absolute-income-mobility-in-australia/">Our research shows</a> things aren’t as bad as many fear, with 68% of millennials (those born between 1981 and 1987 for our research) earning more income than their parents did at the same age. This is close to the highest percentage <a href="https://www.iza.org/publications/dp/13456/trends-in-absolute-income-mobility-in-north-america-and-europe">among countries</a> for which estimates are available. The experience of gen-Xers (born from the early 1960s to late 1970s) has been similar.</p> <p>But it’s not all good news. That percentage is lower than the upward mobility enjoyed by baby boomers (born from 1946 to the early 1960s). For those born around 1950, 84% earned more at age 30-34 than their own parents did at the same age.</p> <p>There are two prime reasons for this decline in absolute mobility since the 1980s. Lower economic growth leading to average incomes growing more slowly; and growing income inequality.</p> <p><strong>How we did our research</strong></p> <p>The share of people whose income is higher than their parents at the same age is known as “absolute income mobility”. It is an appealing indicator of economic progress because it captures aspirations for our children. It reflects economic growth, inequality and opportunity.</p> <p>Estimating absolute mobility, though, is quite hard. The data we need to measure it directly – information about what people earned at a particular age compared to their own parents – does not exist for Australia.</p> <p>To do this exercise, therefore, we’ve applied <a href="https://science.sciencemag.org/content/356/6336/398">new statistical methods</a> that have been developed in recent years to estimate absolute mobility without linked parent-child data. These methods, using separate generational data on income distribution, have been verified in research published <a href="https://4a2bc32e-a967-44a4-9e23-f2b3b9cf578e.usrfiles.com/ugd/4a2bc3_10d644c7d36c42eba03136cca93e56fc.pdf">in 2018</a> and <a href="https://www.iza.org/publications/dp/13456/trends-in-absolute-income-mobility-in-north-america-and-europe">in 2020</a>.</p> <p>Our own approach closely follows leading international studies. We used sources of data including the Melbourne Institute’s Household, Income and Labour Dynamics in Australia (HILDA) survey, data from Australian Bureau of Statistics surveys and income tax records.</p> <p><strong>What our research shows</strong></p> <p>The main results are below. Of people born in 1950, 84% had higher household incomes than their parents. This fell to about 68% for those born since the early 1960s. It has stayed roughly constant for gen-Xers and millennials.</p> <hr /> <p><iframe id="CxoOP" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/CxoOP/3/" height="400px" width="100%" style="border: none;" frameborder="0"></iframe></p> <hr /> <p>The main driver of this change is slower economic growth. Boomers’ incomes were much higher than their parents particularly due to decades of uninterrupted economic growth from World War II to the mid-1970s.</p> <hr /> <p><iframe id="qjHQt" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/qjHQt/1/" height="400px" width="100%" style="border: none;" frameborder="0"></iframe></p> <hr /> <p>The other driver has been rising income inequality over the past 40 years, after falling in earlier decades, as the next chart shows. The relationship between inequality and mobility is complicated, because high inequality for either generation lowers the rate of mobility.</p> <hr /> <p><iframe id="8bQEW" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/8bQEW/1/" height="400px" width="100%" style="border: none;" frameborder="0"></iframe></p> <hr /> <p>Absolute mobility would be higher if income was adjusted for family size – 78% for millennials, because the younger generation have smaller families than their parents did at the same age.</p> <p><strong>Complicating factors</strong></p> <p>Our results are for income earned in a single year (at about age 32). We have also found similar results when looking at income at around age 37.</p> <p>Ideally, we’d like to calculate absolute mobility of lifetime income. But methods to do this have not yet been developed. So we don’t know what mobility in lifetime income is. The same could be said for indicators of income inequality, which mostly use single-year income measures as well.</p> <p>You also might be wondering about how the cost of housing fits in – an important issue given the escalating cost of a home compared to the median wage.</p> <p>In all the results shown, income is adjusted for inflation using the Consumer Price Index. Housing is a big part of the index though costs such as the price of land and mortgage interest payments are <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/6467.0Feature+Article1Mar+2017">not included</a>.</p> <p>The ABS does factor mortgage debts into its “Selected Living Cost Indices”, but these only go back to 1998, so couldn’t be used in these calculations. However, the changes in the CPI and the SLCI over the past 20 years are similar, which gives us some assurance our estimates account for the cost of housing. Further work could explore this in more detail.</p> <p><strong>Valid concerns</strong></p> <p>Australia has achieved high levels of absolute income mobility for all generations since at least the 1950s. This is still the case. But the pessimism about our children’s financial future is rooted in some valid concerns.</p> <p>Wage growth has been <a href="https://www.rba.gov.au/publications/bulletin/2017/mar/2.html">slow for years</a>. Income inequality has been <a href="https://wid.world/country/australia/">increasing for decades</a>. So has the gap <a href="https://grattan.edu.au/report/generation-gap/">between young and old</a>.</p> <p>So there are clear threats for the prosperity of today’s children – even without factoring in concerns such as climate change.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/161647/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><span><a href="https://theconversation.com/profiles/peter-siminski-250958">Peter Siminski</a>, Professor of Economics, <em><a href="https://theconversation.com/institutions/university-of-technology-sydney-936">University of Technology Sydney</a></em></span></p> <p>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a rel="noopener" href="https://theconversation.com/68-of-millennials-earn-more-than-their-parents-but-boomers-had-it-better-161647" target="_blank">original article</a>.</p>

Retirement Income

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Why this Baby Boomer hit song is topping the charts 40 years on

<p>Fleetwood Mac are back in the spotlight after a TikTok featuring one of their songs went viral last month.</p> <p>The album Rumours was released over 43 years ago but it quickly moved up to No. 11 on the ARIA Albums Chart this week, jumping six spots from the previous week.</p> <p>The song Dreams had an even more impressive week after a man long boarding down the street used it in his TikTok video.</p> <p>The single has moved up to No. 4 - a 10-spot jump from last week.</p> <p>Nathan Apodaca was the man behind the viral TikTok - dubbed The Dreams Challenge - and quickly became an internet sensation.</p> <blockquote class="twitter-tweet"> <p dir="ltr">I don’t use this verbiage often but this is a whole vibe. simple as that <a href="https://t.co/NfdLsgLkxu">pic.twitter.com/NfdLsgLkxu</a></p> — DrewFrog (@DrewFrogger) <a href="https://twitter.com/DrewFrogger/status/1309531633545089024?ref_src=twsrc%5Etfw">September 25, 2020</a></blockquote> <p>It currently has over 60 million views.</p> <p>Soon it caught the attention of the band’s very own Mick Fleetwood, as he recreated the video.</p> <p>Apodaca appeared on the Today show and said he was honoured after watching the TikTok.</p> <p>"He made his own TikTok account. His first video was this one. The parody of my video. I feel honoured. A legend doing that. It's just amazing," he said. "I got to talk to him in the another interview. He was telling me that his daughters and everything said 'Dad, you need to do this'.</p>

Music

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Paul Keating rips into "greedy" Baby Boomers

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text "> <p>Former Prime Minister Paul Keating has decimated the greed of Baby Boomers, saying that his own generation would never ut up with the low wages, HECS debts and calls to raid their own super accounts for money in the current COVID-19 economy.</p> <p>He has warned that low income younger workers have been asked to raid their own super accounts to the tune of $40 billion, which is around the same amount that the Morrison Government has spent to date on massive stimulus measures such as JobKeeper.</p> <p>He made the statements in a briefing today organised by Industry Super that the legislated pay rise has already been factored into wage negotiations and must not be scrapped.</p> <p>“You cannot have a decent income in retirement without self provision. Otherwise, you would have people on the pension which is now what $23,000 or $540 a week?,’’ he said.</p> <p>“Take my generation, the Baby Boomers. They want everything yesterday and they want it doubled now. If there was no super they wouldn’t be wanting $23,000 they would be wanting $50,000 now.</p> <p>“You look at these young people, I mean a lot of them are on low wages, they carry the HECS charge around their neck before they start, they have trouble accommodating themselves</p> <p>“We are saying, ‘Oh, by the way you can look after the rest of us aged people.’ It’s just fanciful nonsense.”</p> <p>Mr Keating said that if workers failed to save enough super, more will be forced to survive off the aged pension.</p> <p>“Well. The thing is there’s no economic case for it not to go ahead. None. There’s a prejudicial case from some of these baby-faced Liberals,’’ he said.</p> <p>“These first term senators, a particular modest form of political life.”</p> <p>“Look, the thing is this. Anyone born in the 1970s, and I’ve got children born in the 1970s, will live now until 105 or 110,’’ he said.</p> <p>“In other words if they save for 40 years from say 25 to 65, they will be relying on the savings for a further 40 years. This cannot happen with a pool of funds of 9.5 per cent it’s not large enough to do that.</p> <p>“The argument for 12 is a very basic argument for adequacy. If we’ve got people living longer, what case is there possibly to not have 12 per cent?”</p> <p>Mr Keating said he took the Prime Minister at his word that he was "no plans" to scrap the super increase, but warned the Liberal Party has never supported super.</p> <p>“The Liberal Party has never liked mandatory superannuation. They’ve had to be dragged screaming,’’ he said.</p> <p>Former Labor frontbencher and ACTU secretary Greg Combet said the business of allowing workers to raid their super accounts of nearly $40 billion has been a disaster.</p> <p>“It’s been a free for all,’’ he said.</p> <p>“That money has gone into the banks. That to me is all wrong,” he said.</p> <p>“I just think it’s critical that on December 31 the early access scheme is terminated.”</p> </div> </div> </div>

Money & Banking

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Outrage as millennials have shocking new term for coronavirus

<div class="post_body_wrapper"> <div class="post_body"> <div class="body_text "> <p>Millennials have created a new hashtag for coronavirus that has caused a lot of anger with the older generation.</p> <p>The younger generation has attached the hashtag “boomer remover” to coronavirus posts on Instagram, Tik Tok and Twitter during the coronavirus pandemic.</p> <p>As the pandemic has killed more than 30,000 people worldwide so far, these posts have been met with outrage.</p> <blockquote class="twitter-tweet"> <p dir="ltr">So young kids are hoping their parents and grandparents die? <a href="https://twitter.com/hashtag/BoomerRemover?src=hash&amp;ref_src=twsrc%5Etfw">#BoomerRemover</a> <br />Is that so they can finally move out of the basement and upstairs?</p> — That Girl (@whoulooknat) <a href="https://twitter.com/whoulooknat/status/1238433449364594694?ref_src=twsrc%5Etfw">March 13, 2020</a></blockquote> <blockquote class="twitter-tweet"> <p dir="ltr">God Answers Many with Coronavirus <a href="https://twitter.com/hashtag/coronapartys?src=hash&amp;ref_src=twsrc%5Etfw">#coronapartys</a> <a href="https://twitter.com/hashtag/BoomerRemover?src=hash&amp;ref_src=twsrc%5Etfw">#BoomerRemover</a> <a href="https://twitter.com/hashtag/coronavirus?src=hash&amp;ref_src=twsrc%5Etfw">#coronavirus</a> <a href="https://t.co/g6D3zyGdNN">pic.twitter.com/g6D3zyGdNN</a></p> — cdnpolitoon (@cdnpolitoon) <a href="https://twitter.com/cdnpolitoon/status/1242455970241851393?ref_src=twsrc%5Etfw">March 24, 2020</a></blockquote> <blockquote class="twitter-tweet"> <p dir="ltr">Again, it really is the <a href="https://twitter.com/hashtag/BoomerRemover?src=hash&amp;ref_src=twsrc%5Etfw">#BoomerRemover</a> <a href="https://t.co/lZcDB4Dm8M">https://t.co/lZcDB4Dm8M</a></p> — Matt Maggio (@MaggioMatt) <a href="https://twitter.com/MaggioMatt/status/1241879743898750976?ref_src=twsrc%5Etfw">March 23, 2020</a></blockquote> <p>Many people have been prompted to say it was a joke after being met with anger.</p> <p>However, others have said it’s not the time for black humour.</p> <p>“Your sense of humour is considerably in question. The mother of a friend of mine (she is 79) died last week. Screw your joke,” <a rel="noopener noreferrer" href="https://twitter.com/StewartCBryson2" target="_blank">Stewart C Bryson replied on Twitter</a>.</p> <p>“Genuine question ... would you still think it was funny though if it was actually your parents or grandparents who died in this way?”, <a rel="noopener noreferrer" href="https://twitter.com/rebecca_voices" target="_blank">Rebecca Courtney wrote on Twitter</a>.</p> <p>Experts have said that the popularity of the meme is only going to “further divide us”.</p> <p>“It’s only going to further divide us,” said Cort Rudolph, 35, who submitted a paper this week on how the virus could shape today’s young people as they come of age.</p> <p>“I think what you need to refocus the attention on is that this is not an older versus a younger thing, but this is an issue for everyone. We all have a certain responsibility to each other and not just to our generational group,” he said to<span> </span><em><a rel="noopener noreferrer" href="https://www.bloomberg.com/news/articles/2020-03-21/covid-19-divides-u-s-society-by-race-class-and-age" target="_blank">Bloomberg</a>.</em></p> </div> </div> </div>

News

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New research shows baby boomers are less threatened by technology in the workplace

<p><span style="font-weight: 400;">New research commissioned by technology leader </span><a href="http://links.erelease.com.au/wf/click?upn=5eYQ-2B9hvLjY4F2EakWBi1ZLO7jaULuWnZBmbjF1-2FN2Awx-2F-2FA9sj0-2BQL-2BinGrP-2BrI_hfIqhjxrH5PXl2rHT1sLDTWyF1R6hGp8veDS2OqJRfJ2gqdnaHEljBkVvra9aGlx4VjSVUbKFpLRdZf3fB2LscCpfNHBZj472Ly9XaNbOKGSrO9w0nJWn8lTtojc5Iz41jlOpJCekIRYEVTulwB977Q2DlfgspDP1rDMixltb-2FDHmXx8SrNCmjiIToeB0EoXDNalY9E7KRn64YmdzVzUef-2B6t6bZP3-2FzMJbnfRI54eK0ZKR120HaEiYqQz5nWbnR"><span style="font-weight: 400;">Genesys</span></a><span style="font-weight: 400;"> has shown that older generations are significantly more positive towards artificial technology in Australia and New Zealand.</span></p> <p><span style="font-weight: 400;">The new research also suggested that older generations are more comfortable with the implementation of modern workforce tools as opposed to younger respondents.</span></p> <p><span style="font-weight: 400;">70 per cent of respondents aged 18-38 years believe there should be a minimum requirement of human employees over AI/bots compared to 59 per cent of respondents aged 55-73 years. The younger respondents appear to be more cautious of the implementation of this technology compared to more senior respondents.</span></p> <p><span style="font-weight: 400;">All age demographics have reported seeing the benefit of advanced technology in the workplace, with an average of 87 per cent stating that it has a positive impact.</span></p> <p><span style="font-weight: 400;">However, 23 per cent of respondents aged 18 – 38 reported feeling threatened by new technology in the workplace. </span></p> <p><span style="font-weight: 400;">Gwilym Funnell, Vice President of Sales and Managing Director for Genesys in Australia and New Zealand said, “Older generations are valuable members of our workplace, and these results dispel the myth that they are averse to technology. </span></p> <p><span style="font-weight: 400;">“The evolution of business is calling for greater adaptability; this is when experience can be leveraged for greater success.”</span></p> <p><span style="font-weight: 400;">The survey also uncovered another key difference between the generations, which was the perception of the impact of technology on social interactions.</span></p> <p><span style="font-weight: 400;">44% of respondents aged 55-73 years report technology does not inhibit social interactions at all, while those aged 18-38 years report it does – 7% more than their older peers.</span></p>

Technology

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New research shows baby boomers attend more gigs than any other Aussie age group

<p><span style="font-weight: 400;">New research that’s been conducted by </span><a href="https://www.eventbrite.com.au/"><span style="font-weight: 400;">Eventbrite</span></a><span style="font-weight: 400;"> has revealed that the priorities of Australian music fans are changing.</span></p> <p><span style="font-weight: 400;">The report, which collated the responses of more than 1,130 gig-goers weighed in on a range of topics including social media, streaming and safety.</span></p> <p><span style="font-weight: 400;">The report showed that Baby Boomers are the most committed live music fans. These are people who are born between 1946 and 1964 and they attended more gigs than any other generation. The report also found that 1 in 5 baby boomers attend music events alone.</span></p> <p><span style="font-weight: 400;">Three quarters (74 per cent) of Baby Boomers will actively research an event before buying a ticket, with 1 in 3 being reliant on traditional media sources such as TV, radio or newspaper advertising to discover events.</span></p> <p><span style="font-weight: 400;">Baby Boomers were also willing to spend the most on their ticket, as 45 per cent spent between $50 and $250 per ticket last year.</span></p> <p><span style="font-weight: 400;">The report found that while social media plays a role in the event experience, live music is all about “being in the moment” and sharing the experience with others, with 60 per cent talking face to face about the event with friends and family.</span></p> <p><span style="font-weight: 400;">However, when it comes to live events, the majority of responders (79 per cent) want value for money.</span></p> <p><span style="font-weight: 400;">Phil Silverstone, General Manager of Eventbrite Asia Pacific commented on the results. </span></p> <p><span style="font-weight: 400;">“In a year where Australia’s live music scene has attracted both high praise and intense criticism, this survey sees us pass the mic to the fans – and the results should be music to the industry’s ears.</span></p> <p><span style="font-weight: 400;">“Music fans are attending more shows, they’re sharing more content, and they’re engaging more deeply with artists, venues and festivals across a range of online and offline channels than they ever have before. It’s an exciting time for Australia’s live music industry – and we’re thrilled to play a role in powering its success.”</span></p>

Music

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Meet the baby boomer backpackers seeing the world on a shoestring budget

<p>Travelling through Turkey in an old VW in the 1980s, Wendy Clark, her husband David and their two travel buddies were treated to an impromptu concert by a woman they had no idea at the time would inspire their future travels.  </p> <p>The couple were in the ancient Greek city of Ephesus, the ruins of which lie near the modern village of Selcuk in western Turkey, when a solo traveller they had recently met - a widowed Australian in her seventies - took centre stage at the 25,000-seater amphitheatre which had once hosted gladiator fights and philosophical debates and began to sing.</p> <p>"She had a beautiful singing voice and she stood and gave us a concert," Wendy, who now lives in Queenstown, says. "I've never forgotten that. I just always thought what a fantastic attitude that was. She was completely at large, she was doing all these wonderful things and she wasn't letting age stop her."</p> <p>Wendy and David, in their early twenties at the time, were on an OE typical of Kiwis at the time: working "black" [illegally] for six months at a time in London to save for jaunts through Europe. Back then, Turkey was far from the tourist magnet it is today. Oscar-winning film Midnight Express - a 1978 prison epic about a young American tourist tortured in an Istanbul prison after being discovered with hash at the airport - had virtually killed the Turkish tourism industry overnight. The Australian widow aside, Wendy and David, originally from Invercargill, had seen few other tourists in their time there. But adventurous travel on the cheap was their jam.</p> <p>"I remember a Contiki bus coming into the campground one day," Wendy says. "We looked completely down our noses at that. What we were doing was very spontaneous."</p> <p>More than three decades on their travel ethos remains largely unchanged. With their children now grown, Wendy and David, aged 56 and 62 respectively, are relishing being able to travel overseas again. And, like a growing number of baby boomers and older travellers, are choosing to stay in budget accommodation such as backpackers and homestays and use cheaper forms of transport.</p> <p>A 2018 study by <span style="text-decoration: underline;"><strong><a href="http://booking.com/" target="_blank">Booking.com</a></strong></span> of 20,000 travellers around the globe, including 500 New Zealanders, found that 20 per cent of baby boomers - often defined as those born between 1946 and 1964 - are planning a trip involving backpacking. While 35 per cent of baby boomer respondents said they regretted not having travelled more when they were younger, others, such as Wendy and David, think that spending less on accommodation will enable them to spend more time overseas and see more. Just as baby boomers made backpacking through Europe a rite of passage, they are now rewriting the rules of mature travel and retirement.</p> <p>Joshua Nu'u-Steele, Booking.com's New Zealand area manager, said many baby boomer backpackers are making up for lost time, while realising there's only so much time left.</p> <p>"A lot of that age group haven't had the opportunity to travel yet and want to do it while they still can."</p> <p>Like younger travellers, Joshua says they are seeking unique experiences and, while often more affluent than younger backpackers, are open to "alternative accommodation".</p> <p>Charli Bateson, product and marketing manager with Jucy Group, which runs hostels in Auckland, Wellington and Christchurch as well as hires out vehicles, thinks the relative ease and affordability of international travel these days is prompting more baby boomers to give backpacking a go. Millennials, she says, are also "re-educating" them about what modern backpacking entails.</p> <p>"Most hostels now have en-suite rooms as well as dorms, just not all the five-star facilities. With the more adventurous older travellers especially, they would rather spend their money on travelling and activities than a room they'll probably only spend a few hours in."   </p> <p>Wendy and David returned to New Zealand in the mid 80s after three years in Europe to find Queenstown in the midst of a building boom.  </p> <p>"We got swept up in it and never left," Wendy says. "We built a house and then another house and had a family so there was no money for travelling. There's a conception that baby boomers have had it all handed to them but we did work incredibly hard - six to seven days a week. Everything we did, we did ourselves."</p> <p>They both still work - Wendy as a creative writing teacher and David as a museum director - and, when they do get time to travel, prefer to spend their money on activities and food than accommodation.</p> <p>"I always think it's a complete waste spending money on accommodation," Wendy says. "I could sleep under a tree but the husband is not so keen."</p> <p>On a five-week trip to Cambodia and Vietnam four years ago, which Wendy describes as "just astounding", they slept in some very basic accommodation.</p> <p>"In Cambodia, we stayed on an island in little huts. Most of the other people there were way younger but it didn't matter. I just love talking to people about their lives."</p> <p>In Vietnam, the couple took a train to Sapa which Wendy says was like something out of the Cold War, sharing a compartment with a young couple on their honeymoon ("poor folks"), before joining a guided trek, staying with members of local hill tribes.</p> <p>"It was muddy, dirty, wet and hot," Wendy says. "The oven was a hole in the floor - it was incredibly basic. I can't imagine a lot of people my age would want to do it but I loved every minute of it."</p> <p>The couple spent their money on visiting attractions such as Angkor Wat, museums and eating everything they had been told not to at street food stalls. Invited out to dinner one night by fellow westerners, they were disappointed to discover the menu was Europeanised.</p> <p>"We asked if they had tried street food and they said "oh no, you'll get sick". I kind of felt a bit sad for them."</p> <p>The couple are now planning a four-month trip to Europe, intending to stay at backpacker accommodation and "call on a few favours" with friends who have stayed with them in Queenstown to keep costs down. They will be travelling with backpacks small enough to take as carry-on luggage on the plane and cooking at their hostels so they can eat as the locals do.</p> <p>At this stage, they think they will begin in Belgium in France, where they will visit WWI and II battlefields, and then travel to Scotland (Wendy has become more interested in exploring her Scottish heritage as she gets older), England, Ireland and perhaps Croatia and Poland.  </p> <p>In some ways, backpacking is less risque than it was back in the 80s, Wendy says.</p> <p>"We use websites to see what's popular and, with reviews, there's a lot less chance of ending up somewhere with bed bugs. In New York [in the 80s], we stayed in a youth hostel that turned out to be the most horrifying place - the rooms were smaller than cells and it was full of prostitutes."</p> <p>As frequent caravanners, Wendy says she and David have no qualms about backpacking.</p> <p>"I just enjoy the energy of young people. If we're in a hostel or backpackers, being among younger people I find it fantastic."</p> <p>Barbara Iverson, a 79-year-old Aucklander, is another whose fond memories of staying in hostels in her younger years prompted her to reconsider it as a more mature traveller.</p> <p>A keen rower for about 50 years, Barbara had always wanted to visit Lake Bled in Slovenia which, in rowing circles is just as renowned for its international regattas as its photogenic church on an islet.</p> <p>Barbara was in town for the World Rowing Masters Regatta last December, an event she has competed in herself in the past, and decided the local hostel "was the best way to go" because of its reasonable prices and close proximity to the lake.</p> <p>Arriving to find she was staying on the top floor, Barbara says she "had to bribe a young rower" to carry up her suitcase, but other than that, had a "very comfortable" experience.</p> <p>"There was a little alcove that looked over the castle. The view was just magical."</p> <p>Barbara says there was a variety of people staying at the hostel, of a variety of ages, and that everyone was "very helpful". While a few of the rower guests liked to party, she said most were keen to get to bed early after a long day on the lake.</p> <p>"It was easy to make your meals and the bathroom was good. You just had to be respectful of other people."</p> <p>Barbara says she would recommend staying at hostels and using cheaper forms of transport to "more relaxed" older travellers, provided they're prepared to "expect the unexpected".</p> <p>"But if things are not right or you need a favour, don't hesitate to ask," she advises.</p> <p>With an aging global population and technology making international travel easier and cheaper than ever before, the baby boomer backpacking trend looks set to continue.</p> <p>To Wendy, this comes as little surprise.</p> <p>"I think they grey tsunami are very fit and active and they've worked hard and now they want to play hard," she says.</p> <p><em>Written by Lorna Thornber. Republished with permission of <a href="http://www.stuff.co.nz/" target="_blank"><strong><span style="text-decoration: underline;">Stuff.co.nz.</span></strong></a></em></p>

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