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Home ownership is slipping out of reach. It’s time to rethink our fear of ‘forever renting’

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/dorina-pojani-413644">Dorina Pojani</a>, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> A wide range of voices in the Australian media have been <a href="https://www.theguardian.com/australia-news/2024/dec/05/share-with-parents-or-rent-forever-i-have-put-life-on-hold-while-trying-to-buy-a-house">sounding the alarm</a> about the phenomenon of “forever-renting”. This describes a situation in which individuals or families are <a href="https://www.abc.net.au/news/2024-08-10/young-people-priced-out-of-home-ownership/104202602">unable to transition</a> from renting to home ownership, due to rising property values and wages that can’t keep up. Forever-renting is often framed as a terrible condition that should be avoided at all costs – that renting is only acceptable in the short term, as an individual or family saves for a down-payment. The underlying implication is that the ultimate goal in life for just about every Australian should be to own a house – or at least a condominium unit. This only serves to stigmatise renters, who currently make up <a href="https://www.abs.gov.au/statistics/people/housing/housing-occupancy-and-costs/2019-20">nearly a third</a> of Australian households. Demographic research indicates <a href="https://www.jstor.org/stable/24639395">about 15% of Australia’s population</a> changes address every year. Many of these moves require rental accommodation. And, yes, millions of Australians will <a href="https://www.ahuri.edu.au/analysis/news/rising-proportion-forever-renters-requires-tax-and-policy-re-think">rent for their whole life</a>. Clearly, we need to change our thinking around renting to bring it into step with reality. We must accept that the proportion of renters may never go down – or may even increase – and that that’s not necessarily a bad thing. <h2>Where did this attitude come from?</h2> The Australian tradition of home ownership was established in the early decades of European settlement. To make what we now call the “Australian dream” happen, the continent had to be treated as a tabula rasa, or blank slate. A mass of Indigenous people were <a href="https://theconversation.com/refugees-in-their-own-land-how-indigenous-people-are-still-homeless-in-modern-australia-55183">dispossessed</a>. Migration to Australia offered impoverished Britons an opportunity to own a house and plenty of land. In the old country, in contrast, real estate ownership had been a privilege of the gentry. Postwar waves of immigrants from southern Europe and East Asia were also intent on home ownership. In a low-density nation with smallish cities and cheap land, owning a home made sense. Now, urban land is no longer cheap and our <a href="https://www.apimagazine.com.au/news/article/scale-of-urban-sprawl-in-australia-hurting-more-than-just-the-environment">cities have sprawled</a> beyond what’s sustainable. <h2>Renting can have advantages</h2> The first step towards rethinking renting as a norm is acknowledging it can have some significant and often overlooked advantages. For some, renting is a <a href="https://www.emerald.com/insight/content/doi/10.1108/09604521011027598/full/html">lifestyle preference</a>. Ownership comes with burdens such as house and garden maintenance. This makes renting much more convenient and carefree for some demographics, including young people and older adults. Another key advantage of renting is the <a href="https://www.google.com.au/books/edition/Homeownership_and_the_Labour_Market_in_E/GwoUDAAAQBAJ">employment flexibility</a> it can provide. Renters can look for work outside their commute range and are less tied to particular employers. There’s some evidence that high levels of home ownership could even damage the overall labour market. Previous <a href="https://www.nber.org/papers/w19079">research</a> by the US National Bureau of Economic Research has shown that increasing home ownership leads to less labour mobility, longer commutes, and fewer new businesses because homeowners are less likely to move. <h2>Safe as houses?</h2> One common argument against renting is that investing in your own home is a “safe bet”. But we perhaps need to rethink this unquestioned reliance on housing as a store of wealth. Those who enter the housing market for investment purposes should be aware of several issues. Over the long term, housing prices have historically shown a <a href="https://www.dpn.com.au/articles/house-price-growth-australia-over-30-years">general upward trajectory</a>, driven by population growth and limited land supply in desirable areas. In the short term, however, housing prices can be <a href="https://press.uchicago.edu/ucp/books/book/chicago/H/bo20832545.html">quite volatile</a>. They may move up, down, or stay the same. This depends on broader economic cycles, market conditions and interest rates. Think of the housing bubble in the United States, which led to a global recession in 2008, or the <a href="https://www.abc.net.au/news/2025-01-07/china-property-crash-a-warning-for-australian-housing-market/104788660">current downturn in China</a>. The cycles in property prices are often worsened by <a href="https://www.jstor.org/stable/1914185">psychological biases</a> that can lead to overoptimism during booms or panic during busts. Investors may win or lose. <h2>Compounded by climate change</h2> In the contemporary era, we also need to factor in climate change. Areas that are currently desirable may become unappealing before too long – due to <a href="https://www.climatecouncil.org.au/resources/how-hot-will-your-neighbourhood-be-by-2050/">heatwaves</a>, <a href="https://theconversation.com/one-of-the-most-extreme-disasters-in-colonial-australian-history-climate-scientists-on-the-floods-and-our-future-risk-178153">floods</a> or <a href="https://theconversation.com/la-is-on-fire-how-will-australia-cope-when-bushfires-hit-sydney-melbourne-or-another-major-city-246967">fires</a>. Natural disasters, or even just growing disaster risks, can prompt large drops in property prices and massive population movements. To illustrate: during the pandemic, South East Queensland began to draw many domestic migrants as other states struggled to contain the virus. People from cooler southern states were also attracted by the region’s mild winter climate. In 2024, Brisbane became Australia’s <a href="https://www.realestate.com.au/news/uneven-price-growth-reshuffles-rankings-of-australias-most-expensive-cities/">second-most expensive</a> city for property values. That might appear to bode well for property buyers who’ve invested millions of dollars. But one <a href="https://rmets.onlinelibrary.wiley.com/doi/abs/10.1002/joc.5998">2019 study</a> has predicted that temperature rises could make Brisbane “<a href="https://www.abc.net.au/news/2019-06-22/temperature-increases-from-climate-change-brisbane-unliveable/11227404">unbearably hot</a>” by 2050. In this context, renters may be more adaptable than owners. <h2>A more renter-friendly Australia</h2> None of this is to argue that everyone should be a renter, or that renters should be left to the whims of the market. In Australia, current rent increases are <a href="https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release">outpacing</a> both wage growth and inflation (CPI). The rental affordability crisis has driven a <a href="https://homelessnessaustralia.org.au/rough-sleeping-surges-as-homelessness-crisis-worsens-new-report/">recent surge</a> in homelessness. There is a wide range of policy tools available to us, many of which have been shown to <a href="https://www.abc.net.au/news/2024-10-16/build-to-rent-fix-housing-crisis-australia-us-uk-hong-kong/104458458">work relatively well in other countries</a> and could be adopted here. These include: <ul> <li> <a href="https://thefifthestate.com.au/housing-2/the-case-for-rent-control-and-historical-norms-in-rent-increases/">rent caps</a>, which tie allowable rent increases to the CPI (Australia already <a href="https://treasury.gov.au/sites/default/files/2019-03/round5-5.pdf">regulates the price of utilities</a> in this way) </li> <li> nationwide no-ground eviction bans (already in place in <a href="https://www.choice.com.au/money/property/renting/articles/no-grounds-evictions-update">some states</a>) </li> <li> normalisation of <a href="https://www.abc.net.au/news/2021-06-28/how-to-find-a-long-term-rental-home/100217074">long-term leases</a> beyond 12 months and restrictions on <a href="https://cities-today.com/barcelona-set-to-ban-short-term-rentals/">short-term rentals such as Airbnb</a> </li> </ul> More vulnerable renters, including people with disabilities, single parents, victims of domestic abuse, those on low incomes, and older retirees, need extra protections. The supply of rental units should also be increased, through <a href="https://www.ahuri.edu.au/analysis/brief/what-build-rent">build-to-rent</a> and <a href="https://www.statedevelopment.qld.gov.au/news-and-events/granny-flats-provide-housing-choice-in-tight-rental-market">granny flat</a> construction, for example. Landlords should not be vilified either. In an unregulated market, they are often cast as “<a href="https://www.realestate.com.au/news/robber-barons-great-landlord-myth-exposed/">robber barons</a>” and “<a href="https://www.theguardian.com/commentisfree/2018/apr/16/landlords-social-parasites-last-people-should-be-honouring-buy-to-let">social parasites</a>”. If tenants were protected from excessive rent increases and evictions, landlordism could also be recast as an essential service that yields reasonable profits to providers.<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;" src="https://counter.theconversation.com/content/245848/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/dorina-pojani-413644">Dorina Pojani</a>, Associate Professor in Urban Planning, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/home-ownership-is-slipping-out-of-reach-its-time-to-rethink-our-fear-of-forever-renting-245848">original article</a>. </div>

Money & Banking

Fruit and veg, exercise, frequent bloodletting and more tips on staying healthy from medieval travellers

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/megan-cassidy-welch-2265245">Megan Cassidy-Welch</a> Travellers have always faced health hazards when far from home. Medieval people were no exception. Pilgrims, crusaders and others <a href="https://www.cambridge.org/core/books/crusade-propaganda-and-ideology/425DB24A44F76AD40CE6A0CD113627D5">were warned</a> by preachers such as 13th century Jacques de Vitry of “dangers on land, dangers at sea, the dangers of thieves, the dangers of predators, the dangers of battles”. There were also dangers to health: disease, lack of good nutrition and water, injury, accident and poisoning. Medieval travellers were active and innovative in trying to prevent ill health while away. Although the adjective “medieval” continues to be used disparagingly to imply backwardness in medical and scientific knowledge, this history of preventive medicine shows us something different. <h2>From good sleep to ‘good’ leeches</h2> One especially interesting set of practical health care instructions for travellers is the De regimine et via itineris et fine peregrinatium (About the regimen and way of the journey for the traveller). The text was composed by Adam of Cremona in about 1227–28 for the German emperor Frederick II, who was about to set out on crusade. Unedited and <a href="https://archiv.ub.uni-marburg.de/ubfind/Record/urn:nbn:de:hebis:04-eb2020-0447/TOC#tabnav">surviving in a single manuscript</a>, Adam draws heavily on <a href="https://iep.utm.edu/avicenna-ibn-sina/">Ibn Sina’s</a> 11th century Canon of Medicine, used for medical teaching in medieval universities. Adam advised bloodletting (phlebotomy) should be performed prior to the emperor’s journey and then regularly throughout, depending on the “will and mood” of the stars. Bloodletting was central to medieval medical practice. It used leeches or sharp knife-like instruments to nick the vein and cause blood to drain from the body. It was performed both preventatively and, in the case of some medieval religious communities, periodically as part of monastic bodily regulation and discipline. Devoting some 25 chapters of his text to phlebotomy, Adam drew on the idea that bloodletting would regulate the <a href="https://en.wikipedia.org/wiki/Humorism">humours</a> (the four fluids thought to make up the body: blood, yellow bile, black bile and phlegm), evacuating “bad” ones and setting the body in balance to prepare for healthy travel. While the concept of the four humours has since been abandoned by modern medicine, bloodletting and “leech therapy” continue to be performed in some <a href="https://www.svhm.org.au/newsroom/news/medical-leech-therapy">medical settings</a> for specific purposes. Adam advised all travellers should be mindful of the instruments of bloodletting – especially leeches – while on the road. His writing included warnings to distinguish between leeches: good (round and shiny) and bad (black or blue in colour and found near fetid water). He also gave careful instruction on how to desalinate water, as well as advice about diet (as close as possible to the traveller’s home diet, with plenty of fruit and vegetables), the importance of rest and adequate sleep, and the importance of regular bathing. Dysentery was a well known hazard of travel, especially for crusaders, and Adam’s guide reflected all travellers’ wish to avoid it by keeping the digestive system in balance. <h2>Balancing body and spirit</h2> Knowledge about water supplies was especially important for travellers. <a href="https://www.routledge.com/Pilgrimage-to-Jerusalem-and-the-Holy-Land-1187-1291/Pringle/p/book/9781138107250?srsltid=AfmBOooE6jGCvBdtC2UYXgG96RwjAzt_iliVzYf-8dV7QZIuZs7NJqmB">One pilgrimage guide</a> informed travellers one of the best sources of water in the holy land was just outside Haifa, in modern-day Israel. <a href="http://italicapress.com/index063.html">Theodoric’s Guide for the Holy Land</a> reminded travellers there was no water in Jerusalem other than the rainwater collected by inhabitants and stored in cisterns for daily use. Medieval travellers were also reminded to take particular care of their feet. In 1260, <a href="https://www.oxfordreference.com/display/10.1093/acref/9780198662624.001.0001/acref-9780198662624-e-5935?rskey=aEEXKs&result=1">Vincent of Beauvais</a> gave instructions to travellers to use poultices (a dressing for wounds) made of oil, plants and quicksilver (mercury) to prevent and manage blisters – an all too frequent ailment experienced by pilgrims walking long distances. Adam of Cremona suggested travellers regulate their pace as they walked, especially on unfamiliar and rough roads. The overall benefit of exercise was generally understood. Preachers such as Jacques de Vitry told his congregations <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1468-229X.13238">movement made the body healthy</a> both physically and spiritually, so should be undertaken regularly before and during a journey. Different climates and environments meant encounters with dangerous fauna. The holy land was said to be home to poisonous serpents. Travellers took with them <a href="https://www.researchgate.net/publication/286847771_The_use_of_the_'Jericho_Tyrus'_in_theriac_A_case_study_in_the_history_of_the_exchanges_of_medical_knowledge_between_Western_Europe_and_the_Realm_of_Islam_in_the_middle_ages">theriac</a>, an antidote made in part from snake flesh in case of a bite. This would be ingested or smeared on the wound. Crocodiles in Egypt were also often mentioned as a hazard. There were no antidotes for an attack, but forewarning travellers with knowledge helped them to remain alert. Medieval travellers did not leave their fate entirely in God’s hands. Even the crusaders took precautionary measures to balance both bodily and spiritual health before and during their journeys. They confessed sins, sought blessings to protect their property and baggage and carried with them charms and amulets that were thought to ensure “the health of body and protection of the soul”, as <a href="https://www.journals.uchicago.edu/doi/abs/10.1017/S0038713413000511">one 12th century Italian blessing</a> explained. This “divine prophylaxis” ran alongside more practical care of the physical body – a holistic view of health as corporeal and spiritual. The actions and remedies available to medieval pilgrims and other travellers may seem limited and perhaps dangerous to modern readers. But like all travellers, medieval people used the knowledge they had and tried hard to maintain good health in sometimes difficult conditions. The urge to remain well is a very human one, and its long medieval history reminds us that good health has always been carefully managed through prevention just as much as cure.<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;" src="https://counter.theconversation.com/content/244638/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/megan-cassidy-welch-2265245">Megan Cassidy-Welch</a>, Professor of History and Dean of Research Strategy Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/fruit-and-veg-exercise-frequent-bloodletting-and-more-tips-on-staying-healthy-from-medieval-travellers-244638">original article</a>. </div>

Travel Trouble

“That is a real hustler!”: Retiree's savings stun Aussies

An 84-year-old retiree has stunned Aussies after revealing just how much money he has saved. As part of property app Copoist's latest social media series, where they ask people of all ages how much they have in savings, one senior revealed that he had $2.3 million in savings "at the moment". While he didn't go into detail about how he amassed his wealth or whether he owns multiple properties, people online were blown away by his savings. “This is crazy! Who has the means to save?” One asked. "Must be nice", another commented. "That is a real hustler!" a third complimented. However, the video also highlighted the huge wealth divide, especially among men and women, with one 73-year-old woman revealing that she had over $100,000. Another 75-year-old woman said she had had over $70,000, and a 64-year-old said she had $61,000, while another man around the same age as them had $2 million saved up. <div class="embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; outline: none !important;"><iframe class="embedly-embed" style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; outline: none !important; width: 535px;" title="tiktok embed" src="https://cdn.embedly.com/widgets/media.html?src=https%3A%2F%2Fwww.tiktok.com%2Fembed%2Fv2%2F7458541912367189254&display_name=tiktok&url=https%3A%2F%2Fwww.tiktok.com%2F%40coposit_street%2Fvideo%2F7458541912367189254&image=https%3A%2F%2Fp16-sign-va.tiktokcdn.com%2Fobj%2Ftos-maliva-p-85c255%2FoMB0ABiGEwgQrCMnqhJFEBSgIBjfmpeEIQDIwT%3Flk3s%3Db59d6b55%26x-expires%3D1737151200%26x-signature%3DczaQ96WizT%252FTVSaqXDyvNBgw7to%253D%26shp%3Db59d6b55%26shcp%3D-&type=text%2Fhtml&schema=tiktok" width="340" height="700" frameborder="0" scrolling="no" allowfullscreen="allowfullscreen"></iframe></div> The savings disparity in the clip sparked a huge online conversation, with one writing: “How come men have millions and women cannot even have half a million? Mind blowing." “My first thought was okay so all the men have more savings than woman funny that. If life has shown me anything, it is that women take 10 years off raising their children, so his saving is hers,” another added. “It is all the men with a lot more,” a third pointed out. Financial comparison website Finder has found that generally still have more money than women in Australia, with the average woman having $42,664 in cash savings, compared to $50,479 for men. Finder’s Equal Pay Day Report 2024 found the main hurdles to women’s earning capacity have been having a baby, choosing a flexible job that allows them to take care of family, and the industry or career that they are in. They also found that the average Aussie had $40,000 in savings in December 2024, but 43 per cent of people had less than $1,000. Image: TikTok/coposit_street

Money & Banking

World's safest airline for 2025 revealed

The world's safest airline has been revealed, with two major carriers from Down Under nabbing the top two spots in the prestigious AirlineRatings.com rankings. Air New Zealand has been rated the safest airline in the world, with Qantas coming in a close second and only 1.50 points separating the two carriers. Cathay Pacific, Qatar Airways and Emirates came equal third, while Virgin Australia came in fourth and Etihad Airways in fifth. “It was extremely close again between Air New Zealand and Qantas for first place with only 1.50 points separating the two airlines,” AirlineRatings.com CEO Sharon Petersen said. “While both airlines uphold the highest safety standards and pilot training, Air New Zealand continue to have a younger fleet than Qantas which separates the two.” AirlineRatings.com is the world's only safety and product rating website, and Air NZ also won the title last year and in 2022, with Qantas nabbing the top spot in 2023. The watchdog monitors 385 airlines and takes into account serious incidents, recent fatal accidents, audits from aviation’s governing and industry bodies, profitability, safety initiatives, expert pilot training assessment and fleet age. They also shared the rankings for the safest low-cost airlines, with Cathay Pacific-owned Hong Kong Express claiming the top spot and Qantas-owned Jetstar coming in second. “Everyone at Qantas and Jetstar is incredibly proud of our commitment to safety, which will always be our number one priority. The whole aviation industry is focused on ensuring flying remains the safest way to travel through continual learning and improvement,” A Qantas Group spokesperson told news.com.au. While Air NZ CEO Greg Foran said: “I’m very proud of our entire Air New Zealand whānau for consistently and diligently putting safety at the forefront of everything we do." “Operational integrity is at the heart of our business. We have a strong culture of safety that puts our team and passengers first. I’m proud of how this culture has been fostered over many years and how it underpins every aspect of the airline’s everyday operations.” The Top 25 World's Safest Full-Service Airlines for 2025: <ol> <li>Air New Zealand</li> <li>Qantas</li> <li>Cathay Pacific; Qatar Airways; Emirates</li> <li>Virgin Australia</li> <li>Etihad Airways</li> <li>ANA</li> <li>EVA Air</li> <li>Korean Air</li> <li>Alaska Airlines</li> <li>Turkish Airlines (THY)</li> <li>TAP Portugal</li> <li>Hawaiian Airlines</li> <li>American Airlines</li> <li>SAS</li> <li>British Airways</li> <li>Iberia</li> <li>Finnair</li> <li>Lufthansa/Swiss</li> <li>JAL</li> <li>Air Canada</li> <li>Delta Airlines</li> <li>Vietnam Airlines</li> <li>United Airlines</li> </ol> Images: Shutterstock

Travel Tips

Airline worker reveals the kind of suitcase most likely to get lost

An airline worker has warned passengers of the type of suitcases he believes are "more likely" to get lost. The airport maintenance worker, who is based in the US, shared in a Reddit thread some advice to travellers to avoid losing their luggage during a holiday. The worker pointed out that one airline alone can have "3,000 to 5,000" bags per hour passing through the airport at peak flight times, and one simple design choice can make a huge difference on where your luggage ends up. While he suggests a hard shell suitcase as the best choice for luggage to protect your belongings, the worker warns the colour or pattern of your bag could be a cause for it to be lost. "Mirrored colours and paint schemes with a metallic flake act like reflectors and send the beam back to the sensor. Basically turning the bag invisible," he wrote. "Once that happens, it can't be diverted to its assigned location to be loaded on the plane it belongs on.” "We only see it when it passes through the tag scanners again, but with the sheer volume of bags, it gets hard to catch them." The worker also warned against using coloured ribbons, ropes or scarves, as well as decorative bag covers, to identify your luggage, as they can cause widespread delays. "While helpful to identify your bag, it can get caught downstairs and can delay bags," he wrote, adding he once had to cut a bungee cord off a bag that had gotten caught in a roller and affecting operation. "Do what you feel is best to help identify your bag, but just be warned some items can help cause delays." Image credits: Shutterstock

Travel Tips

Woolies shopper shocked by 15-year-old grocery receipt

A Woolworths shopper has been left stunned after unearthing a 15-year-old grocery receipt and comparing what the same order would cost today. Amy Coulston took to TikTok after finding her mum's grocery receipt from January 14th 2010 and decided to do a comparison to 2025 supermarket prices. "It's been 15 years since this shopping trip and I wanted to see the difference in price from then and now," she said. "I added in as much as I possibly could (but) there's brands on here that just don't exist anymore." The overall price for 30 items, which included chicken pies, salami, cereal and a DVD of the Pixar animated film Up, came to $127.26 in 2010. She looked for all the same items, or close comparisons, on the Woolworths website and the January 2025 bill came to $170.45. <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-permalink="https://www.instagram.com/reel/DEopeK3yGWq/?utm_source=ig_embed&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/reel/DEopeK3yGWq/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by Amy │ Aussie Side Hustles 📲 (@amycoul.money)</a> </div> </blockquote> "That's an increase of 35 per cent," Ms Coulston said. While many people took to her comment section to say the price comparison wasn't as significant as they thought it would be, others took another factor into consideration. "A 35 per cent (increase) over (that) period isn't actually that bad. It's the fact that the product is shrinking as the price goes up," they wrote. While Ms Coulston did not claim that all, or even most, of the products had shrunk in size over time, she did mention one popular treat in particular. "There's definitely a lot of discrepancies on here when it comes to things getting smaller, so for example, the Turkish Delights were 55 grams and now they're 50 grams," she said. One commenter spoke for many, though, in pointing out a glaring detail in the most recent shop. "It doesn't seem like a big increase over that period of time. The majority of the increase was over the last two years!" they wrote. "Like cheese prices didn't gradually increase, they just jumped from 6 dollars to 10 dollars overnight." Image credits: Woolworths / TikTok

Money & Banking

Research suggests those who use buy-now-pay-later services end up spending more

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/ashish-kumar-1056067">Ashish Kumar</a>, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Once, borrowing money to make a purchase was a relatively tedious process, not a spur-of-the-moment thing. True, some stores offered lay-by plans that would let you pay for goods in instalments. But if they didn’t, and you didn’t already have a credit card, you’d have to go to a bank and apply for one. That would mean providing a range of supporting documents, negotiating an appropriate credit limit, and waiting for approval. It’s unlikely you’d apply for credit just for a single, small purchase. In recent years, though, the financial technology or “fintech” revolution in the customer credit market has changed all that, with the meteoric rise of buy-now-pay-later (BNPL) services. BNPL credit allows consumers to split their purchases into smaller, interest-free instalments. It is often directly integrated into online checkouts with fast approval, making it easy to purchase something instantly and spread the cost over coming months. There are some obvious risks. Many BNPL providers charge less visible fees, such as late payment fees and account maintenance fees. In many countries, the BNPL sector is also less regulated than traditional credit. But does it also change our spending habits? Our recent <a href="https://doi.org/10.1016/j.jretai.2024.09.004">research</a> uncovered a concerning insight: consumers who use BNPL services end up spending more money online than those who don’t. This effect is particularly strong among younger shoppers and those with lower incomes. <h2>Our research</h2> We <a href="https://doi.org/10.1016/j.jretai.2024.09.004">analysed</a> data from an online retailer in the Nordic region that offered customers three payment options for online purchases: card, pay on delivery and BNPL. We found that consumers who used BNPL spent an average of 6.42% more than those who didn’t. This increase was particularly noticeable for low-ticket items, suggesting that BNPL may encourage customers to buy more when shopping for smaller, everyday things. Why might this be the case? For one, BPNL spending is constrained by the size of the loans on offer. In the US, the average BNPL loan amount is <a href="https://files.consumerfinance.gov/f/documents/cfpb_consumer-use-of-buy-now-pay-later_2023-03.pdf">US$135</a> (A$217). It may also be related to what’s known in economics as the “<a href="https://www.theguardian.com/business/2008/dec/22/recession-cosmetics-lipstick">lipstick effect</a>”, where customers under financial strain tend to reduce spending on big-ticket items in favour of lower-priced luxuries. Selling such low-ticket items doesn’t always give online retailers the biggest profit margins. But it can play a crucial role in acquiring and retaining customers, and creating opportunities to upsell. Our research also showed that younger, lower-income customers were more likely to spend more when using BNPL services, likely because it provides them with additional “liquidity” – access to cash. <h2>Why might they be spending more?</h2> It’s easy to see why so many consumers like BNPL. Some even think of it as more of a way of payment than a form of credit. The core feature of such services - offering interest-free instalment payments for online purchases - has a significant psychological impact on customers. It leverages the principle that the perceived benefit of spending in the present outweighs the displeasure associated with future payments. This behaviour aligns with theories of “hyperbolic discounting” – our preference for smaller immediate rewards over larger later ones – and the related “<a href="https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/present-bias/">present bias</a>” phenomenon. Our results also suggest customers with high category experience – that is, more familiar with the larger product categories carried by a retailer – and those more sensitive to deals and promotions are likely to spend more when online retailers provide BNPL as a payment option. <h2>A growing influence on spending</h2> The economic impact of BNPL is substantial in the countries that have pioneered its adoption. In Australia, birthplace of Afterpay, Zip, Openpay, and Latitude, it’s <a href="https://www.oxfordeconomics.com/wp-content/uploads/2022/10/AFIA_BNPL_Research_Report-1.pdf">estimated</a> that (allowing for flow-on effects) BNPL services contributed A$14.3 billion to gross domestic product (GDP) in the 2021 financial year. Industry research firm Juniper Research <a href="https://www.juniperresearch.com/press/pressreleasesbuy-now-pay-later-users-to-exceed-670-million-globally/">projects</a> the number of BNPL users will exceed 670 million globally by 2028, an increase of more than 100% on current levels. Substantial projected growth in the sector is attributed to multiple factors. These include increasing e-commerce usage, economic pressures, the flexibility of payment options and widespread adoption by merchants. <h2>Buyer, beware</h2> BNPL services can be a convenient way to pay for online purchases. But it’s important to use them responsibly. That means understanding the potential risks and benefits to make your own informed decisions. Be mindful of your spending. Don’t let the allure of easy payments let you get carried away. Customers should explore beyond the marketing tactics of interest-free split payments and pay close attention to terms and conditions, including any fees and penalties. They should treat BNPL like any other form of credit. Whether you’re a shopper considering using BNPL or a business thinking about offering it, our research highlights that it may have the power to significantly influence spending patterns – for better or worse.<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;" src="https://counter.theconversation.com/content/246686/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/ashish-kumar-1056067">Ashish Kumar</a>, Senior Lecturer, <a href="https://theconversation.com/institutions/rmit-university-1063">RMIT University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/research-suggests-those-who-use-buy-now-pay-later-services-end-up-spending-more-246686">original article</a>. </div>

Money & Banking

Why the royal family is set to receive an eye-watering pay increase

The members of the British royal family are set to receive a record-breaking pay increase, funded by British taxpayers. From April 2025, the amount the royals will receive from the Sovereign Grant - funded by the UK’s public purse – will jump by a whopping £45 million (A$88 million), to £132 million ($260 million). Not everyone is happy about this enormous pay increase, as CEO of Republic Graham Smith said that while the UK remains in the clutches of the cost of living crisis, it is not the time for such a hefty increase to one of the richest families in the world. “This is public money, all of this money comes from the government, at a time when the government is not able to properly fund schools, hospitals police … It is scandalous,” Smith told <a href="https://www.townandcountrymag.com/society/tradition/a63330811/british-royal-family-money-finances-2025/" target="_blank" rel="noopener">Town & Country</a>. “Not only should it not be going up at all, it should be going down.” The increase was first announced last year, with Buckingham Palace officials saying at the time that a huge chunk of that extra cash will be put towards the £369 million ($728 million) bill for long-planned, necessary Palace renovations. The exact amount that is being allocated from this year’s Grant for the work has not been made public. The Grant was established in 2012 in order to help the royal family pay for expenses related to their official duties, with the vast majority usually spent on property maintenance and staffing. When the Grant first came into effect, there were many more working royals which required a larger pool of funding. Now that the royal roster has been stripped back, royal author Richard Palmer believes the public is now “getting less for their money”. He told Town & Country, “I do think that the monarchy in general does a good job for the country and is part of the glue that binds us all together but that doesn’t mean that as an institution, as individuals, they should be able to avoid criticism. They are not above scrutiny.” Image credits: Shutterstock

Money & Banking

Aussie drivers urged to cash in on $140 million in unclaimed funds

The NSW government has urged Sydney motorists to access its toll road relief scheme, with $140 million left unclaimed since the cost-of-living support measure was introduced last year. Drivers who spend more than $60 in tolls weekly can claim the excess back under the "toll cap" introduced by the Minns government to help highly-tolled residents in Western Sydney. On Monday, Roads Minister John Graham said that while $75 million had already been paid to motorists, there's still $140 million yet to be claimed. “I want to remind motorists to get on to the Service NSW website and claim what they are entitled to in relief,” Graham said in a statement. Around 720,000 drivers are eligible for a slice of the payments. Over the past year, more than 276,000 claims were paid since the scheme was introduced, with an average claim of $277, according to the government. There were 115 suburbs where the average claim was $300 or more, including Parramatta, Lidcombe, Schofields, Westmead, Toongabbie, Merrylands and Auburn. “We know people are doing it tough and the toll cap is making it just that little bit fairer for drivers that heavily rely on the toll roads,” Graham said. He also added that reform talks with private toll road companies are still ongoing. In December, the government struck an in-principle deal with Transurban, a toll road operator, for a network-wide pricing system in attempt to ease the impact of toll payments on motorists. “The NSW government is progressing with toll reform to make tolls fairer overall,” Graham said on Monday. Image: Rose Marinelli / Shutterstock.com

Money & Banking

Women spend more of their money on health care than men. And no, it’s not just about 'women’s issues'

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/mike-armour-391382">Mike Armour</a>, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/amelia-mardon-1505419">Amelia Mardon</a>, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/danielle-howe-1492317">Danielle Howe</a>, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/hannah-adler-1533549">Hannah Adler</a>, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a>, and <a href="https://theconversation.com/profiles/michelle-oshea-457947">Michelle O'Shea</a>, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a> Medicare, Australia’s <a href="https://www.health.gov.au/topics/medicare?language=und">universal health insurance scheme</a>, guarantees all Australians access to a wide range of health and hospital services at low or no cost. Although access to the scheme is universal across Australia (regardless of geographic location or socioeconomic status), one analysis suggests <a href="https://grattan.edu.au/news/healthcare-out-of-pocket-costs-an-agenda-for-international-womens-day/">women often spend more</a> out-of-pocket on health services than men. Other research has found men and women spend similar amounts on health care overall, or even that men spend <a href="https://www.publish.csiro.au/ah/pdf/AH18191">a little more</a>. However, it’s clear women spend a <a href="https://www.publish.csiro.au/ah/pdf/AH18191">greater proportion of their overall expenditure</a> on health care than men. They’re also more likely to <a href="https://grattan.edu.au/news/healthcare-out-of-pocket-costs-an-agenda-for-international-womens-day/">skip or delay medical care</a> due to the cost. So why do women often spend more of their money on health care, and how can we address this gap? <h2>Women have more chronic diseases, and access more services</h2> Women are <a href="https://www.abs.gov.au/statistics/health/health-conditions-and-risks/health-conditions-prevalence/latest-release">more likely</a> to have a chronic health condition compared to men. They’re also more likely to report having multiple chronic conditions. While men generally die earlier, women are more likely to spend more of their life <a href="https://www.thelancet.com/journals/lanpub/article/PIIS2468-2667(24)00053-7/fulltext">living with disease</a>. There are also some conditions which affect women more than men, such as <a href="https://theconversation.com/how-biological-differences-between-men-and-women-alter-immune-responses-and-affect-womens-health-208802">autoimmune conditions</a> (for example, multiple sclerosis and rheumatoid arthritis). Further, medical treatments can sometimes be <a href="https://aci.health.nsw.gov.au/__data/assets/pdf_file/0007/967984/CIU-Evidence-Brief-Gender-disparity-and-gender-equality-measures-in-health.pdf">less effective for women</a> due to a focus on men in medical research. These disparities are likely significant in understanding why women <a href="https://grattan.edu.au/news/healthcare-out-of-pocket-costs-an-agenda-for-international-womens-day/">access health services</a> more than men. For example, <a href="https://www.aihw.gov.au/reports/men-women/female-health/contents/access-health-care">88% of women</a> saw a GP in 2021–22 compared to <a href="https://www.aihw.gov.au/reports/men-women/male-health/contents/access-health-care">79% of men</a>. As the number of GPs <a href="https://practices.hotdoc.com.au/blog/the-decline-of-bulk-billing-and-its-impact-on-general-practice-in-australia/#:%7E:text=The%20Medicare%20rebate%20for%20patients,to%20ensure%20their%20financial%20sustainability.">offering bulk billing</a> continues to decline, women are likely to need to pay more out-of-pocket, because they <a href="https://www.aihw.gov.au/getmedia/32ea8a7f-50d5-4047-b70b-92dd63d387b8/aihw-phe239-240-factsheet.pdf.aspx">see a GP more often</a>. In 2020–21, <a href="https://www.aihw.gov.au/reports/men-women/female-health/contents/access-health-care">4.3% of women</a> said they had delayed seeing a GP due to cost at least once in the previous 12 months, compared to <a href="https://www.aihw.gov.au/reports/men-women/male-health/contents/access-health-care">2.7% of men</a>. Data from the <a href="https://www.abs.gov.au/statistics/health/health-services/patient-experiences/2020-21">Australian Bureau of Statistics</a> has also shown women are more likely to delay or avoid seeing a mental health professional due to cost. Women are also more likely to need prescription medications, owing at least partly to their increased rates of chronic conditions. This adds further out-of-pocket costs. In 2020–21, <a href="https://grattan.edu.au/news/healthcare-out-of-pocket-costs-an-agenda-for-international-womens-day/">62% of women</a> received a prescription, compared to 37% of men. In the same period, <a href="https://www.aihw.gov.au/reports/men-women/female-health/contents/access-health-care">6.1% of women</a> delayed getting, or did not get prescribed medication because of the cost, compared to <a href="https://www.aihw.gov.au/reports/men-women/male-health/contents/access-health-care">4.9% of men</a>. <h2>Reproductive health conditions</h2> While women are disproportionately affected by chronic health conditions throughout their lifespan, much of the disparity in health-care needs is concentrated between the first period and menopause. Almost <a href="https://www.jeanhailes.org.au/news/impact-of-pelvic-pain-vastly-underestimated">half of women</a> aged over 18 report having experienced chronic pelvic pain in the previous five years. This can be caused by conditions such as endometriosis, dysmenorrhoea (period pain), vulvodynia (vulva pain), and bladder pain. <a href="https://www.aihw.gov.au/news-media/media-releases/2023/2023-september/1-in-7-australian-women-aged-44-49-have-endometriosis">One in seven women</a> will have a diagnosis of endometriosis by age 49. Meanwhile, a quarter of all women aged 45–64 <a href="https://www.jeanhailes.org.au/research/womens-health-survey/menopause-in-australian-women">report symptoms</a> related to menopause that are significant enough to disrupt their daily life. All of these conditions can significantly reduce quality of life and increase the need to seek health care, sometimes including surgical treatment. Of course, conditions like endometriosis don’t just affect women. They also impact <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC10501128/">trans men</a>, intersex people, and those who are gender diverse. <h2>Diagnosis can be costly</h2> Women often have to wait <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC9518795/">longer to get a diagnosis</a> for chronic conditions. One <a href="https://www.medrxiv.org/content/10.1101/2023.10.12.23296976v2.full-text">preprint study</a> found women wait an average of 134 days (around 4.5 months) longer than men for a diagnosis of a long-term chronic disease. Delays in diagnosis often result in <a href="https://pubmed.ncbi.nlm.nih.gov/33004965/">needing to see more doctors</a>, again increasing the costs. Despite affecting about as many people as diabetes, it takes an average of between <a href="https://pubmed.ncbi.nlm.nih.gov/33050751/">six-and-a-half</a> to <a href="https://pubmed.ncbi.nlm.nih.gov/33004965/">eight years</a> to diagnose endometriosis in Australia. This can be attributed to a <a href="https://pubmed.ncbi.nlm.nih.gov/35928674/">number of factors</a> including society’s normalisation of women’s pain, poor knowledge about endometriosis among some health professionals, and the lack of affordable, non-invasive methods to accurately diagnose the condition. There have been recent improvements, with the introduction of <a href="https://www.health.gov.au/ministers/the-hon-mark-butler-mp/media/historic-medicare-changes-for-women-battling-endometriosis#:%7E:text=In%20addition%20to%20the%20specialised,with%20complex%20histories%20and%20symptoms.">Medicare rebates for longer GP consultations</a> of up to 60 minutes. While this is not only for women, this extra time will be valuable in diagnosing and managing complex conditions. But gender inequality issues still exist in the Medicare Benefits Schedule. For example, both pelvic and breast ultrasound rebates are <a href="https://womensagenda.com.au/latest/the-gender-medicare-gap-is-seeing-women-pay-more-for-ultrasounds-and-other-health-services/">less than a scan for the scrotum</a>, and <a href="https://www.endozone.com.au/treatment/MRI">no rebate</a> exists for the MRI investigation of a woman’s pelvic pain. <h2>Management can be expensive too</h2> Many chronic conditions, <a href="https://www.tandfonline.com/doi/full/10.1080/0167482X.2020.1825374?casa_token=yIlFZg_vJxsAAAAA%3ALwSa5DBMoDDWTiZsU1FC0MLLXkDd_eWBrGa2gr8b6NeRevp4ynlsTD_IMMYV_ek766j2P5C-B4Qy#d1e167">such as endometriosis</a>, which has a wide range of symptoms but no cure, can be very hard to manage. People with endometriosis often use allied health and <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/imj.15494?casa_token=1sc4ZMGvDjIAAAAA%3AIrIY2B-RNVDDnUPMSsHI4axnBiTv-omNDHGlNSpsrm_qbMGY9iQ4htIyco5mj-Qhd7krsp7rfHtcbQ">complementary medicine</a> to help with symptoms. On average, women are more likely than men to use both <a href="https://www.racgp.org.au/afp/2017/may/patterns-of-complementary-and-alternative-medi-2">complementary therapies</a> and <a href="https://www.aihw.gov.au/reports/primary-health-care/general-practice-allied-health-primary-care">allied health</a>. While women with chronic conditions can access a <a href="https://www.servicesaustralia.gov.au/chronic-disease-management-plan?context=20">chronic disease management plan</a>, which provides Medicare-subsidised visits to a range of allied health services (for example, physiotherapist, psychologist, dietitian), this plan only subsidises five sessions per calendar year. And the reimbursement is <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC9346321/">usually around 50% or less</a>, so there are still significant out-of-pocket costs. In the case of chronic pelvic pain, the cost of accessing allied or complementary health services has been found to average <a href="https://link.springer.com/article/10.1186/s12905-022-01618-z">A$480.32 across a two-month period</a> (across both those who have a chronic disease management plan and those who don’t). <h2>More spending, less saving</h2> Womens’ health-care needs can also perpetuate financial strain beyond direct health-care costs. For example, <a href="https://www.ncbi.nlm.nih.gov/pubmed/31600241">women with endometriosis</a> and chronic pelvic pain are often caught in a cycle of needing time off from work to attend medical appointments. Our <a href="https://www.researchsquare.com/article/rs-5480104/v1">preliminary research</a> has shown these repeated requests, combined with the common dismissal of symptoms associated with pelvic pain, means women sometimes face discrimination at work. This can lead to lack of career progression, underemployment, and premature retirement. Similarly, with <a href="https://www.superannuation.asn.au/wp-content/uploads/2024/03/ASFAResearch_ImpactofMenopauseOnRetirement_080324.pdf">160,000 women</a> entering menopause each year in Australia (and this number expected to increase with population growth), the <a href="https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/Menopause/Report/Chapter_3_-_Impact_on_work_and_the_economic_consequences_of_menopause#:%7E:text=3.1This%20chapter%20explores%20the,on%20partners%20or%20family%20members.">financial impacts</a> are substantial. As many as <a href="https://www.superannuation.asn.au/wp-content/uploads/2024/03/ASFAResearch_ImpactofMenopauseOnRetirement_080324.pdf">one in four women</a> may either shift to part-time work, take time out of the workforce, or retire early due to menopause, therefore earning less and paying less into their super. <h2>How can we close this gap?</h2> Even though women are more prone to chronic conditions, until relatively recently, much of medical research has been <a href="https://pmc.ncbi.nlm.nih.gov/articles/PMC8812498/">done on men</a>. We’re only now beginning to realise important differences in how men and women experience certain conditions (such as <a href="https://www.annualreviews.org/content/journals/10.1146/annurev-neuro-092820-105941">chronic pain</a>). Investing in women’s health research will be important to improve treatments so women are less burdened by chronic conditions. In the 2024–25 federal budget, the government committed $160 million towards <a href="https://www.health.gov.au/ministers/the-hon-ged-kearney-mp/media/reforming-the-health-system-to-improve-sexual-and-reproductive-care">a women’s health package</a> to tackle gender bias in the health system (including cost disparities), upskill medical professionals, and improve sexual and reproductive care. While this reform is welcome, continued, long-term investment into women’s health is crucial.<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;" src="https://counter.theconversation.com/content/243797/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/mike-armour-391382">Mike Armour</a>, Associate Professor at NICM Health Research Institute, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/amelia-mardon-1505419">Amelia Mardon</a>, Postdoctoral Research Fellow in Reproductive Health, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/danielle-howe-1492317">Danielle Howe</a>, PhD Candidate, NICM Health Research Institute, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/hannah-adler-1533549">Hannah Adler</a>, PhD Candidate, Health Communication and Health Sociology, <a href="https://theconversation.com/institutions/griffith-university-828">Griffith University</a>, and <a href="https://theconversation.com/profiles/michelle-oshea-457947">Michelle O'Shea</a>, Senior Lecturer, School of Business, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/women-spend-more-of-their-money-on-health-care-than-men-and-no-its-not-just-about-womens-issues-243797">original article</a>. </div>

Caring

Meet the grandparents giving a unique gift to their grandkids for Christmas

The Wallis family are one of many who are steering away from traditional Christmas presents for their grandchildren. Instead of standard presents, Grandpa John and Grandma Chris have found a way to invest in their grandchildren to make a difference in their future. "These days kids have got so much they don't really need a lot more stuff," John Wallis told <a href="https://www.9news.com.au/national/the-grandparents-giving-investments-instead-of-presents-this-year/8c4307f7-0ee3-45d2-acfa-50814d18abde" target="_blank" rel="noopener">9News</a>. Instead of buying gifts for their grandkids, the Wallis' give something to their offspring all year round. "We give a monthly donor a contribution, so $25 each to the six grandchildren each month, and then the fund gets topped up occasionally by uncles and aunts." This kind of unique investment is part of a growing trend for baby boomers to help them invest in their grandchildren's futures. "We are seeing a real rise in those over 60 years, about 25 per cent increase in Australians over 60 opening a kids account," a spokesperson for Vanguard Australia said. Vanguard isn't the only platform, with many banks offering trust accounts for minors, with other portfolios designed for children include online adviser Stockspot and micro-investing platform Raiz. "Even if it was $10 or $15 a month, putting money aside adds up," Chris Wallis said. Image credits: Nine

Money & Banking

Olivia Newton-John's iconic leather jacket sells for astonishing price

Olivia Newton-John's iconic leather jacket that she wore in the classic 1978 musical Grease has sold at auction for almost a million dollars. The biker jacket was sold to a private buyer in Los Angeles for an astonishing USD $476,250 (AU $749,645.84). It had been expected to sell for around $US80,000 — $100,000 ($125,924 —$157,405). It was just one of the many collectors items once owned by the late actress that was sold in the auction Property From the Estate of Olivia Newton-John. Other items up for grabs included her 2002 ARIA Hall of Fame Award, which sold for AU $20,000, her 2014 passport, her turquoise baby grand piano, and a copy of a handwritten speech she once gave. A portion of the proceeds will go to The Olivia Newton-John Foundation Fund — a fund dedicated to researching plant medicine and cancer. The actress originally sold the jacket for a whopping AU $587,000 in 2019 through an auction house, and the buyer shocked her by returning it. The leather jacket remained in her possession until her death in August 2022, after a brave decades-long battle with breast cancer. Image: CPC/THA/ Shutterstock Editorial

Money & Banking

Many people don’t get financial advice even though it can help ensure a comfortable retirement

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/antonia-settle-1019551">Antonia Settle</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Many Australians, particularly those on lower incomes, are often characterised as <a href="https://www.mpmwm.com.au/latest-news/50475">lacking knowledge or interest</a> in superannuation. <a href="https://www.superannuation.asn.au/wp-content/uploads/2024/09/Research-Note-Survey-on-superannuation-and-retirement-Advice-Sept-2024.pdf#_msdynmkt_linkid=48e751d5-debe-4eb2-9309-4bc96b01930a">Research</a> by the Association of Superannuation Funds of Australia (ASFA) confirms this. It found only 51% have sought any sort of financial advice before retiring. Financial advice plays a critical role in helping people maximise their super. But most of us don’t seek professional guidance. To make matters worse, <a href="https://www.theaustralian.com.au/business/wealth/retirement-and-superannuation-questions-not-being-asked/news-story/cc2142c3b32c706ea6ff1dc99dab62a5">superannuation experts</a> say those with small amounts of super are the least likely to seek it. <h2>Financial literacy</h2> The failure of households to approach super like experienced asset managers is often attributed to <a href="https://treasury.gov.au/sites/default/files/2021-02/p2020-100554-ud00b_key_obs.pdf">poor financial literacy</a>. Better <a href="https://www.investopedia.com/terms/f/financial-literacy.asp#:%7E:text=%25%2025%25%200%25-,What%20Is%20Financial%20Literacy%3F,management%2C%20budgeting%2C%20and%20investing.">knowledge</a>, it is often reasoned, would help lower income households make financially savvy decisions. This would help give them a better chance of achieving a comfortable retirement. Getting professional advice about managing retirement savings is a first step towards knowing what you don’t know. Learning to trust independent advice can optimise risk and returns, even if those decisions conflict with our instincts. ASFA <a href="https://www.superannuation.asn.au/wp-content/uploads/2024/09/Research-Note-Survey-on-superannuation-and-retirement-Advice-Sept-2024.pdf#_msdynmkt_linkid=48e751d5-debe-4eb2-9309-4bc96b01930a">research</a> found while trust in super funds was relatively high, only 12% sought information or advice from the funds. <h2>Career interruptions</h2> Some households might have little superannuation because their hourly wages are low and they have long breaks from the workforce. This might be due to raising children, personal illness or caring for others. Instead of being able to rely on public healthcare or pay others to provide this support, they are required to reduce or abandon paid work to do it themselves. This group consists overwhelmingly of <a href="https://www.wgea.gov.au/publications/superannuation-gender-pay-gaps-by-age-group">women</a> They are also unlikely to have benefited from high employer contribution rates, such as those of <a href="https://www.csc.gov.au/Members/Funds-and-products/PSSap">federal public servants</a> or university employees, who have long earned a standard 17%. <h2>Tax and other benefits</h2> Low balance households are also unlikely to have paid large sums into super to avoid income tax. <a href="https://www.apra.gov.au/news-and-publications/apra-releases-superannuation-statistics-for-june-2024">One in every four dollars</a> contributed to super is deposited as voluntary contributions, which attract a low tax rate. But most of these low tax contributions are made by <a href="https://australiainstitute.org.au/wp-content/uploads/2024/06/P1527-Who-benefits-The-high-cost-of-super-tax-concessions-Web-1.pdf">the 20%</a> with the highest incomes. In fact, with <a href="https://povertyandinequality.acoss.org.au/inequality/">70% of superannuation assets owned by the wealthiest 20% of households</a>, low balance households have relatively little to gain. Research shows those with the <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0008/4630688/ri2023n03.pdf">lowest balances</a> believe superannuation is a largely a tool for high income earners to avoid tax. And while financial advice will always be more useful to those who are able to use <a href="https://www.commbank.com.au/articles/tax/five-ways-to-save-tax-using-superannuation.html">super as a tax minimisation strategy</a>, even for low-balance households – getting financial advice is worthwhile. Financial advice can help households choose investments that optimise the risk/return profile of superannuation at each stage of the life cycle. It can help avoid unnecessary fees and taxes and help people make the best decisions about <a href="https://www.investopedia.com/terms/d/drawdown.asp#:%7E:text=A%20drawdown%20in%20retirement%20is,known%20as%20a%20drawdown%20percentage.">spending in retirement</a> so they can get the most out of their super. <h2>Potential sticking points</h2> The <a href="https://www.royalcommission.gov.au/banking#:%7E:text=The%20Royal%20Commission%20into%20Misconduct,into%20misconduct%20in%20the%20banking%2C">2017 royal commission</a> into banking and finance misconduct revealed major conflicts of interest in the advice sector. This only made some people more wary about trusting a stranger with their life savings. At between $4,000 and $12,000 for a <a href="https://www.moneymag.com.au/financial-planning/learning/how-much-does-financial-advice-cost">personal financial plan</a>, independent financial advice is not cheap. There is free counselling to manage debts but there is no free, independent advice for longer-term financial planning. Recent <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/government-unveils-comprehensive-financial-advice">regulatory efforts</a> to better position superannuation funds to provide free financial advice to households will improve access for many. But these efforts won’t resolve the conflict of interest issue, given there is little incentive for funds to suggest investment strategies using other providers. This is particularly important during the <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/retirement-withdrawal-lump-sum-or-income-stream">draw down phase</a>. This is where people start using their super which they receive as either a lump sum or income stream. The products offered by any single super fund to set this up are limited. Superannuation balances can be seriously eroded by <a href="https://www.ato.gov.au/calculators-and-tools/super-yoursuper-comparison-tool">unnecessary fees</a>, inappropriate investments and poorly planned <a href="https://www.superguide.com.au/in-retirement/minimum-pension-payments-reduced">draw down</a> strategies. This is particularly damaging when low balances are involved. <h2>Facing poverty in retirement</h2> As a result, failure to seek financial advice can increase the risk of elderly poverty, especially if people retire without having bought or paid off a home. Any savings that can be preserved can make a meaningful difference to the capacity of such households to have a dignified retirement. For these reasons, access to free and independent advice is critically important for the superannuation system to better serve low-balance households. But free, independent advice is still not available in the superannuation system. It is not surprising low-balance households are reticent to engage in super given the lack of accessible advice. But the peripheral role of low-balance households in a system dominated by Australia’s wealthiest households may play a role in that reticence as well.<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;" src="https://counter.theconversation.com/content/240207/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/antonia-settle-1019551">Antonia Settle</a>, Lecturer, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/many-people-dont-get-financial-advice-even-though-it-can-help-ensure-a-comfortable-retirement-240207">original article</a>. </div>

Money & Banking

Former Nine CEO's new major role

Former Nine Entertainment chief executive Hugh Marks has been appointed the new managing director of the ABC. Marks, who was the chief executive of Nine Entertainment from 2015 to 2020 will replace the ABC's current managing director, David Anderson, who resigned from the position a year after being re-appointed for a second five-year term. Following an “extensive” domestic and international search for a replacement, the ABC board voted unanimously for Marks to take on the role, with ABC chair Kim Williams describing Marks as "an unusually good fit" for the national broadcaster. He added that Marks’ experience was “critical” for the broadcaster’s future. Marks said he was "energised" about leading the ABC. "All Australians, when they want to know the truth, or the facts, or at least the different perspectives on an issue so that they're informed, know that they can come to the ABC and trust that it's that place that they're going to get [that]," he said. When asked about his top priorities, he said: "We should just focus [on]: What is it that we can do well? How can we do it well?" "Focusing on those things and making choices to prioritise on the things that you can do well, I think, is a discussion we're all going to have to have." Image: ABC

Money & Banking

Couple accused of faking six-year-old child's cancer

South Australian couple has been arrested after allegedly faking their child’s cancer diagnosis. A man and woman, both aged 44, allegedly requested donations to fund ongoing medical treatments for their six-year-old child. They even allegedly shaved their child's head, eyebrows and placed them in a wheelchair with bandages to imitate the effects of cancer treatment, but their child was healthy. “Our investigation has confirmed the child is not seeking medical treatment,” Acting Assistant Commissioner John DeCandia said. “We believe this farce illness is causing significant and serious psychological harm to the child and their sibling.” The pair allegedly received around $60,000 in donations over a two-week period. The allegations were first reported to police on November 26, with the couple being arrested and charged with two counts of criminal neglect and deceiving another to benefit self on Friday, according to SA Police. Both of the couple's children have been removed from their custody and are now staying with a relative. The parents were refused bail and will appear in the Port Adelaide Magistrates Court on Friday. Anyone who may have donated money or has further information have also been asked to contact police. Image: Shutterstock

Legal

Ash Barty loses high-profile Optus job

Ash Barty has lost her job as Optus' Chief of inspiration. The Grand Slam tennis champion signed on with the telecommunications company as one of their ambassadors in September 2022, just months after announcing her retirement from tennis. “The decision was taken as we looked to rebuild customer trust and focus on the fundamentals that we know are important to them – a resilient network, great value products and services, and simple, efficient customer service,” an Optus spokesperson told the Australian Financial Review. The telecommunications giant quietly made the move this year, and also parted ways with ex-F1 star Daniel Ricciardo, who was their Chief of Optimism. The role included fronting several campaigns for the brand and featuring in viral stunts. Both stars have updated their LinkedIn accounts to reflect their departure from the jobs. Barty had the role for two years, while Ricciardo was appointed as the Chief of Optimism in September 2020. The Australian Financial Review’s Myriam Robin described Optus’ move as a “one-two kick in the guts for Daniel”, who was cut by Red Bull’s junior team VCARB earlier this year. Optus' move away from Barty and Ricciardo comes after the company's former chief executive Kelly Bayer Rosmarin was replaced by Stephen Rue in September. While Barty lost her job at the telecommunications company, she is still listed as the Women's Tennis Association's National Indigenous Tennis Ambassador on LinkedIn. Since her retirement from tennis at the peak of her career, she has worked as a commentator for Stan during the Paris Olympics, released a series of children's books as part of her Little Ash series, and a tennis-themed book for kids called Tennis Camp Diaries. Image: Instagram

Money & Banking

When a casual punt turns into addictive gambling – how to ensure it won’t really cost you

Gambling is a real and growing problem. Left unchecked, the occasional punt can quickly develop into an addiction, with devastating effects on finances and relationships. Debts can spiral and the stress causes marriages to fail and other relationships to splinter. <a href="https://www.monash.edu/medicine/news/latest/2022-articles/gambling-and-homelessness-a-growing-problem-amongst-older-australians">Research published in 2022 by Monash University</a> also found that gambling and homelessness are “interconnected”, singling out senior Australians as most in the firing line. Before things devolve to that level, consider these steps for putting boundaries around your – or your partner’s – gambling. Remember: Big business is big for a reason In 2023, the <a href="https://www.aihw.gov.au/reports/australias-welfare/gambling">Australian Institute of Health and Welfare (AIHW)</a> noted that “Australians lose approximately $25 billion on legal forms of gambling each year, representing the largest per capita losses in the world”. That equates to every single Aussie losing $909 annually. The reality is these companies exist to make money – and skew the odds in their favour, not yours. Keep that in mind the next time you’re tempted to try your “luck”. Stay active For some people, especially retirees, gambling becomes something to pass the time and get them out of the house. However, you needn’t gamble your money away to keep boredom at bay. There are healthier and more productive ways to do this. For example, there are a myriad of social, sporting, and recreational groups for seniors and retirees. A lack of work commitments offers the flexibility to indulge in travel, both within Australia and overseas. Take the opportunity to socialise with friends and family. Turn your hobby or side hustle into a proper business. Or get a dog you can take for long walks. The possibilities are endless… Don’t punt with what you can’t afford to lose Gambling with a bit of money you have specifically put aside for leisure activities is one thing; gambling your life savings or money needed for essentials like food, bills and keeping a roof over your head is quite another. Having lost that essential money, problem gamblers often become desperate to try and win it back – begging, borrowing or even stealing more, with the repercussions quickly spiralling out of control as that money is often lost too. If you must gamble, only gamble what you can afford to lose: have a budgeted amount and stick to it no matter what. Anyone who deep-down knows they aren’t disciplined with their money would be wise to think twice altogether. Never borrow to gamble As a rule of thumb, money that comes with a cost attached to it should only ever be spent on things that will make more money in the long run, like buying a home or investing. When it comes to gambling, always use your free cash. Money you have borrowed, redrawn from your home loan, or racked up on your credit card will have to be repaid eventually – with interest on top. Choose a place and a time “Most people using gambling machines are older Australians,” <a href="https://www.monash.edu/medicine/news/latest/2022-articles/gambling-and-homelessness-a-growing-problem-amongst-older-australians">Monash University’s Associate Professor Charles Livingstone says</a>. This type of gambling is where things can easily turn sinister. To help keep things in check, limit your gambling to special occasions or events. That might be a flutter on the Melbourne Cup, a game of two-up on ANZAC Day, or a Lotto ticket as a birthday treat. It will mean more if it is tied to something special and an experience you can share with loved ones. Which leads into our next point: Avoid gambling alone Gambling by yourself can be a recipe for disaster. You don’t have a second pair of eyes over what you are doing or that trusted person to step in and say, ‘that’s enough’. In fact, I recommend couples always take a joint approach to their finances, regardless of whether gambling is involved. Leaving all the “money stuff” up to one of you means less accountability and opens the door for shared money and assets to be used improperly. Ask for help If you recognise things are getting out of hand, don’t suffer in silence. Talk things through with your partner, adult children or a trusted friend. Alternatively, contact <a href="https://www.gamblinghelponline.org.au/">Gambling Help Online</a> (1800 858 858) for free support 24/7 right across Australia. The sooner you get help, the faster you can limit the fallout and get things back under control! Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754. Image credits: Shutterstock

Money & Banking

How much do you need to retire? It’s probably a lot less than you think

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> How much do you need to save for a comfortable retirement? It’s a big question, and you’ll often hear <a href="https://www.google.com/search?q=australians+not+saving+enough+for+retirement&oq=australians+not+saving+enough+for+retirement&gs_lcrp=EgZjaHJvbWUyBggAEEUYOdIBCDM4MjRqMGo3qAIAsAIA&sourceid=chrome&ie=UTF-8">dire warnings</a> you don’t have enough. But for most Australians, it’s a lot less than you might think. <h2>You spend less in retirement</h2> Australians tend to overestimate how much they need in retirement. Retirees don’t have work-related expenses and have more time to do things for themselves. And retirees, especially pensioners, benefit from discounts on council rates, electricity, medicines, and other benefits worth thousands of dollars a year. While housing <a href="https://grattan.edu.au/news/the-great-australian-nightmare/">is becoming less affordable</a>, most retirees own their own home and have paid it off by the time they retire. Australians who own their home spend an average of 20–25% of their income on housing while working, largely to pay the mortgage. But that falls to just 5% among retiree homeowners, because they are just left with smaller things such as rates and insurance. <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=337&fit=crop&dpr=1 600w, https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=337&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=337&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/631962/original/file-20241114-15-9h1dzt.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" alt="Notes: Housing costs include mortgage interest and principal repayments and general rates for homeowners, and rental payments for renters. Does not include imputed rent.:" /></a><figcaption>Notes: Housing costs include mortgage interest and principal repayments and general rates for homeowners, and rental payments for renters. Does not include imputed rent. Grattan analysis of ABS (2022) Survey of Income and Housing.</figcaption></figure> And whatever the income you need at the start of your retirement, it typically falls as you age. Retirees tend to spend 15–20% less at age 90 <a href="https://theconversation.com/why-we-should-worry-less-about-retirement-and-leave-super-at-9-5-106237">than they do at age 70</a>, after adjusting for inflation, as their health deteriorates and their discretionary spending falls. Most of their health and aged-care costs <a href="https://grattan.edu.au/report/money-in-retirement/">are covered by government</a>. <h2>So how much superannuation do you need?</h2> Consumer group Super Consumers Australia has crunched the numbers on retiree spending and presents three robust “<a href="https://superconsumers.com.au/journalism/how-much-do-you-need-to-save-for-your-retirement/">budget standards</a>”: <ul> <li>a “low” standard (that is, enough for a person who wants to spend more than what 30% of retirees do)</li> <li>a “medium” standard (spending more than 50% of retirees do), and</li> <li>a “high” standard (more than 70%).</li> </ul> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=600&h=337&fit=crop&dpr=1 600w, https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=30&auto=format&w=600&h=337&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=15&auto=format&w=600&h=337&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/631963/original/file-20241114-19-9h1dzt.png?ixlib=rb-4.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" alt="" /></a><figcaption>How much super do you need? Super Consumers Australia (2023) Retirement Savings Targets</figcaption></figure> Crucially, these estimates account for the significant role of the <a href="https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?context=22526">Age Pension</a> in the retirement income of many Australians. The <a href="https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?context=22526">maximum Age Pension</a> is now A$30,000 a year for singles, and $45,000 a year for couples. To meet Super Consumers Australia’s “medium” retirement standard, a single homeowner needs to have saved only $279,000 in super by age 65 to be able to spend $41,000 a year. A couple needs only $371,000 in super between them to spend $60,000 a year. To meet their “low” standard – which still enables you to spend more than 30% of retirees – single Australians need $76,000 in super at retirement, and couples $95,000 (while also qualifying for a full Age Pension of $30,000 a year). That’s provided that you own your own home (more on that later). <h2>Ignore the super lobby’s estimates</h2> Australians should ignore <a href="https://www.superannuation.asn.au/resources/retirement-standard/">the retirement standards</a> produced by super lobby group the Association of Superannuation Funds of Australia. Their “<a href="https://www.superannuation.asn.au/resources/retirement-standard/">comfortable</a>” standard assumes retirees need an annual income of $52,085 as a single, and $73,337 as a couple. This would require a super balance of $595,000 for a single person, and $690,000 for a couple. But this is a standard of living most Australians don’t have before retirement. It is higher than what 80% of single working Australians, and 70% of couples, <a href="https://insidestory.org.au/the-reassuring-truth-about-retirement-incomes/">spend today</a>. For most Australians, saving enough to meet the super lobby’s “comfortable” standard in retirement can only come by being uncomfortable during their working life. <h2>Most Australians are on track for a comfortable retirement</h2> The good news is most Australians are on track. The federal government’s <a href="https://treasury.gov.au/sites/default/files/2021-02/p2020-100554-udcomplete-report.pdf">2020 Retirement Income Review</a> concludes most future Australian retirees can expect an adequate retirement, replacing a more-than-reasonable share of their pre-retirement earnings – more than the 65–75% benchmark nominated by the review. Even most Australians who work part-time or have broken work histories will hit this benchmark. Most retirees today feel more comfortable financially than younger Australians. And typically, they have enough money to sustain the same, or a higher, living standard in retirement than they had when working. <h2>Rising mortgage debt doesn’t change this story</h2> More Australians are retiring with mortgage debt – about 13% of over-65s had a mortgage in 2019–20, <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/AHURI_RAP_Issue_176_Housing-equity-withdrawal-in-Australia.pdf">up from 4% in 2002–03</a>. But the government’s <a href="https://treasury.gov.au/sites/default/files/2021-02/p2020-100554-udcomplete-report.pdf">retirement income review</a> found most retirees who used $100,000 of their super to pay off the mortgage when they retire would still have an adequate retirement income. This is, in part, because many would qualify for more Age Pension after using a big chunk of super to pay off the mortgage. And retirees can get a loan via the government’s <a href="https://www.servicesaustralia.gov.au/home-equity-access-scheme">Home Equity Access Scheme</a> to draw equity out of their home up to a maximum value of 150% of the Age Pension, or $45,000 a year, irrespective of how much Age Pension you are eligible for. The outstanding debt accrues with interest, which the government recovers when the property is sold, or from the borrower’s estate when they die, reducing the size of the inheritance that goes to the kids. <h2>But what about renters?</h2> One group of Australians is not on track for a comfortable retirement: those who don’t own a home and must keep paying rent in retirement. Nearly half of retired renters <a href="https://grattan.edu.au/news/repairing-australias-retirement-income-system/">live in poverty today</a>. Most Australians approaching retirement own their own homes today, but fewer will do so in future. Among the poorest 40% of 45–54-year-olds, just 53% own their home today, <a href="https://grattan.edu.au/news/the-great-australian-nightmare/">down from 71% four decades ago</a>. But a single retiree renting a unit for $330 a week – cheaper than 80% of the one-bedroom units across all capital cities – would need an extra $200,000 in super, in addition to Commonwealth Rent Assistance (according to the government’s <a href="https://moneysmart.gov.au/retirement-income/retirement-planner">Money Smart Retirement Planner</a>). This is why raising Commonwealth Rent Assistance to help renting retirees keep a roof over their heads should be an urgent priority for the federal government. Australians have been told for decades that they’re not saving enough for retirement. But the vast majority of retirees today and in future are likely to be financially comfortable.<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;" src="https://counter.theconversation.com/content/243596/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, Program Director, Economic Policy, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, Deputy Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-much-do-you-need-to-retire-its-probably-a-lot-less-than-you-think-243596">original article</a>. </div>

Retirement Income

Aussies reminded to look out for this lifesaving roadside marker

Aussie drivers are being reminded about a little-known roadside marker that could save your life. As the holiday season approaches, drivers have been reminded of the purpose of the small green circles that appear on roadside reflector poles. "With the holiday period fast approaching, I wanted to remind residents about green reflectors," federal MP Colin Boyce wrote over the weekend. "You may have noticed some green reflectors on guide posts beside the road on some highways. These indicate that there is a safe place to pull off the road coming up soon so you can indicate your intentions early and be prepared," he said. The number of dots indicate the distance between you and the place you can pull over. Three dots mean that drivers are approximately 500 metres from a safe place to pull over, two means you're 250 metres away and one green circle appears just before the area. "The idea is from road safety advocate and B double truck driver Rod Hannifey, alerting drivers that there is a safe place to pull off the road coming up," the Queensland MP added. "While the idea was originally intended for long haul truck drivers all road users can use them." Many Aussies have shared their enthusiasm for the highway initiative, and how important it was for caravan and motorhome drivers especially. "A lot more people need to know about this. Especially people with caravans," one woman commented. "Would love this all over Australia! There's nothing worse than driving at night with a screaming baby in the back who wants a feed and not knowing if it's a safe place to pull over," another said. Others have shared that they hadn't noticed the markings or realise what it meant. "Have asked a few people recently if they knew what these reflectors stood for, and not one knew. Explanation followed. Should be a compulsory question asked of caravaners," one local wrote. "One of the world's best kept secrets! Thanks," another said. Images: Truck Friendly/ Yahoo

Travel Tips

Aussies reveal their opinion on a "good" salary

A financial content creator has asked everyday Aussies to share their thoughts on what they consider to be a "good" salary in 2024. Hannah took to TikTok and posed the question, “What is a number that if you slapped it on your salary you would be like ‘I am happy with this, I don’t mind if it never goes up again. This is a good salary’?” “Because I think everybody’s opinion is different in this, I know mine certainly was. Somebody told me the other day that their good salary was $270,000, I would say that is extreme for me, but that’s just my personal opinion.” Her question sparked an influx of comments with many varying responses, with people's answers ranging from $80,000 up to a whopping $500,000 as a good salary for Aussies in 2024. One commenter said they would be “happy” with $80,000 to $90,000, while another agreed they would be “comfortable” with $80,000 but would consider $120,000 a “good” salary. Many others said that they would be happy in the $110,000 to $130,000 range, but there were conditions, such as not having to manage people and not having any HECS debt. “I’m currently on $110k-$120k and honestly I struggle to have any fun money while having savings, good super and investments which is why I want more! So my preference would be $250k,” one person said. Some said their answer depended on whether or not children were in the mix, as one person said their “ideal amount” would be $180,000, but that increased to $220,000 with kids. According to the latest figures from the Australian Bureau of Statics, the average yearly salary - calculated by dividing total earnings by the total number of people - has now hit $103,812. The median salary - or the “middle” earnings figure - for full time workers is $88,920. Image credits: Shutterstock

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