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Don’t give mum chocolates for Mother’s Day. Take on more housework, share the mental load and advocate for equality instead

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/leah-ruppanner-106371">Leah Ruppanner</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p>With Mother’s Day right around the corner, many grateful and loving families are thinking about what to give mum to show their appreciation.</p> <p>Should you give her chocolate? Nope. Fancy soaps? Nope. Fuzzy slippers, pyjamas, scented candles? No, no and no.</p> <p>On this Mother’s Day, keep your cash and give your wonderful mother gifts that will actually have a long-term impact on her health and well-being.</p> <h2>1. Do a chore that mum hates and hold onto it … forever</h2> <p>Research <a href="https://www.tandfonline.com/doi/full/10.1080/13545701.2020.1831039">shows</a> men have increased the amount of time spent on housework and childcare and that mothers, over time, are doing less (hooray!).</p> <p>But, women <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1741-3737.2008.00479.x">still do more housework</a> than men, especially when <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/gwao.12497?fbclid=IwAR2dp04p2sFqbDqdehXmXgDSfTYwX3GRzP7ScMJhSOrMePTGQVErR2TTX88">kids are in the home</a>.</p> <p>Further, <a href="https://journals.sagepub.com/doi/abs/10.1177/0891243205285212">men tend to pick up the more desirable tasks</a>, like <a href="https://www.jstor.org/stable/3598304">cooking and playing with the kids</a>, leaving mothers to do the less pleasurable chores (think cleaning toilets and clearing out fridges).</p> <p>The chore divide in same-sex relationships is generally found to be more equal, but some critique suggests equality may suffer <a href="https://www.nytimes.com/2018/05/16/upshot/same-sex-couples-divide-chores-much-more-evenly-until-they-become-parents.html">once kids are involved</a>.</p> <p>This year give your mum (or mums) the gift of equal housework and childcare sharing – start by taking the most-hated tasks and then hold onto them… forever.</p> <p><a href="https://onlinelibrary.wiley.com/doi/full/10.1111/gwao.12727">Research</a> shows housework inequality is bad for women’s mental health. Undervaluing women’s housework and unequal sharing of the chores deteriorates <a href="https://link.springer.com/article/10.1007/s11199-022-01282-5">relationship quality</a>, and <a href="https://journals.sagepub.com/doi/full/10.1177/0038038516674664">leads to divorce</a>.</p> <p>Housework and childcare take up valuable time to keep the family happy, harmonious and thriving, often at the expense of mum’s health and well-being.</p> <p>So, skip the chocolates and show mum love by doing the worst, most drudgerous and constant household chores (hello, cleaning mouldy showers!) and keep doing these… forever.</p> <h2>2. Initiate a mental unload</h2> <p>The <a href="https://www.abc.net.au/news/health/2017-09-14/the-mental-load-and-what-to-do-about-it/8942032">mental load</a> is all of the planning, organising and management work necessary to keep the family running.</p> <p>The mental load is often perceived as list making or allocating tasks to family members.</p> <p>But, it’s so much more – it is the <a href="https://theconversation.com/planning-stress-and-worry-put-the-mental-load-on-mothers-will-2022-be-the-year-they-share-the-burden-172599">emotional work</a> that goes with this thinking work.</p> <p>The mental load is the worry work that never ends and can be done <a href="https://www.tandfonline.com/doi/abs/10.1080/13668803.2021.2002813">anywhere, anytime and with anyone</a> (in, for example, said mouldy shower).</p> <p>Because the mental load is performed inside our heads, it is invisible. That means we don’t know when we or others are performing this labour unless we really tune in.</p> <p>In fact, it is often when we tune in through quiet time, relaxation or meditation that the mental load rears its ugly head. Suddenly you remind yourself to buy oranges for the weekend soccer game, organise a family movie night and don’t forget to check in on nanna.</p> <p>Women in heterosexual relationships are <a href="https://journals.sagepub.com/doi/abs/10.1177/0003122419859007">shown to do more</a> of the mental load with serious consequences for their mental health. But we don’t have a comprehensive measurement of how much women do it nor how it is allocated in same-sex couples.</p> <p>So, on this mothers’ day spend some time talking about, cataloguing, and equalising the family’s mental load.</p> <p>This isn’t just making a list about what has to be done but also understanding <a href="https://www.abc.net.au/news/health/2017-09-14/the-mental-load-and-what-to-do-about-it/8942032">how the mental load</a> connects to the emotional health of the family, and the person carrying this <a href="https://www.newamerica.org/better-life-lab/blog/making-the-mental-load-visible/">invisible labour, worry and stress</a>.</p> <h2>3. Speak up for your mum and all caregivers</h2> <p>Families alone cannot bear the brunt of the caregiving necessary to keep us thriving.</p> <p>Governments, workplaces and local communities also play a critical role. For this mothers’ day, pick an issue impacting mothers (for example, equal pay, affordable childcare or paid family leave) and do one thing to help move the needle.</p> <p>Write a letter to your boss, your local MP, or donate money to an advocacy organisation advancing gender equality.</p> <p>Or, role model these behaviours yourself – normalise caregiving as a critical piece of being an effective worker, create policies and practices that support junior staff to care for themselves, their families and their communities and use these policies.</p> <p><a href="https://journals.sagepub.com/doi/abs/10.1177/0891243216649946">Research</a> shows men want to be equal carers and sharers but often fear what taking time off for caregiving will signal to their employer despite evidence that fathers who request flexible work are perceived more <a href="https://academic.oup.com/sf/article-abstract/94/4/1567/2461609?login=false">favourably</a>.</p> <p>Appearing to be singularly devoted to work was shown to be impossible during the pandemic with kids, spouses, partners, and pets home all day long.</p> <p>Learning to create more care-inclusive workplaces and communities is critical.</p> <p>Paid parental leave, affordable and accessible high-quality childcare, flexibility in how, when and where we work and greater investments in paid sick leave, long-term disability support and aged care are just a few policies that would strengthen the care safety net.</p> <p>We will all be called upon to care at some point in our lives – let’s create the environments that support caregiving for all, not just mum.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/182330/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/leah-ruppanner-106371">Leah Ruppanner</a>, Professor of Sociology and Founding Director of The Future of Work Lab, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p><em>Image credits: Getty Images </em></p> <p><em>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/dont-give-mum-chocolates-for-mothers-day-take-on-more-housework-share-the-mental-load-and-advocate-for-equality-instead-182330">original article</a>.</em></p> </div>

Family & Pets

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Why millions of Aussies are falling behind on superannuation savings

<p>Millions of Aussies are falling behind on their superannuation savings, with nearly one in two Australians on track for a grim retirement. </p> <p>According to research from superannuation and investments company Vanguard, this huge number of Australians have no idea how much they are playing in fees to their super funds, which can greatly impact how much you have in savings when your retirement day comes. </p> <p>“We are coming up against a stubborn statistic in our retirement research again this year — almost one in two Australians still don’t know what they pay in super fees,” Vanguard Investments Australia managing director Daniel Shrimski said.</p> <p>Also adding to the confusion of how much is needed for comfortable gold year is different companies sharing conflicting numbers on what figures to strive for in your superannuation.</p> <p>Superannuation consultancy company Australian Retirement Trust’s latest research shows the average superannuation balance for someone age 35 to 44 is $92,700, however this should be closer to $156,000 to be on track for a “comfortable retirement”.</p> <p>The average worker aged 55 to 64 has $285,900 in super but a 60-year-old needs close to $453,000 in retirement savings, ART said.</p> <p>“In the past 12 months, only one in five of us has checked our super balance,” Australian Retirement Trust executive general manager Anne Fuchs said, adding 70 per cent of Australians feel they don’t have enough money to retire on.</p> <p>“We talk to members all the time who have reached the end of their working life full of regret, wishing they had done something earlier. Australia has a monster problem whereby not enough of us are engaging with our super."</p> <p>“The earlier you start paying attention and understanding how your money is invested ... then you’ll really be able to finish work and put your feet up.”</p> <p>Financial consultancy Link Wealth director and financial adviser Joshua Lee told <a href="https://7news.com.au/news/new-research-shows-aussie-superannuation-savings-falling-short-of-retirement-needs--c-14507773" target="_blank" rel="noopener"><em>7News</em></a> that one of the most important tips for Australians is to take notice and understand their superannuation payments and what they pay in fees.</p> <p>“Take notice of what your account is doing,” he said.</p> <p>“Look at your statement when it comes in every year so you can understand what fees are being deducted from your account because that will have an impact on how much money you have come retirement.”</p> <p><em>Image credits: Shutterstock </em></p>

Retirement Life

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Stay or go? Most older Australians want to retire where they are, but renters don’t always get a choice

<p><em><a href="https://theconversation.com/profiles/christopher-phelps-378137">Christopher Phelps</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a></em></p> <p>As Australia’s population gets older, more people are confronted with a choice: retire where they are or seek new horizons elsewhere.</p> <p>Choosing to grow old in your existing home or neighbourhood is known as “ageing in place”. It enables older people to stay connected to their community and maintain familiarity with their surroundings.</p> <p>For many, the decision to “age in place” will be tied to their connection to the family home. But for many, secure and affordable housing is increasingly <a href="https://theconversation.com/ageing-in-a-housing-crisis-growing-numbers-of-older-australians-are-facing-a-bleak-future-209237">beyond reach</a>. This choice may then be impeded by a lack of suitable accommodation in their current or desired neighbourhoods.</p> <p>Our recently published <a href="https://doi.org/10.1177/01640275231209683">study</a> asks what motivates older homeowners and renters to age in place or relocate, and what factors disrupt these preferences. It suggests older renters are often not given a fair choice.</p> <h2>Most older Australians want to age in place</h2> <p>Having the option to age in place enables older people to retain autonomy over their lifestyles and identity, promoting emotional wellbeing.</p> <p>Using 20 years of data from the government-funded Household, Income and Labour Dynamics in Australia (HILDA) survey, we tracked the preferences of Australians aged 55 and over.</p> <p>Encouragingly, most older Australians are already where they want to be.</p> <p>Two-thirds (67%) of respondents strongly preferred to stay in their current neighbourhood, and an additional one-fifth (19%) had a moderate preference to stay.</p> <p>Only 6% showed a moderate or strong desire to leave. Ageing in place is then the natural choice for a vast majority of older Australians.</p> <p><iframe id="s3LTM" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/s3LTM/1/" width="100%" height="400px" frameborder="0"></iframe></p> <p>Our study highlights several motivations for people to stay put as they retire.</p> <p>For homeowners, family ties matter. Owners with children residing nearby were around one and a half times more likely to have a higher preference to stay.</p> <p>Older owners might then have a reason to call on their substantial <a href="https://theconversation.com/the-housing-wealth-gap-between-older-and-younger-australians-has-widened-alarmingly-in-the-past-30-years-heres-why-197027">housing wealth</a> and keep their children nearby via the <a href="https://360info.org/how-to-help-the-young-buy-a-home/">“bank of mum and dad”</a>.</p> <p>For renters, how long they stay is important. Those renting their home for 10 years or more were 1.7 times more likely to have a higher preference to stay than short-term renters.</p> <h2>Renters face the most disruption</h2> <p>The survey enabled us to follow where older people lived a year after they provided their preferences. This helped us gauge how often they turned their desires into reality.</p> <p>The chart below indicates that private renters face greater obstacles to ageing in place.</p> <p>Around one in 10 private renters that desired to age in place were disrupted – they wanted to stay in their neighbourhood but didn’t. This suggests they moved out of their neighbourhood involuntarily.</p> <p>Only 2% of homeowners and social renters experienced the same disruption. However, for those in these tenures that did not desire to age in place, involuntary immobility was a greater concern. Only 15% of those that wanted to leave succeeded, leaving the vast majority “stuck in place”.</p> <p><iframe id="IlliV" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/IlliV/1/" width="100%" height="400px" frameborder="0"></iframe></p> <p>The private rental market is the least secure of tenures, and so private tenants are often exposed to involuntary moves. Australia’s private rental system is lightly regulated compared to many other countries, creating tenure insecurity concerns.</p> <p>On the other hand, social renters were particularly susceptible to involuntary immobility. Social housing is scarce in Australia and subject to <a href="https://theconversation.com/its-soul-destroying-how-people-on-a-housing-wait-list-of-175-000-describe-their-years-of-waiting-210705">lengthy waiting lists</a>. A neighbourhood move often requires transferring to the less affordable and less secure private rental housing.</p> <p>Even after considering financial status, social renters were four times as likely to be stuck as compared to private renters. Social tenants are strongly deterred from moving in the current system.</p> <h2>How can we support older Australians’ preferences?</h2> <p>Our study exposes some barriers in the housing system that hinder people from being able to age in place, or move when they want to. Clearly, older renters enjoy fewer protections against disruptions to their preferences to age in place than older owners.</p> <p>For private renters, tenure insecurity in the <a href="https://theconversation.com/insecure-renting-ages-you-faster-than-owning-a-home-unemployment-or-obesity-better-housing-policy-can-change-this-216364">private rental sector</a> is a key reform priority. This can be achieved through stronger regulation that improves tenants’ rights. For example, more states could adopt <a href="https://theconversation.com/how-5-key-tenancy-reforms-are-affecting-renters-and-landlords-around-australia-187779?utm_source=twitter&amp;utm_medium=bylinetwitterbutton">recent regulatory rental reforms</a> that support the rights of pet owners and protect against no-grounds evictions.</p> <p>Large numbers of older private renters also face severe <a href="https://www.oldertenants.org.au/publications/ageing-in-a-housing-crisis-older-peoples-housing-insecurity-homelessness-in-australia">rental stress</a>, which may force them to move from their preferred neighbourhood. <a href="https://theconversation.com/1-billion-per-year-or-less-could-halve-rental-housing-stress-146397">Commonwealth rent assistance reform</a> would alleviate some of this stress through an increase in rates and better targeting.</p> <p>An increase in the supply of social housing would play an important role in improving both tenure security and housing affordability. Older social renters enjoy fewer obstacles to ageing in place than older private renters.</p> <p>However, if social renters want to move into the private rental market to relocate, they face difficulty securing accommodation. This will likely discourage moves as it would require sacrificing the tenure security offered by social housing. However, policy initiatives that improve the <a href="https://www.ahuri.edu.au/sites/default/files/migration/documents/PES-358-Lessons-from-public-housing-urban-renewal-evaluation.pdf">quality of the public housing stock</a> can reduce feelings of being stuck.</p> <p>As <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">homeownership rates decline</a> both among young people and those nearing retirement, we can expect the population of older renters to grow.</p> <p>Overall, our findings support a strong case for policy reform in the rental sectors to address the needs and preferences of older renters.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/218024/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/christopher-phelps-378137"><em>Christopher Phelps</em></a><em>, Research Fellow, School of Accounting, Economics and Finance, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>; <a href="https://theconversation.com/profiles/rachel-ong-viforj-113482">Rachel Ong ViforJ</a>, ARC Future Fellow &amp; Professor of Economics, <a href="https://theconversation.com/institutions/curtin-university-873">Curtin University</a>, and <a href="https://theconversation.com/profiles/william-clark-1488932">William Clark</a>, Research Professor of Geography, <a href="https://theconversation.com/institutions/university-of-california-los-angeles-1301">University of California, Los Angeles</a></em></p> <p><em>Image credits: Shutterstock</em></p> <p><em>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/stay-or-go-most-older-australians-want-to-retire-where-they-are-but-renters-dont-always-get-a-choice-218024">original article</a>.</em></p>

Retirement Income

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Monty Python star's candid financial admission

<p>Monty Python star Eric Idle has made a candid admission about the state of his finances, revealing why he still has to work at the age of 80. </p> <p>The comic legend admitted he receives only a fraction of the millions the Python team have made in the past because the finances are a “disaster”.</p> <p>In messages on X, formerly Twitter, Idle wrote: “I don’t know why people always assume we’re loaded”.</p> <p>“I have to work for my living. I never dreamed that at this age the income streams would tail off so disastrously."</p> <p>“I have been working and earning for Pythons since 1995. And now no more.”</p> <p>Idle also took aim at TV lawyer Holly Gilliam, the daughter of fellow Python member Terry Gilliam, who took over the Python brand in 2013 as part of HDG Projects Ltd. </p> <p>He said, “I guess if you put a Gilliam child in as your manager you should not be so surprised”.</p> <p>“One Gilliam is bad enough. Two can take out any company.”</p> <p>Daughter Lily Idle backed him, writing online, “I’m so proud of my dad for finally finally finally starting to share the truth.”</p> <p>The Pythons, who also included John Cleese, 84, Michael Palin, 80, and the late Terry Jones — made a fortune thanks to their iconic cult films, including <em>Life of Brian</em>, hit stage show <em>Spamalot</em>, which Idle co-wrote, and the original <em>Flying Circus</em> BBC TV series.</p> <p>They were back in the limelight in 2014 with <em>Monty Python Live (Mostly) — One Down, Five to Go</em>: a reference to former member Graham Chapman who died in 1989 aged just 48.</p> <p>It featured interpretations of some of their famous sketches, and reportedly earned the surviving members at least £2 million ($3.87m AUD) each.</p> <p><em>Image credits: Getty Images </em></p>

Retirement Income

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After a lifetime studying superannuation, here are 5 things I wish I knew earlier

<p><em><a href="https://theconversation.com/profiles/susan-thorp-214">Susan Thorp</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a></em></p> <p>Amassing the wealth needed to support retirement by regular saving is a monumental test of personal planning and discipline. Fortunately for most Australian workers, the superannuation system can help.</p> <p>Superannuation uses the carrot of tax incentives, and the sticks of compulsion and limited access, to make us save for retirement.</p> <p>There are benefits to paying timely attention to your super early in your working life to get the most from this publicly mandated form of financial self-discipline.</p> <p>I’ve been researching and thinking about superannuation for most of my career. Here’s what I wish I knew at the beginning of my working life.</p> <h2>1. Check you’re actually getting paid super</h2> <p>First, make sure you are getting your dues.</p> <p>If you are working, your employer must contribute <a href="https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay">11% of your earnings</a> into your superannuation account. By July 2025 the rate will increase to 12%.</p> <p>This mandatory payment (the “<a href="https://www.ato.gov.au/tax-rates-and-codes/key-superannuation-rates-and-thresholds/super-guarantee">superannuation guarantee</a>”) may look like yet another tax but it is an important part of your earnings (would you take an 11% pay cut?).</p> <p>It is worth checking on, and worth <a href="https://www.ato.gov.au/calculators-and-tools/super-report-unpaid-super-contributions-from-my-employer">reporting</a> if it is not being paid.</p> <p>The Australian Tax Office <a href="https://oia.pmc.gov.au/sites/default/files/posts/2023/05/Impact%20Analysis%20-%20Unpaid%20Superannuation%20Guarantee%20package.pdf">estimates</a> there is a gap between the superannuation employers should pay and what they do pay of around 5% (or $A3.3 billion) every year.</p> <p>Failing to pay is <a href="https://oia.pmc.gov.au/sites/default/files/posts/2023/05/Impact%20Analysis%20-%20Unpaid%20Superannuation%20Guarantee%20package.pdf">more common</a> among the accommodation, food service and construction industries, as well as small businesses.</p> <p>Don’t take your payslip at face value; cross-check your super account balance and the annual statement from your fund.</p> <h2>2. Have just one super account</h2> <p>Don’t make personal donations to the finance sector by having more than one superannuation account.</p> <p>Two super accounts mean you are donating unnecessary administration fees, possibly redundant insurance premiums and suffering two times the confusion to manage your accounts.</p> <p>The superannuation sector does not need your charity. If you have more than one super account, please consolidate them into just one today. You can do that <a href="https://moneysmart.gov.au/how-super-works/consolidating-super-funds">relatively easily</a>.</p> <h2>3. Be patient, and appreciate the power of compound interest</h2> <p>If you’re young now, retirement may feel a very distant problem not worth worrying about until later. But in a few decades you’re probably going to appreciate the way superannuation works.</p> <p>As a person closing in on retirement, I admit I had no idea in my 20s how much my future, and the futures of those close to me, would depend on my superannuation savings.</p> <p>Now I get it! <a href="https://www.nber.org/papers/w27459">Research</a> <a href="https://economics.mit.edu/sites/default/files/publications/pandp.20221022.pdf">shows</a> the strict rules preventing us from withdrawing superannuation earlier are definitely costly to some people in preventing them from spending on things they really need. For many, however, it stops them spending on things that, in retrospect, they would rate as less important.</p> <p>But each dollar we contribute in our 30s is worth around three times the dollars we contribute in our 50s. This is because of the advantages of time and <a href="https://moneysmart.gov.au/saving/compound-interest">compound interest</a> (which is where you earn interest not just on the money initially invested, but on the interest as well; it’s where you earn “interest on your interest”).</p> <p>For some, adding extra “voluntary” savings can build up retirement savings as a buffer against the periods of unemployment, disability or carer’s leave that most of us experience at some stage.</p> <h2>4. Count your blessings</h2> <p>If you are building superannuation savings, try to remember you’re among the lucky ones.</p> <p>The benefits of super aren’t available to those who can’t work much (or at all). They face a more precarious reliance on public safety nets, like the Age Pension.</p> <p>So aim to maintain your earning capacity, and pay particular attention to staying employable if you take breaks from work.</p> <p>What’s more, superannuation savings are invested by (usually) skilled professionals at rates of return hard for individual investors to achieve outside the system.</p> <p>Many larger superannuation funds offer members types of investments – such as infrastructure projects and commodities – that retail investors can’t access.</p> <p>The Australian Prudential Regulation Authority (APRA) also <a href="https://www.apra.gov.au/industries/superannuation">checks</a> on large funds’ investment strategies and performance.</p> <h2>5. Tough decisions lie ahead</h2> <p>The really hard work is ahead of you. The saving or “accumulation” phase of superannuation is mainly automatic for most workers. Even a series of non-decisions (defaults) will usually achieve a satisfactory outcome. A little intelligent activity will do even better.</p> <p>However, at retirement we face the challenge of making that accumulated wealth cover our needs and wants over an uncertain number of remaining years. We also face variable returns on investments, a likely need for aged care and, in many cases, declining cognitive capacity.</p> <p>It’s helpful to frame your early thinking about superannuation as a means to support these critical decades of consumption in later life.</p> <p>At any age, when we review our financial management and think about what we wish we had known in the past, we should be realistic. Careful and conscientious people still make mistakes, procrastinate and suffer from bad luck. So if your super isn’t where you had hoped it would be by now, don’t beat yourself up about it. <!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/217922/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/susan-thorp-214">Susan Thorp</a>, Professor of Finance, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/after-a-lifetime-studying-superannuation-here-are-5-things-i-wish-i-knew-earlier-217922">original article</a>.</em></p>

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It’s not just about accumulating super. Australians need to learn how to spend their retirement savings

<p><em><a href="https://theconversation.com/profiles/marc-olynyk-1493791">Marc Olynyk</a>, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a></em></p> <p>Australia’s superannuation and retirement income system is complex and difficult to navigate.</p> <p>Retirees need to make decisions on numerous issues where they have less than full information and understanding, both financial and non-financial. They also require access to retirement products to help them manage and balance income needs against longevity risk.</p> <p>Recognising these issues, the government released a <a href="https://treasury.gov.au/consultation/c2023-441613">discussion paper</a> this month seeking views on three key issues:</p> <ol> <li> <p>helping super fund members navigate the retirement income system</p> </li> <li> <p>supporting superannuation funds to deliver better services</p> </li> <li> <p>making retirement income products more accessible.</p> </li> </ol> <p>Australia has one of the largest and most sophisticated pension systems in the world. Valued at more than <a href="https://www.apra.gov.au/quarterly-superannuation-statistics">A$3.5 trillion</a> as at September 2023, and is the <a href="https://www.thinkingaheadinstitute.org/research-papers/global-pension-assets-study-2023/">5th largest pension scheme</a> in terms of asset size.</p> <p>It is also the <a href="https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index/">5th most highly rated retirement income system</a> internationally behind the Netherlands, Iceland, Denmark and Israel.</p> <h2>What is wrong with the super system?</h2> <p>But while the super system ranks highly in terms of integrity and sustainability, the numbers are not as flattering when it comes to “adequacy”.</p> <p>Adequacy is the level of income available to retirees depending on their different circumstances. According to a recent <a href="https://www.mercer.com/insights/investments/market-outlook-and-trends/mercer-cfa-global-pension-index/">study</a>, Australia is ranked 20th out of 47 worldwide on the adequacy index.</p> <p><a href="https://www.investmentmagazine.com.au/2023/02/purpose-of-super-law-to-herald-tax-reform/">Reform</a> in the <em>pre-retirement</em> phase of Australia’s retirement income scheme is ongoing and designed to support accumulating wealth for retirement.</p> <p>These ongoing reforms have been designed to make superannuation easier to understand and to reduce much of the decision making required. They’ve been needed because of an apparent lack of skills, interest and financial literacy among Australians.</p> <p>While the message that we need to save to be comfortable in retirement is getting through, the lack of information about how to manage these savings once we retire means many retirees are left to navigate the complex system as best they can.</p> <p>Given the complexity and volatility of Australia’s financial system, it’s hardly surprising many of the decisions made by retirees don’t produce the best financial results. For example, more than <a href="https://treasury.gov.au/consultation/c2023-441613">84%</a> of retirement savings are held in account-based pensions which, if not properly managed, can run out. This is despite government and community awareness that outliving your savings is a real possibility.</p> <p>About 50% of retirees currently withdraw at the minimum pension rate, which means many people experience a lower standard of living than what would normally be expected with the super they have accumulated. This can result in wealth not being used and instead being passed on to the next generation.</p> <h2>Help is needed now because the retiree sector is booming</h2> <p>Over the next decade there is going to be a big increase in the number of people retiring and transitioning from the accumulation phase of their super to the pension phase. It’s estimated <a href="https://treasury.gov.au/consultation/c2023-441613">2.5 million</a> Australians will move to the retirement phase in this period.</p> <p>Following the 2014 <a href="https://treasury.gov.au/publication/c2014-fsi-final-report">Financial System Inquiry</a>, the government introduced the <a href="http://www5.austlii.edu.au/au/legis/cth/consol_act/sia1993473/s52.html">Retirement Income Covenant</a> in 2022 to force super fund trustees to develop a strategy that would provide better retirement outcomes for their members.</p> <p>The strategy is based on retirees maximising their expected retirement income, managing expected risks to their retirement income and having flexible access to super funds during their retirement.</p> <p>A 2022-23 review conducted by <a href="https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-766-implementation-of-the-retirement-income-covenant-findings-from-the-apra-and-asic-thematic-review/">Australian Prudential Regulation Authority and the Australian Securities and Investments Commission</a> found while trustees were providing more help to retirees, overall there was a lack of progress and urgency among trustees to improve retirement outcomes.</p> <h2>How the system could be improved</h2> <p>Several proposals have been put forward to improve the experiences and decision-making of retirees. These have included:</p> <ul> <li> <p>improved support from and education by superannuation fund trustees</p> </li> <li> <p>changing how people view their super savings from an accumulation of wealth to a system that enables drawdown of retirement savings over time to fund expenses.</p> </li> <li> <p>providing an automatic rollover of retirement savings into an income-stream instead of allowing a lump sum withdrawal on retirement</p> </li> <li> <p>expanding existing income products (that are starting to be offered by several financial institutions) which combine providing investment choice with a pension for life</p> </li> <li> <p>setting up a MyRetire product that would run parallel to <a href="https://treasury.gov.au/programs-and-initiatives-superannuation/mysuper">MySuper</a> and provide a simple and cost-effective retirement income system for less engaged members. MySuper only applies to the accumulation phase. Once a member starts an income stream in retirement, their MySuper account ceases</p> </li> <li> <p>improving access to financial planning advice which is shown to play a significant role in preparing Australians for retirement.</p> </li> </ul> <p>The government, superannuation industry and the community all have a greater role to play in improving the financial outcomes and experiences of retirees.</p> <p>With Australia’s ageing population, the need to better support retirees to achieve a dignified retirement is becoming more urgent.</p> <p>All Australians expect and deserve a financially secure retirement.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/219217/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/marc-olynyk-1493791"><em>Marc Olynyk</em></a><em>, Director of Financial Planning, Deakin Business School, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/its-not-just-about-accumulating-super-australians-need-to-learn-how-to-spend-their-retirement-savings-219217">original article</a>.</em></p>

Retirement Income

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Downsizing cost trap awaits retirees – five reasons to be wary

<p><em><a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a></em></p> <p>It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing.</p> <p>Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations.</p> <p>It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face.</p> <p>The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees.</p> <h2>Reason 1 – upfront moving costs are high</h2> <p>When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty.</p> <p>For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000.</p> <p>These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>.</p> <h2>Reason 2 – levies are high</h2> <p>Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not.</p> <p>Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments.</p> <p>The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs.</p> <p>When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&amp;eprintid=23322">must be paid</a>.</p> <p>Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them.</p> <p>Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>.</p> <h2>Reason 3 – costs of maintenance</h2> <figure class="align-right "><figcaption></figcaption></figure> <p>Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for.</p> <p>Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above.</p> <h2>Reason 4 – loss of financial security</h2> <p>It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners.</p> <p>Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement.</p> <p>Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&amp;eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs.</p> <p>Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again.</p> <p>Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs.</p> <p>Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions.</p> <h2>Reason 5 – loss of security of tenure</h2> <p>Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell.</p> <p>There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life.</p> <p>Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age.</p> <h2>Downsizing raises poverty risks</h2> <p>Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked.</p> <p>Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs.</p> <p>Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs.</p> <p>Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home.</p> <p>Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/80895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/erika-altmann-361218"><em>Erika Altmann</em></a><em>, Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/downsizing-cost-trap-awaits-retirees-five-reasons-to-be-wary-80895">original article</a>.</em></p>

Retirement Income

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Women and low-income earners miss out in a superannuation system most Australians think is unfair

<p><em><a href="https://theconversation.com/profiles/antonia-settle-1019551">Antonia Settle</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p>Most Australians think the superannuation system is unfair, with only one in three agreeing the retirement savings scheme is fair for most Australians, according to a survey conducted for the University of Melbourne.</p> <p>In fact, only about half of those <a href="https://melbourneinstitute.unimelb.edu.au/publications/research-insights/search/result?paper=4630688">surveyed</a> agreed superannuation works well for them.</p> <p>These results contradict a conventional view based on earlier studies and held by academics and many in the personal finance sector, that Australians give little thought to superannuation.</p> <p>A 2013 survey found Australians have <a href="https://search.informit.org/doi/abs/10.3316/INFORMIT.285049750322819">poor knowledge</a> of how the superannuation system works, while another study in 2022 highlighted <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0011/4382057/HILDA_Statistical_Report_2022.pdf">low financial literacy</a> in general.</p> <p>Australians also showed <a href="https://behaviouraleconomics.pmc.gov.au/sites/default/files/projects/retirement-planning-saving-attitudes_0_0.pdf">little interest in superannuation</a>, according to a 2020 Department of Prime Minister and Cabinet survey, with few Australians showing interest in reading their superannuation statements, choosing their fund or making voluntary contributions.</p> <p>With Australian households seen as uninformed and uninterested, their opinions tend to be left out of the public debate. We hear much about the gender pension gap, for example, but little about what women actually think about superannuation.</p> <p>Similarly, the distribution of tax advantage in superannuation is hotly debated by economists but survey data tends to refrain from asking households what they think about equity in the superannuation system.</p> <p>The University of Melbourne survey of 1,003 Australians was undertaken by Roy Morgan Research in April.</p> <p>Its results show women and low-income households are widely seen as disadvantaged in the superannuation system.</p> <p>In fact, only one in five Australians see the superannuation system as well suited to the needs of women and of low-income households, while 70% believe super favours wealthy households.</p> <p><iframe id="5VX3K" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/5VX3K/1/" width="100%" height="400px" frameborder="0"></iframe></p> <p>This suggests although Australians may show little interest in the management of their super accounts and may report they find the system confusing or even <a href="https://www.professionalplanner.com.au/wp-content/uploads/2016/05/Attitudes-to-Super-Report-May-2016.pdf">boring</a>, they are surprisingly aware of how superannuation is distributed.</p> <h2>Women, singles and low-income earners miss out</h2> <p>The federal government’s 2020 <a href="https://treasury.gov.au/publication/p2020-100554">Retirement Income Review</a> documents these gaps. Renters, women, uncoupled households and those on low-incomes fare poorly in the retirement income system.</p> <p>With little super to supplement the public pension, these groups are vastly over-represented in elderly poverty statistics, which are among the <a href="https://www.oecd-ilibrary.org/sites/d76e4fad-en/index.html?itemId=/content/component/d76e4fad-en">highest in the OECD</a>.</p> <p>Mirroring the gaps in the superannuation system reported by the review, the University of Melbourne survey shows that it is outright homeowners and those who are married who believe the superannuation system works well.</p> <p>Concerns the system works poorly for women and low-income households are strongest among women and low-income households. Only one in three renters believe the superannuation system meets their needs.</p> <p><iframe id="N9GO6" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/N9GO6/1/" width="100%" height="400px" frameborder="0"></iframe></p> <p>This suggests individuals’ concerns about fairness in the superannuation system are driven by their own experiences of disadvantage, regardless of financial literacy.</p> <p>This is consistent with my own <a href="https://www.tandfonline.com/doi/full/10.1080/13563467.2023.2195159">research</a> into household attitudes to superannuation, which showed some resentment among women who were well aware their male partners had substantially higher superannuation balances than them.</p> <p>This all matters for policymakers.</p> <h2>Why public perceptions are important</h2> <p>In the short term, these results suggest public support for making super fairer is likely to be stronger than previously thought. Recent government changes to tax concessions on large balances, for example, could have gone much further without losing support from the 70% of households that think the system favours the wealthy.</p> <p>But it matters for the longer term too.</p> <p>Public perceptions of fairness, effectiveness and efficiency are crucial to policy sustainability. This is well established in the academic literature from <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/spol.12683">B Ebbinghaus</a>, 2021 and <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/1911-3838.12171">H Chung et al.</a>, and accepted by the Retirement Income Review.</p> <p>The review assessed the public’s confidence in the system to both “deliver an adequate retirement income for them(selves) and (to) generate adequate outcomes across society”.</p> <p>As the review makes clear, the system must avoid a loss of public confidence from perceptions of unfairness.</p> <p>Yet perceptions of unfairness are exactly what the University of Melbourne results suggest. This would have been clearer to policymakers if they asked earlier.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/207633/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/antonia-settle-1019551">Antonia Settle</a>, Academic (McKenzie Postdoctoral Research Fellow), <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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-and-low-income-earners-miss-out-in-a-superannuation-system-most-australians-think-is-unfair-207633">original article</a>.</em></p>

Retirement Income

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Santas needed! Surprising Christmas shortage spells job openings for Aussie grandads

<p>A nationwide Santa shortage has many shopping centres hoping for a Christmas miracle, before festive families line up in droves for a snap with Father Christmas. </p> <p>According to talent agency <a href="https://scenetobelieve.com.au/santa-jobs/" target="_blank" rel="noopener">Scene to Believe</a>, who are responsible for hiring Santas in over 180 around Australia, there are not have enough applicants for Santa roles this December. </p> <p>The agency's head Christmas recruiter, Viviana Diaz, told <a href="https://www.news.com.au/finance/work/careers/santa-jobs-go-unfilled-despite-fall-in-aussie-job-ads/news-story/de7f3c5b6d95c6f78f9718d1bb60a099" target="_blank" rel="noopener"><em>news.com.au</em></a> that the seasonal shortfall was nationwide, but the situation was more pronounced in Sydney.</p> <p>The company said issue has been growing over the last three years, with the problem believed to have stemmed from the Covid pandemic. </p> <p>Ms Diaz said that contrary to popular belief, Santas can come in all shapes, sizes and ages, and that women are also eligible to apply. </p> <p>“Sometimes they think they have to look like Santa,” Ms Diaz said.</p> <p>“But we provide a full Santa suit and they don’t have to have a real beard.”</p> <p>Previous experience is also not required, as Scene to Believe runs a dedicated Santa School where new incoming Santas can learn tips from experienced Santas.</p> <p>The company states that Santas “need to be jolly, have a great HOHOHO and enjoy working with children”, while a genuine love of the festive season, patience and compassion, and good communication skills.</p> <p> A current Working with Children Check and Police Check, or willingness to get these, are also important.</p> <p>Ms Diaz added, “Being a shopping centre Santa is a perfect job for Aussies looking to help their hip pocket come Christmas time, with flexible working arrangements and casual rates.”</p> <p>Experienced Santa Tony Hooper said it’s “perfect for older Australians wanting to dip their toe back into the workforce”. </p> <p>“Being a Santa is by far the best work I’ve ever done. It’s flexible, I work when I want and I spend my days talking to young families and getting in the festive spirit.”</p> <p>“It’s also a great way to earn extra cash right before Christmas, which is when I need it most. And the best part is, I can still receive my pension!” </p> <p>Ms Diaz said failing to fill its Santa positions was not an option, and they would do everything in their power to have a flock of Santas ready to spread Christmas cheer on December 1st.</p> <p>“We have to find a lot of people because Santa has to be there. We will perform a Christmas miracle!”</p> <div> </div> <p><em>Image credits: Getty Images</em></p>

Retirement Income

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7 hacks for retirees to make your money last longer

<p>As Australians continue to live longer, the squeeze is on to make each dollar last longer – and never moreso than in retirement.</p> <p><a href="https://www.aihw.gov.au/reports/life-expectancy-deaths/deaths-in-australia/contents/life-expectancy">Life expectancies in Australia</a> are now 85.4 years for women and 81.3 years for men. Meanwhile, the <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release">average age at retirement</a> for all retirees is 56.3 years. That’s up to 29.1 years of retirement to be paid for without a salaried income.</p> <p>Thankfully, making money last longer is just possible, with the help of a few tips and tricks.</p> <ol> <li><strong>Embrace seniors’ discounts</strong></li> </ol> <p>It was once said that “it’s better to pay full price than to admit you’re a senior citizen”. Really? Who wouldn’t prefer the extra cash!</p> <p>Being “senior” opens the door to numerous discounts and freebies.</p> <p>If you haven’t already, apply for your eligible concession cards, including the <a href="https://www.servicesaustralia.gov.au/commonwealth-seniors-health-card">Commonwealth Seniors Health Card</a> (for discounted healthcare and prescriptions) and state or territory seniors card (for discounted/free vehicle registration, public transport and other services).</p> <p>Additionally, many businesses offer seniors discounts – insurers, retailers, attractions and more. But they may not advertise these discounts widely, so it pays to ask.</p> <ol start="2"> <li><strong>Maintain a plan</strong></li> </ol> <p>Having a plan and keeping it up to date ensures you don’t overdraw from super, losing the income-generating power of those funds and running out prematurely.</p> <p>I prefer a ‘savings and investment plan’, which sounds nicer and is more comprehensive than a ‘budget’.</p> <p>Incorporate your goals, expenses, assets, and incomes – visibility keeps you disciplined and allows you to act quickly if something is amiss.</p> <ol start="3"> <li><strong>Spend points</strong></li> </ol> <p>Many retirees have held their current credit card, store cards and frequent flyer account for years – decades even. How many points are sitting there unused? </p> <p>These points generally aren’t transferable, so can’t be gifted in your will. It’s use them or lose them! </p> <p>Points can pay for everything from groceries to homewares, travel and even your Christmas shopping – conserving your cash and super.</p> <ol start="4"> <li><strong>Get comfortable</strong></li> </ol> <p>Rightsizing your home sooner rather than later has numerous benefits, such as:</p> <ul> <li><a href="https://www.ato.gov.au/Individuals/Super/Growing-and-keeping-track-of-your-super/How-to-save-more-in-your-super/Downsizer-super-contributions/">downsizer super contributions tax breaks</a> to boost superannuation earnings.</li> <li>paying less for your new home, since property prices generally track upwards whilst investing the extra equity.</li> <li>avoiding complications of moving later in life when your health or mobility may not be as good.</li> <li>avoiding a mistake - using the time to find exactly what you want, where you want, rather than being under pressure and having to spend stamp duty again</li> </ul> <p>Home ownership is also a major determinant of how comfortable your retirement will be. And given the current state of Australia’s rental market, selling your home to move into rented accommodation could prove costly. </p> <ol start="5"> <li><strong>Retain protections</strong></li> </ol> <p>Protections are typically a cost – insurance premiums, legal fees, memberships etc. However, the cost of not having them in place can be far higher.</p> <p>Plus, in the case of insurances, prices and restrictions increase with age – meaning you pay more but get less value for that spend, compared with the more favourable terms of a long-held policy.</p> <p>By all means adjust your protections to suit your current and future needs. But think twice before trying to save a few dollars by discarding insurances or cancelling sports and social memberships that keep you active.</p> <ol start="6"> <li><strong>Update estate planning</strong></li> </ol> <p>Considerable costs (and heartache) inevitably hit a grieving partner and family where someone dies without having their affairs properly in order:</p> <ul> <li>funeral costs and medical bills pile up if funds haven’t been allocated for them.</li> <li>delayed payouts from insurances and super if those details aren’t readily available. </li> <li>loss of economies of scale (living costs per person are cheaper for couples than singles). </li> <li>unexpected taxes, debts, and liabilities.</li> <li>legal conflicts arise where wills are unclear or outdated.</li> <li>a person’s wishes may go overlooked or be challenged where guardianships and power of attorney were not devised.</li> </ul> <p>In extreme cases, the surviving spouse may be forced to sell their home to pay associated costs or because they can’t afford to maintain it alone. </p> <ol start="7"> <li><strong>Seek good advice</strong></li> </ol> <p>Just like a good doctor helps you stay physically and mentally healthy, a good financial adviser helps your finances stay healthy, tactically smart and use strategies to reduce tax which stretches your money further.</p> <p>Be sure their accreditation is up-to-date, and they have experience working with retirees (not just those planning for it during their working years).</p> <p>Often, the cost of this advice pales in comparison to the tax saved and additional income earned through benefits, structures and plans you never even knew about. What’s not to love about that!</p> <p><strong><em>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). 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> </em></strong></p> <p><em>Image credits: Getty Images</em></p>

Retirement Income

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7 simple wealth creation ideas for over 60s

<p>In today's world of rising costs and economic uncertainties, building wealth after the age of 60 might seem like a daunting task. However, it's essential to remember that it's never too late to take control of your financial future and explore innovative ways to boost your income and savings.</p> <p>The latest Retirement Standard from the super industry body ASFA reveals that singles aged 65-84 need an annual income of approximately $50,207 for a 'comfortable lifestyle' in retirement, while couples require a combined income of $70,806 per year. With the full age pension often falling short of these numbers, many seniors are seeking alternative ways to supplement their income during retirement.</p> <p>Let’s delve into some practical and achievable wealth creation ideas tailored to older Australians who are looking to secure their financial well-being in their golden years.</p> <ol> <li><strong>Intentional Spending</strong></li> </ol> <p>Cutting down on non-essential spending is a powerful way to save money. Review your discretionary expenses and identify areas where you can make reductions. For instance, consider cooking at home instead of dining out, exploring free or low-cost local activities for entertainment, and delaying the purchase of luxury items. Prioritise experiences that provide value without straining your budget.</p> <ol start="2"> <li><strong>Pressure Test Your Retirement Strategy</strong></li> </ol> <p>It's essential to regularly review your retirement plan, taking into account the evolving financial landscape, legislative changes, and opportunities to minimise costs. By doing so, you can maximise the funds under your control and make informed decisions that align with your retirement goals. Keep in mind that the financial world is dynamic, and staying proactive in managing your retirement assets can lead to a more secure and comfortable retirement.</p> <ol start="3"> <li><strong>Get rid of things you don't need by selling online</strong></li> </ol> <p>Embrace the digital age and leverage online marketplaces to turn your unneeded possessions into cash. If you're not tech-savvy, don't hesitate to enlist the help of your grandchildren or any trusted youngster who can guide you through the process. Selling items online not only declutters your living space but also opens up opportunities to supplement your retirement income. Embracing technology can be empowering and profitable at any age!</p> <ol start="4"> <li><strong>Part-Time Job Opportunities in the Gig Economy</strong></li> </ol> <p>Embrace the gig economy by exploring part-time job opportunities. Various platforms offer flexible work arrangements suitable for seniors, such as rideshare driving or food delivery services. These roles allow you to set your own hours and supplement your retirement income.</p> <ol start="5"> <li><strong>Freelancing or Consulting</strong></li> </ol> <p>Your years of experience and expertise are valuable assets. Consider venturing into part-time freelancing or consulting opportunities within your field. Many businesses are eager to hire experienced professionals for specific projects or advisory roles, providing an opportunity to boost your income without a full-time commitment.</p> <ol start="6"> <li><strong>Renting Out a Spare Room</strong></li> </ol> <p>If you have extra space in your home, consider renting out a spare room to short-term guests. Websites like Airbnb make it easy to find renters, providing a consistent source of income and helping to cover housing costs.</p> <ol start="7"> <li><strong>Compare and Save</strong></li> </ol> <p>Once you've reviewed your spending habits, identify areas where you can potentially save money by shopping around and obtaining comparison quotes. Renegotiating bills and subscriptions can also yield significant savings. Don't forget to review your insurance policies, adjusting the coverage and excess to potentially reduce premiums.</p> <p>Creating wealth in your golden years may seem challenging, but with the right approach and determination, it's entirely achievable. By exploring these simple and practical ideas, older Australians can take steps toward securing their financial future and enjoying a comfortable retirement. Remember that every financial decision should align with your individual circumstances and objectives. </p> <p>However, it's crucial to note that earning extra income during retirement can impact age pension payments. It can be worth seeking financial advice about the best way to increase income during retirement without compromising any other entitlements, so consider seeking professional guidance to make informed choices on your path to financial security, ensuring a comfortable and worry-free retirement.</p> <p><em><strong>Amanda Thompson, author of Financially Fit Women, is a sought-after speaker and qualified financial adviser.  As the founder of Endurance Financial, Amanda is driven to renew personal and confidence by providing the financial knowledge and guidance to have a great relationship with money allowing you to become your own CFO (Confident, Focussed &amp; On top of your Finances). For more information visit <a href="http://www.endurancefinancial.com.au">www.endurancefinancial.com.au</a></strong></em></p> <p><em>Image credits: Getty Images</em></p> <p><span style="color: #0b4cb4;"> </span></p>

Retirement Income

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Sickness or health: Healthy life split along gender, education lines

<p>Australians are living and working longer than ever, but the number of healthy years they’re enjoying with this added longevity isn’t shared equally between the sexes, or by those who finished school before Year 12.</p> <div class="copy"> <p>A paper recently <a href="https://doi.org/10.1016/S2468-2667(23)00129-9" target="_blank" rel="noreferrer noopener" data-type="URL" data-id="https://doi.org/10.1016/S2468-2667(23)00129-9">published</a> in <em>The Lancet</em> <em>Public Health</em> from the Ageing Futures Institute at the University of New South Wales shows an increase in longevity in Australia. Other data in the publication reveal detail about “healthy years”.</p> <p>Men, and those with higher levels of education, worked about 2 years longer in good health. For women and those with lower education, the years of healthy life expectancy have gone backwards.</p> <p>The report, led by statistician Dr Kim Kiely who is now based at The University of Wollongong, compared representative cohorts of people aged 50-100 who participated in the Household Income and Labour Dynamics in Australia survey (HILDA). Those cohorts were measured over decade long periods – the first from 2001-2010 and the second from 2011-2020.</p> <p>Men added an extra 11 months of healthy life between the cohorts, while women lost a month. Similarly those of any gender who had completed year 12 added about 10 months to their healthy life expectancy, while the same amount of time was lost by those who hadn’t.</p> <p>“Everyone’s increasing their working life expectancy, so the years they’re expected to be working,” Kiely says. “What is different is how long they’re expected to be living in good health: women and people with low education didn’t have an improvement in healthy life expectancy.</p> <p>“Everyone’s also living longer than ever before, but for women, those extra years seem to be years of poor health.  People with lower education – they end up going backwards, they’re losing years of healthy life.”</p> <p>Australia’s working life trends are similar to those in Europe and the UK, though this research suggests the Australian labour force works longer in poor health than their antipodean counterparts.</p> <p>Kiely says the findings are important considerations for policymakers pondering questions of retirement and pension ages: the demands of some labour may not be evenly spread when it comes to considering health implications.</p> <p>“We have a pension age that has been rising steadily over the past couple of decades – it’s not rising anymore – but there is a strong expectation for people to be working longer,” Kiely says. “And if that is the case, then we need opportunities for work for mature age, older adults, and those work opportunities have to be suitable for their capacity to work.</p> <p>“We do need to address things like age and gender discrimination in the workforce. And we need to think about how we support people who are unable to work before they reach the pension age.”</p> <p>Kiely is extending his research into how the nature of work in Australia influences these high-level findings. He hopes this can explain why gender and education influence healthy working years.</p> <p>Further drilling down into other subgroups is important, say Dr Marty Lynch and Dr Ross Wilkie from Keele University, UK. They investigated healthy working life expectancy as part of Britain’s Independent State Pension Age Review last year. They too found Briton were working longer, but not at a rate that keeps pace with the national pension age.</p> <p>In a <em>Lancet</em> editorial accompanying the Australian research, they point out that the HILDA data evaluation only shows changes in average ages on gender and education lines.</p> <p>“The extent of HWLE [Healthy Working Life Expectancy] inequalities between subpopulations with multiple specific characteristics are likely to be even wider and will also indicate targets and interventions to increase the number of years that people can be healthy and in work,” they say.</p> <p>The impact of socioeconomic status on life expectancy and disease burden was recently highlighted in a large-scale review of Australia’s 30-year health data.</p> <p><a href="https://cosmosmagazine.com/people/society/australias-life-expectancy-is-up-but-healthy-years-are-a-different-story/">It found</a> while Australians have added 6 years to their life expectancy since 1990, those with lower socioeconomic backgrounds had a higher risk of death-causing disease.</p> <p><em>Image credits: Getty Images</em></p> <p><em><a href="https://cosmosmagazine.com/people/society/sickness-or-health-healthy-life-split-along-gender-education-lines/">This article</a> was originally published on <a href="https://cosmosmagazine.com">Cosmos Magazine</a> and was written by <a href="null">Cosmos</a>. </em></p> </div>

Retirement Life

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Australians are living and working longer – but not necessarily healthier, new study show

<p><a href="https://theconversation.com/profiles/kim-kiely-1457635">K<em>im Kiely</em></a><em>, <a href="https://theconversation.com/institutions/university-of-wollongong-711">University of Wollongong</a> and <a href="https://theconversation.com/profiles/mitiku-hambisa-1457669">Mitiku Hambisa</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p>Australians are living and working longer, but a longer working life doesn’t always come with equivalent gains in healthy life.</p> <p><a href="https://www.thelancet.com/journals/lanpub/article/PIIS2468-2667(23)00129-9/fulltext">Our analysis</a> of change in life expectancy, health transitions and working patterns of more than 10,000 middle-aged Australians over the past two decades shows divergences in the number of years they can expect be in good health at work and in retirement.</p> <p>In particular, education matters.</p> <p>Those who left school before year 12 are losing years of healthy life, with their extra years in the workforce mainly comprising years of poor health. This is opposite to the trend among people who completed high school.</p> <p>And while men and women experienced improvements in life expectancy, on average women are not gaining extra healthy life years.</p> <p>Australians are being encouraged to extend their working life. For this to be sustainable and equitable, government and workplaces policies will need to make allowances for the health capacity of mature-age workers.</p> <h2>How we found our results</h2> <p>We’ve calculated <a href="https://www.thelancet.com/journals/lanpub/article/PIIS2468-2667(23)00129-9/fulltext">healthy working life expectancies</a> – the average number of years a person can expect to work in good health – for 50-year-olds using data from the Household, Income and Labour Dynamics in Australia (HILDA) survey. This is a longitudinal survey, meaning it seeks to interview the same households every year (about 17,000 people), enabling researchers to track life trajectories.</p> <p>We identified two age groups within HILDA’s survey sample and followed each cohort for 10 years. The first group was 4,951 people aged 50 years and older in 2001. The second group was 6,589 people aged 50 years and older in 2011.</p> <p>To estimate a healthy working life expectancy, we looked at how people transitioned in and out of good health and employment each year (based on survey data about their paid employment and long-term health conditions that limited participation in everyday activities).</p> <p>By combining this with deaths data, we have calculated the average duration spent (i) working in good health, (ii) working in poor health, (iii) retired in good health, and (iv) retired in poor health.</p> <h2>Differences by education</h2> <p>The following graphs show our results, based on expectancies at age 50.</p> <p>We show our data in this way, rather than total healthy life and working life expectancies from birth, because we followed people from age 50 and is this is the time from which workers start to plan for and transition into retirement.</p> <p>Typically we understand life expectancies to be calculated from birth, but they can be estimated for any age. If you live to 50, your life expectancy is greater than when you were born.</p> <p>Our first graph shows healthy life expectancies according to school completion. These estimates reflect the cumulative number of years a person will, on average, be healthy or unhealthy from age 50.</p> <p>Across the two cohorts, those with low education lose 0.8 years of healthy life, while those with high education gain 0.8 years of healthy life.</p> <p>As with all statistics, there is uncertainty in these estimates. (Our original analysis includes 95% confidence intervals but we do not show them here.)</p> <hr /> <p><iframe id="47SIf" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/47SIf/2/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>These inequities are amplified in working-life expectancies, as the next graph shows. Among early school leavers, at age 50 healthy work years rose from 7.9 to 8.4 years, an increase of six months. But their years working in poor health rose from 2.7 to 3.6 years, a difference of 11 months.</p> <p>In contrast, for those who completed year 12, at age 50 healthy work years rose from 9.6 to 10.5 years, an increase of 11 months. Their years working in poor health rose from 3.1 to 3.5 years, a difference of five months.</p> <hr /> <p><iframe id="kUCuy" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/kUCuy/4/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>The next graph illustrates what this means in proportional terms.</p> <hr /> <p><iframe id="4rBXz" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/4rBXz/1/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>The next graph shows working life expectancies by sex. Men, on average, will spend 25% of their remaining working years in poor health, and women 24%. These percentages have not changed over time.</p> <hr /> <p><iframe id="vQ4rK" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/vQ4rK/2/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>These findings are consistent with <a href="https://www.thelancet.com/journals/lanpub/article/PIIS2468-2667(22)00026-3/fulltext">previous analyses</a> demonstrating social inequalities in health expectancies to have been maintained over time, and possibly widened in some circumstances. In that study, women with low educational attainment appeared to have had negligible improvements in life expectancy and lost healthy life years.</p> <h2>Implications for governments and employers</h2> <p>Australia has this month raised the age at which people qualify for the <a href="https://theconversation.com/australias-retirement-age-just-became-67-so-why-are-the-french-so-upset-about-working-until-64-208648">age pension to 67</a>.</p> <p>When the pension was introduced in 1908, the qualifying age was 65 for men and 60 for women. At the time, average life expectancy for Australians at birth was about <a href="https://www.aihw.gov.au/reports/life-expectancy-deaths/how-long-can-australians-live/data">55 for men and 59 for women</a>. Now it exceeds 81 for men and 85 for women (though is considerably lower for some groups, notably Indigenous Australians).</p> <p>There’s an obvious rationale to prolong people’s working lives – to meet the challenges posed by population ageing and sustain the social security system. Nevertheless, consideration should be made for inequalities in life expectancy and health expectancy. For many ageing workers, health limitations constrain their capacity and opportunity to work.</p> <p>To achieve longer working lives, workplaces will be need become more supportive of mature-age workers, including accommodating long-term health conditions.</p> <p>This will likely involve addressing ageism in the workplace, increasing employer demand for older workers, creating appropriate work roles to fit the capacities and preferences of older workers, and providing pathways to lifelong education and training.</p> <p>We may also need to rethink our idea of flexible work, which has largely centred around the needs of parents and younger workers. Many older workers will have expectations for an independent and active retirement period, and it should be possible for flexible work arrangements to accommodate this.</p> <p>Finally, we should not discount the unpaid contributions made by many older adults through community service and providing care to loved ones.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/210542/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/kim-kiely-1457635">Kim Kiely</a>, Lecturer, Statistics and Data Science, <a href="https://theconversation.com/institutions/university-of-wollongong-711">University of Wollongong</a> and <a href="https://theconversation.com/profiles/mitiku-hambisa-1457669">Mitiku Hambisa</a>, Senior Research Associate, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/australians-are-living-and-working-longer-but-not-necessarily-healthier-new-study-shows-210542">original article</a>.</em></p>

Retirement Income

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"Entitled" widow sparks outrage over age pension question

<p>An elderly widow has been slammed for writing in to a financial column asking for advice, despite being very well-off.</p> <p>The 88-year-old (NOT pictured here) wrote in to Nine newspapers’ columnist Noel Whittaker asking for advice on how to access a pension after the death of her husband. </p> <p>“My husband and I received a part pension but he passed away and I now have all the assets but no pension,” she wrote to Whittaker’s <a title="www.smh.com.au" href="https://www.smh.com.au/money/super-and-retirement/i-lost-my-pension-when-my-husband-died-can-i-get-it-back-20230718-p5dp2g.html" target="_blank" rel="noopener">Ask Noel </a>column. </p> <p>“I am 88 and own my own home. I have $680,000 in savings and $180,000 in shares. My income is $25,000 p.a. is there anything I can do to get a part pension?”</p> <p>While the question seemed innocent enough, many Aussies were infuriated by the woman's query, sparking outrage on social media.</p> <p>One person pointed out how well off the woman was, mockingly saying, "We have $1m in assets. Can we get the age pension?”  </p> <p>Another person wrote, “Lady you’re 88, where are you getting 25k per year if not investments? You’ll be fine, Karen.”</p> <p>The pile-on continued, with plenty more slamming the woman for being “entitled”, greedy, and mocking her for wanting even more money than she already had to spend over her remaining years.</p> <p>One person added, “How much longer does this person think they’re going to live that they need more than $1 million …”</p> <p>Another person offered their own advice if the last needed more money, encouraging her to use her $680,000 savings, saying "That's what it's there for."</p> <p>Another person summed it up by writing, “The problem with old people these days is they’re too entitled. Back in my day, old people reused their tea bags and were grateful.”</p> <p>Many even commented that the question was the exact kind of “fake” submission dreamt up for columnists to “enrage readers”, and someone posed their own mock question to Whittaker to point out how ludicrous the woman's question was. </p> <p>“I own my own home, have 6 million ingots in assets, and my income is several gold bullion per month. I am 300 years old. I am a fire-breathing dragon. Can I claim the part pension?” they wrote.</p> <p><em>Image credits: Getty Images</em></p>

Retirement Income

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“A little bit unfair”: Hard-working tradies blast age pension increase

<p dir="ltr">A group of tired tradies have rallied against the “unfair” decision to increase the age of eligibility for the age pension.</p> <p dir="ltr">The tradesmen, all in their 60s, simply said their bodies “can’t handle” working in manual labour until they’re 70, which may be in their future if the eligibility age continues to rise.</p> <p dir="ltr">The age to qualify for the pension was raised from 66 years and six months to 67 on July 1st with the move impacting any Australian born after December 31st, 1956.</p> <p dir="ltr">Experts predict the age could rise even further to 70 by the year 2050 with the news sparking backlash among hardworking Aussies.</p> <p dir="ltr">One man, a concreter in his mid-60s named Steve, said working the manual labour job was already taking a toll on his body and that the new retirement age was “unfair” on those working physically demanding jobs.</p> <p dir="ltr">“Now I'm starting to feel it more in my knees, I've got arthritis in my hands, I've had two back surgeries,” he told <em><a href="https://9now.nine.com.au/a-current-affair/australian-tradies-outraged-over-decision-to-raise-pension-age-to-67/5b5c6dda-c995-44ad-bb29-98c625e9d276" target="_blank" rel="noopener">A Current Affair</a></em>.</p> <p dir="ltr">“It does seem a little bit unfair that you have to work all your life.”</p> <p dir="ltr">Peter, who cuts down trees in the Gold Coast for a living, compared the raising of the pension age to the harsh realities of his job.</p> <p dir="ltr">“It's just like climbing a tree,” he said. “The injuries are just climbing all the time, it's getting harder, worse, sorer all the time.”</p> <p dir="ltr">He described what was happening as “very scary”.</p> <p dir="ltr">“Unfortunately I thought 65 would be a nice time to retire and get on a pension but now we are talking 67,” he said.</p> <p dir="ltr">“Is it going to go up to 68, 69, 70?”</p> <p dir="ltr">Macquarie University Professor Hanlin Shang believes the pension age will need to rise to 70 or government spending will spiral out of control.</p> <p dir="ltr">He and other researchers estimate that the retirement age will rise to 68 by 2030, 69 in 2036 and 70 by 2050.</p> <p dir="ltr">“As Australians live longer than before, it presents a challenge to the government to fund retirees through a pension scheme,” Professor Shang said.</p> <p dir="ltr">Despite these challenges, Peter said politicians don't understand the burden that working physical jobs has on older bodies.</p> <p dir="ltr">“It would be nice to be a politician sitting on a nice comfortable chair all day in an air conditioned room or office,” he said.</p> <p dir="ltr">“They need to come out and see what it's like to do some physical work. That would make them change their mind in trying to stretch this pension out to 67, 68, 69, 70.”</p> <p dir="ltr"><em>Image credits: A Current Affair</em></p>

Retirement Income

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Balmain Private: A decade of trust and success

<p>Having celebrated its 10th anniversary in 2022, Balmain Private has firmly established itself as one of Australia's most reliable investment options. Since its inception in 2012, the company has consistently delivered impressive results, making it a trusted choice for individuals and advisers alike.</p> <p>With a track record of $244 million in interest paid to investors – and with an even more impressive capital loss of zero dollars – Balmain Private has demonstrated its commitment to delivering solid returns. Over the past decade, investors have enjoyed an average annual return of 7.56%*, with the highest reaching an outstanding 11.25% net return*.</p> <p>What sets Balmain Private apart is its unique approach to investment. The company empowers investors by allowing them to build, select, and manage their own portfolio of first mortgage loans. This flexibility appeals to a wide range of investors, including Retail, High Net Worth and Self-Managed Superannuation Fund investors, who seek alternative income sources beyond traditional options.</p> <p>At Balmain Private, the approval process for investment offerings is highly meticulous. Only the best loans make it to the investors, ensuring a carefully curated selection that prioritises quality and performance. Remarkably, more than 20% of loans repaid have exceeded the target return rate, while the rest have consistently met their target rate of return.</p> <p>Investing with Balmain Private is not only rewarding but also convenient. The entire process can be completed online, allowing investors to transact at their leisure. Whether on a PC, tablet or smartphone, investors have easy access to their portfolio. Additionally, Balmain Private offers a Mobile App that enables investors and advisers to manage, invest and review their portfolio on the go. The app allows for seamless depositing or redeeming of funds and provides downloadable reports right on your mobile device.</p> <p>To further enhance transparency and control, investors or their advisers can manage their portfolio through an intuitive online investor portal. This portal provides comprehensive details on current investments, capital movements, income distributions and transactions, ensuring that investors stay well-informed every step of the way.</p> <p>If you're ready to explore the opportunities offered by Balmain Private, you can download their complimentary <a href="https://info.balmain.com.au/rs/929-AKB-976/images/BPD%205727%20Target%20Market%20Determination.pdf" target="_blank" rel="noopener">Target Market Determination</a> (TMD), their <a href="https://info.balmain.com.au/FactSheetOrder-Over60_01LandingHomepage.html?utm_source=Over60&amp;utm_medium=Editorial&amp;utm_campaign=June&amp;utm_content=Editorial_TextLink" target="_blank" rel="noopener">Investor Fact Sheet</a>, or get in touch with their Investments Team at 02 9232 8888. For more detailed information, you can also visit their library of materials at <a href="https://linktr.ee/balmainprivate" target="_blank" rel="noopener">https://linktr.ee/balmainprivate</a>.</p> <p>Balmain Fund Administration Limited, with ABN 98 134 526 604 and AFSL No: 333213, serves as the issuer of units in the Balmain Discrete Mortgage Income Trusts ARSN 155 909 176. Before making any investment decision, it is crucial to read the Product Disclosure Statement (PDS) and the Target Market Determination (TMD) available on the company's website or by calling 02 9232 8888. It's important to carefully consider whether investing in the Trust aligns with your financial goals, as rates of return are not guaranteed and are subject to future revenue, which may be lower than expected. </p> <p>As with any investment, there is a risk of losing some or all of the principal investment. However, Balmain Private's exceptional track record and commitment to investor satisfaction provide a solid foundation for a successful investment journey. </p> <p>Choose Balmain Private for your chance to embark on another decade of trust and prosperity.</p> <p><em>Image: Shutterstock</em></p> <p><em>This is a sponsored article produced in partnership with Balmain Private.</em></p> <p><em>*Since inception. Past performance is not indicative of future performance. Investors should consider the risk associated with any Loan as set out in the PDS and any relevant Supplementary PDS (SPDS) pertaining to that Loan.</em></p> <p> </p>

Money & Banking

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Essential money conversations retirees should have with family

<p>Discussions about funding retirement, aged care and inheritances may be uncomfortable. However, not having them risks your wishes going unmet and family conflicts where details aren’t clear. </p> <p>Hence having discussions about money while you are able to is one of the best (and cheapest!) investments you can make – for both you and your family.</p> <p>Precisely what those discussions entail will depend on your circumstances – and theirs. Yet many points apply almost universally:</p> <p><strong>What matters to you</strong></p> <p>Even the best laid plans mean nothing if those responsible for enacting them don’t know what they are or understand your reasoning behind them.</p> <p>Your will provides a legal overview of who gets what upon your death, while nominated beneficiaries determine how assets are divided from superannuation and some other structures.</p> <p>A separate letter of wishes can informally share your wishes, covering more than just legalities. Sharing this before your death allows family to clarify your wishes and ask questions. </p> <p><em>Go through:</em></p> <ul> <li>How your money should be managed now and longer term (e.g., you may want money set aside for grandchildren’s education, or have instructions for a dependent’s ongoing care).</li> <li>Funeral arrangements; cremation or burial; where you will be laid to rest.</li> <li>Plans for anyone other than direct family, charities etc.</li> <li>Any non-negotiables among your wishes.</li> </ul> <p><strong>Partner protections</strong></p> <p>Ensure your partner knows how they will be looked after if they outlive you. Similarly, your kids should know what if any support they will need to provide – especially important for blended families. </p> <p>Where beneficiaries have divorced/separated, will you exclude their ex from your estate? Are your records updated to reflect this?</p> <p>Ensure everyone knows the difference between joint tenants and tenants in common for property owners – only one automatically leaves your share of the property to your co-owner. </p> <p><strong>Health matters</strong></p> <p>How do you want to be looked after in your final years? Don’t assume your loved ones already know everything.</p> <p>Communicate your wishes, small and large – medications, dietary requirements, retirement living, palliative care, resuscitation.</p> <p>Discuss whether power of attorney and enduring guardianship are needed should you be unable to make decisions over your health and finances (e.g., due to dementia or stroke), and who will assume those responsibilities.</p> <p><strong>Family legacy</strong></p> <p>Consider the legacy you want to leave and whether this aligns with your family’s expectations.</p> <p>Is dividing assets equally among your children really fair if one is well-off while another struggles or has complex needs? </p> <p>Do your plans on inheritance unwittingly create headaches for the recipients – such as leaving property to someone who cannot afford to maintain it, or tax liabilities that eat into any financial gain?</p> <p>Discuss non-financial legacy too: do your offspring know about your (and hence their) heritage? Are there special family mementos/stories to pass on? This knowledge may be lost if you don’t share it now.</p> <p><strong>Place to call home</strong></p> <p>Given their financial, logistical, and emotional implications, living arrangements are crucial to discuss before things need to change (and change can be imposed suddenly, such as by a health emergency). </p> <p><em>Consider:</em></p> <ul> <li>Where would you want to go if you need high-level care?</li> <li>Is your current home suitable in your advanced years? How would any required modifications be paid for?</li> <li>Would you move nearer your kids? Downsize, upsize or sea/treechange?</li> <li>If you move, would you need to sell your current home? Could it be retained somehow?</li> <li>Do you want/expect kids to care for you? Are they capable of doing so? </li> <li>Could/would you live with one of your children? If so – such as paying to build a granny flat on their property – how does this affect your will? Would they be forced to sell so their siblings receive their inheritance?</li> </ul> <p><strong>Team united</strong></p> <p>Having everyone on the same page helps things to run smoothly – especially during difficult times such as a death or serious illness in the family.</p> <p><em>Stay aligned by:</em></p> <ul> <li>Introducing adult children to your financial adviser, lawyer, and accountant.</li> <li>Ensuring everyone knows where to find your will and who is your executor.</li> <li>Disclosing what is and is not up to date.</li> <li>Providing contingency access to passwords, important documents, keys etc.</li> <li>Sharing relevant policy details (e.g., life insurance).</li> </ul> <p>These discussions may be sensitive and difficult to initiate, but are crucial to ensure your wishes are known and enacted. Plus, they may encourage your loved ones to think about their own wishes – and give you all peace of mind for the future!</p> <p><strong><em>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). 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></em></strong></p> <p><em>Image credits: Getty Images  </em></p>

Retirement Income

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Know thyself, know thy finances: which of the 5 money personalities are you?

<p><em><a href="https://theconversation.com/profiles/ayesha-scott-867030">Ayesha Scott</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> and <a href="https://theconversation.com/profiles/aaron-gilbert-867098">Aaron Gilbert</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a></em></p> <p>When it comes to money, are you a big spender or a fearful saver? Do you give away all your money or ignore financial demands until they become urgent?</p> <p>After decades of focus on financial literacy, it has become clear there is more to how we manage our money than access to information. Now new research has identified five distinct money personalities that drive how we spend.</p> <p>Commissioned by Te Ara Ahunga Ora (Retirement Commission) for their free, independent personal finance site <a href="https://sorted.org.nz/">Sorted</a>, <a href="https://assets.retirement.govt.nz/public/Uploads/Financial-Capability-Research/Report-Money-Personality-Tool-Project-AUT-vFINAL.pdf">our study</a> included an extensive review of the research on personality traits, values and attitudes. We then created an online survey, completed by nearly 500 New Zealanders, exploring how people engaged with their money.</p> <p>The research findings form the backbone of a <a href="https://sorted.org.nz/tools/money-personality-quiz">new online money personality quiz</a> designed to help people understand their money personality and inform their financial decisions and behaviour.</p> <p>With New Zealand <a href="https://www.rnz.co.nz/news/business/492013/new-zealand-in-recession-as-gdp-falls-for-second-quarter">officially in a recession</a>, it has never been more important to understand money management. Despite our best intentions, we often struggle to make “good” financial decisions consistently – including saving enough, using debt wisely, and staying on top of insurance policies and KiwiSaver.</p> <h2>Doing better with our money</h2> <p>According to Te Ara Ahunga Ora, New Zealanders are <a href="https://assets.retirement.govt.nz/public/Uploads/Research/TAAO-RC-NZ-FinCap-Survey-Report.pdf">good with the basics of financial capability</a> – budgeting and keeping track of money. But we score lower than comparable countries like Canada, Norway, Australia and Ireland on more advanced financial capabilities like long-term savings. We also lack confidence when it comes to our cash.</p> <p>There is a growing body of evidence that personality traits, money values and attitudes each play a crucial part in either aiding or hindering us making those “smart” financial decisions.</p> <p>Attitudes towards saving, the degree to which we value material possessions, and how comfortable we are with risk, will all affect the financial decisions we make – and, as a result, our financial wellbeing.</p> <h2>The 5 money personalities</h2> <p>We identified five distinct money personalities, each with their own strengths and weaknesses: the enterpriser, socialite, minimalist, contemporary and realist.</p> <p><strong>An enterpriser</strong> is a financially confident, future-orientated planner who enjoys looking after their finances and is proud of being money savvy. Their strengths include self-control, financial knowledge and making their money work for them.</p> <p>An enterpriser is unlikely to make impulsive or emotional purchases. However, their aspirational approach – viewing money as a priority and a symbol of success – may pair badly with materialism, causing them to spend money to gain status rather than for value or utility. Enterprisers benefit from learning about investing and planning for the future.</p> <p><strong>The minimalist</strong> is frugal, confident with their saving ability, and on top of their financial situation. Minimalists value a simpler life, scoring low on materialism and are not prone to impulsive or emotional purchases.</p> <p>Their weakness is not always making their money work as hard for them as it could, as they are less likely to take financial risks – even where there is a potential for higher investment returns. Low-cost, passive investment strategies may appeal to minimalists.</p> <p><strong>A socialite</strong> is a joyful risk taker, outgoing, and confident with their money handling. A generous extrovert, they are more likely to be materialistic than other personality types and tend to live for today rather than plan for tomorrow.</p> <p>Their high tolerance for risk suggests some socialites may take on unwise levels of financial risk. Those in this group who are also impulsive or prone to emotional purchases may find themselves overspending or vulnerable to over-extending themselves with consumer debt.</p> <p>Socialites may like to explore active investment strategies and riskier investment classes, however. Taking calculated risks and building financial resilience is an important focus for them.</p> <p><strong>A contemporary</strong> doesn’t enjoy managing their money and they lack confidence when it comes to financial matters. They are likely to say they’re a spender despite being less materialistic than others; living for today, they tend to engage in impulsive emotional spending and are generous to a fault.</p> <p>For contemporaries, the focus is increasing financial resilience by paying down debt and building an emergency savings fund, enabling them to share their wealth with others without affecting their own financial well-being. Working on their money mindset and general financial knowledge may allow them to build confidence and savings, then take a passive or “set and forget” approach to their financial life.</p> <p><strong>A realist</strong> is future-focused, very conservative with risk, and values money highly. But they are not confident with their money handling, despite paying close attention to their financial situation.</p> <p>The most introverted personality type, a more aspirational realist may be materialistic but is unlikely to make impulsive or emotional purchases a habit. This suggests building confidence and encouragement to take appropriate investment risks is important. Given they do not like making money decisions, automation of bill payments and savings may appeal.</p> <h2>Know thy money self</h2> <p>Each money personality offers different challenges when it comes to making financial decisions.</p> <p>Taking Sorted’s money personality quiz is fun, but it’s also a useful financial decision you can make right now.</p> <p>It’s not just about the label. Knowing your money personality can help you understand your strengths and weaknesses when it comes to financial decision making, giving you tools to improve your financial resiliency and security.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/207621/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/ayesha-scott-867030">A<em>yesha Scott</em></a><em>, Senior Lecturer - Finance, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> and <a href="https://theconversation.com/profiles/aaron-gilbert-867098">Aaron Gilbert</a>, Professor of Finance, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/know-thyself-know-thy-finances-which-of-the-5-money-personalities-are-you-207621">original article</a>.</em></p>

Retirement Income

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The 12 smartest cat breeds that are equally cute and clever

<h2>How smart is your cat?</h2> <p>Cats are delightfully complex creatures. If we dare to sleep in a few minutes late, they paw at our faces and meow, demanding breakfast. They can be warm and affectionate yet aloof when we’ve been away from the house too long. Even some of the smartest cat breeds display unusual cat behaviour.  But there’s no need for standardised tests to verify what we already know – cats are smart! Whether they’re mixed breed or purebred, small cat breeds or large cat breeds, the reality is that there’s no one accurate way to measure the intelligence of individual cats. However, recent research gives us some compelling evidence to back up what we know in our hearts: feline intelligence is unique.</p> <p>Are you clawing to find out which cat breeds are the smartest? Do they happen to be sleek black cat breeds, gorgeous orange cat breeds or all of the above? Experts say the ones on our list stand out when it comes to their trainability, insatiable curiosity, investigative skills and puzzle-solving brain power.</p> <h2>Do cats have a high IQ?</h2> <p>Before we reveal the smartest cat breeds, let’s take a closer look at just how clever these little lions are. We know that a cat’s brain is almost as structurally complex as a human brain. Cats have around 250 million neurons (tiny information processors) in their cerebral cortex, the part of the brain that solves problems, makes decisions, decodes emotions and creates complex behaviour, like why cats purr or why cats sleep so much. (In comparison, dogs have about 429 million neurons, and humans house an average of 86 billion.) And while more neurons in the brain does equal more cognitive ability, it isn’t necessarily a good indicator of intelligence. That’s because cognition can involve other areas outside the cerebral cortex.</p> <p>So why are dogs generally thought to be smarter than cats? Is it because they have more neurons? Nerdy science aside, there are a host of theories. For starters, dogs have been domesticated for thousands of years and have been living and learning social tasks from humans longer than cats. Temperament wise, dogs are more patient and generally eager to please their humans. In contrast, cats are typically less eager to please, though some are exceptionally cooperative. They tend to be more impulsive, have far less patience and get frustrated and lose interest in something that’s boring to them.</p> <p>However, cats are highly attuned to their surroundings, and how they interact and respond is expressing intelligence, says Teresa Keiger, an all-breed judge with the Cat Fanciers’ Association. That awareness is what helped cats survive for thousands of years in the wild. “I notice that cats who were rescued from outdoor living situations tend to be more intelligent, since they’ve had to learn to think on their feet,” says veterinarian, Dr Stephanie Wolf. Whether a mixed breed or pedigree, rare cat breed or fluffy cat breed, one thing is certain: cats are smart and trainable; they just might not all be interested.</p> <h2>1. Russian blue</h2> <p>When it comes to the smartest cat breeds, the Russian blue is so clever that it’s more apt to train you than the other way around. Like an alarm, the Russian blue will wake you up to feed it breakfast and remind you when it’s dinnertime. In fact, if you’re looking for an accountability partner to maintain a strict schedule, this might be the cat for you. “This quiet breed is very attuned to its household,” says Keiger. “They’re incredibly smart, and they wait to make certain that any stranger is not a threat to safety.” Once they’ve issued your security clearance, they form a tight bond and are regarded as an affectionate cat breed with their humans – so much so that they’re known for hitching a ride on their human’s shoulders.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Russian blue</td> </tr> <tr> <td>Height</td> <td>25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–20 years</td> </tr> </tbody> </table> <h2>Abyssinian</h2> <p>This gorgeous cat looks like it stepped out of the jungle and into your living room. From the forward-tilting ears to the large almond-shaped eyes and the stunning colours of its coat, it resembles a cougar. “Abyssinians are incredibly intelligent, good problem solvers and full of an insatiable curiosity,” says Keiger.</p> <p>Perpetually alert and busy, the Aby is happiest when patrolling its environment and playing with challenging interactive puzzle toys. “I always think of Abys as the MacGyver of cats – if they had thumbs, they’d figure out how to fix anything,” Keiger says. Intelligence aside, Abys are highly social cats and love people and other felines. Plus, they are one of the cat breeds that gets along with dogds.   Who knows? Maybe the Aby could teach your old dog a few new tricks.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Abyssinian</td> </tr> <tr> <td>Height</td> <td>30–40 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–15 years</td> </tr> </tbody> </table> <h2>3. Egyptian mau</h2> <p>The key to this exotic beauty’s happiness is sharpening its mental and physical skills. “Being able to offer enrichment is key to ensuring your cat is getting the best level of stimulation and exercise,” says veterinarian, Dr Julie Andino. That goes for all breeds, but this cat craves cat toys and activities that showcase its lightning-fast physical and mental responses. They’re so clever that they can even turn on the faucet to play in water – although we may never understand why some cats hate water when the mau wouldn’t miss an opportunity to splash their paws in it. After they’ve expended their energy figuring out the day’s puzzles, this cutie loves to snuggle up with their human.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Egyptian mau</td> </tr> <tr> <td>Height</td> <td>17–28 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–13 years</td> </tr> </tbody> </table> <h2>4. Burmese</h2> <p>One of the smartest cat breeds, the Burmese craves attention, something you can learn from its body language.  “This intelligent breed loves to entertain its resident humans so much that it often checks to make certain someone is watching,” says Keiger. They’re also known for being dog-like and enjoy a rousing game of fetch, an unusually quirky cat behaviour. And they’re adorably stubborn. “When they make up their minds that they want something, they simply don’t take no for an answer and usually figure out a way to get it.” And that includes attention from you. Burmese cats are all about give-and-take when it comes to affection, but if you’re busy and ignore them too long, they might take it upon themselves to follow you around the house, rub against your leg  or plop down on your lap and snuggle, all to remind you that you have a cat that needs some loving.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Burmese</td> </tr> <tr> <td>Height</td> <td>25–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–13 years</td> </tr> </tbody> </table> <h2>5. American bobtail</h2> <p>It’s one thing for the smartest cat breeds to learn new tricks, but when a cat also has emotional intelligence, that’s an impressive combo. These cute stubby-tailed felines are noted for their empathy and for providing a calming and assuring presence that’s equal to emotional support dogs. “They are also very in tune with their household and owners, offering a shoulder to cry on when needed,” says Keiger.</p> <p>They even act like dogs – playing fetch, walking on a leash and rushing to greet guests when there’s a knock on the door. Devoted companion, a lover of people and other animals, the American bobtail is an adorable and lovable companion.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">American bobtail</td> </tr> <tr> <td>Height</td> <td>22–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>13–15 years</td> </tr> </tbody> </table> <h2>6. Japanese bobtail</h2> <p>The smartest cat breeds are often breeds we have never heard of before. Take the Japanese bobtail, one of the rarest cat breeds in the world. Every Japanese bobtail has its own unique tail. Yes, you read that right. No two tails are ever alike. They consider themselves family members and are always ready to help, even if that means sitting on your sitting on your laptop. “They are active, intelligent, talkative cats who delight in mischief-making,” says Keiger. They love to travel, stay in hotels and quite literally jump through hoops and over hurdles to impress you – and entertain themselves. As brain power goes, it’s that human-like personality that makes them seem so bright. “Life is never dull with a Japanese bobtail,” Keiger says.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Japanese bobtail</td> </tr> <tr> <td>Height</td> <td>20–23 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–18 years</td> </tr> </tbody> </table> <h2>7. Siamese</h2> <p>The Siamese is wicked smart and loves to learn new tricks, Dr Andino says. If you don’t provide interesting and challenging outlets to exercise its noggin, it will find its own stimulating activities, whether you approve or not. If there’s one thing that competes with utilising its brain power, it’s the love and affection it craves from humans. If this cat had a daily schedule, “get affection from human” would be a top priority. And Siamese cats will let you know by that infamous yowling. “The Siamese are very vocal and communicative with their human,” says Dr Andino. They’re likely to talk your ear off, especially if they want something. One of the smartest cat breeds, the Siamese gets along well with people of all ages, as well as other animals. Bonus: if you take any stock in choosing cats most compatible with your zodiac sign, the Siamese happens to be very compatible with Libras.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Siamese</td> </tr> <tr> <td>Height</td> <td>20–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–20 years</p> </td> </tr> </tbody> </table> <h2>8. Bengal</h2> <p>The Bengal sports a jaw-dropping, highly contrasted coat of distinctive marbling – very similar to what you see on leopards and jaguars. Its striking beauty is why you should keep close tabs on your Bengal, as it’s the cat breed most often stolen. Beauty aside, this very confident and curious cat isn’t shy about asking you to play. Bengals tend to get a little set in their ways, so introducing new people and furry friends should be done at an early age, if possible. Need to lay down a few new house rules or teach it some tricks? No problem. Bengals pick those up lickety-split. Their athletic prowess is unmatched, but they need plenty of space to run, pounce, roam and jump – some even love to walk on a leash and explore the outdoors. Bengals are super sweet and often very chatty (here’s what their meows may mean) and happy to engage you in a conversation.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Bengal</td> </tr> <tr> <td>Height</td> <td>20–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>12–16 years</td> </tr> </tbody> </table> <h2>9. Korat</h2> <p>Did you know that the smartest cat breeds could also bring you good fortune? The Korat is one of Thailand’s good luck cats, and no, they don’t mind if you pet them several times a day to increase your luck! Korats are freakishly observant and will watch everything you do. Don’t be surprised if they learn how to open their own box of treats. They’re a devoted companion, an outgoing feline and enjoy having guests in the house. One reason is they love to snoop. Like the nosy houseguest who peeks in your medicine cabinet, the Korat returns the favour, sniffing and investigating your guest’s shoes, purses, coats and anything else that piques their interest. Because Korats thrive when they are around people, being alone may cause cat anxiety.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Korat</td> </tr> <tr> <td>Height</td> <td>23–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>10–15 years</p> </td> </tr> </tbody> </table> <h2>10. Bombay</h2> <p>Bred to look like the Indian black leopard, this midnight-black kitty walks with a sway much like its wild counterpart and is equally gorgeous and clever. Bombay cats are exceptionally friendly, outgoing and lovey-dovey. Family life is their jam, including younger humans and furry siblings. “The Bombay kitty is great at being trained, and they’re very motivated to show their people what they are capable of learning,” says Dr Andino. These cats thrive with continuous education, learning new tricks and solving challenging interactive puzzles. And when the love bug hits them, watch out. They will hunt for your lap and crash there until they get enough pets and belly rubs.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Bombay</td> </tr> <tr> <td>Height</td> <td>23–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>12–16 years</td> </tr> </tbody> </table> <h2>11. Havana brown</h2> <p>The brownie, as its fans dub it, is deeply connected to humans and savours affectionate companionship. (Havana browns insist on being involved in whatever you’re doing, yet they are remarkably sensitive and use both their paws to gently touch their humans. They share DNA with the Siamese, but their meows are quieter, charming and almost flirty. They might prefer the company of one favourite human over others in the family but tend to get along with humans of all ages, as well as furry roommates. Perhaps the most interesting characteristic is how they investigate. While most felines examine things with their nose, Havana browns use both their paws to check out trinkets and treasures.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Havana brown</td> </tr> <tr> <td>Height</td> <td>23–28 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>8–13 years</td> </tr> </tbody> </table> <h2>12. Singapura</h2> <p>The Singapura is the smallest domestic cat breed, with a whole lot of feisty goodness in a tiny package. If those big saucer eyes and adorable face aren’t captivating enough to get your attention, you might need some catnip. And don’t let the small frame fool you. Under that fur lies a muscular and athletic body. The Singapura is a social butterfly, always looking to be the centre of attention, in the cutest, playful ways. They are the life of any party, whether they’re invited or not. Conversations with Singapuras are a pure delight as well and never get stale – you could listen to their sweet meows for hours, and they’ll love your high-pitched baby talk just as much. Keenly observant, intelligent and extroverted, these cats still act like kittens well into adulthood.</p> <table> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Singapura</td> </tr> <tr> <td>Height</td> <td>15–20 centimetres</td> </tr> <tr> <td>Weight</td> <td>2–4 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>11–15 years</td> </tr> </tbody> </table> <p><em>Image credit: Shutterstock</em></p> <p><em>This article originally appeared on <a href="https://www.readersdigest.com.au/food-home-garden/pets/the-12-smartest-cat-breeds-that-are-equally-cute-and-clever" target="_blank" rel="noopener">Reader's Digest</a>.</em></p>

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Are bigger super funds better? Actually no, despite what the industry is doing

<p><a href="https://theconversation.com/profiles/geoff-warren-3657">G<em>eoff Warren</em></a><em>, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a></em></p> <p>Australia’s superannuation funds are getting bigger – and fewer. There were <a href="https://www.theguardian.com/australia-news/2021/aug/29/australian-superannuation-mergers-cut-number-of-funds-by-half-in-a-decade">close to 400</a> funds in 2010. With mergers, it’s now <a href="https://www.investordaily.com.au/superannuation/53144-are-mega-funds-poised-to-dominate-the-super-industry">closer to 120</a>. By 2025, according to industry executives surveyed last year, there will be <a href="https://www.investordaily.com.au/superannuation/50971-rise-of-mega-funds-set-to-intensify-erasing-100-funds-by-2025">fewer than 50</a>.</p> <p>The portfolios of the two biggest super funds, AustralianSuper and Australian Retirement Trust, are bigger than even the federal government’s Future Fund Management Agency, which oversees the A$194 billion <a href="https://yearinreviewfy22.futurefund.gov.au/performance-results.html">Future Fund</a> and several other funds worth a total $242 billion.</p> <hr /> <p><iframe id="0wOBb" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/0wOBb/5/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>Underpinning this consolidation is the idea that larger scale is beneficial for superannuation fund members. But that’s not necessarily true. A bigger fund is no guarantee of better returns.</p> <p>I’ve examined the issue of fund scale with Scott Lawrence, an investment manager with 35 year’s industry experience. Together we’ve written <a href="https://theconexusinstitute.org.au/wp-content/uploads/2023/03/Does-Size-Benefit-Super-Fund-Members-24-March-2023.pdf">a report</a> for the Conexus Institute, an independent research centre focused on superannuation issues.</p> <p>Our conclusion: funds, large and small alike, succeed or fail depending on how well they formulate and execute their strategies.</p> <h2>Managing assets in-house</h2> <p>The first potential benefit of bigger size is that funds can manage assets using their own dedicated investment professionals, rather than outsourcing everything to external investment managers to invest on their behalf.</p> <p>For example, UniSuper (the higher education industry fund) manages <a href="https://www.unisuper.com.au/investments/how-we-invest/investment-managers">70% of assets in-house</a>. AustralianSuper, with more than double UniSuper’s assets, manages <a href="https://www.australiansuper.com/-/media/australian-super/files/about-us/annual-reports/2022-annual-report.pdf">53% of assets</a> in-house.</p> <p>This can be cheaper than paying fees as a percentage of assets to these external providers. It offers more control as the super fund can decide the assets in which they invest, rather than leaving the decision to someone else.</p> <p>But fund members will only benefit if the internal team makes investment decisions that are as good as the service they are replacing. For this reason, there is no reliable correlation between performance and degree of in-house management.</p> <h2>Investing in big-ticket items</h2> <p>The second potential benefit is it becomes more possible to become successful direct investors in “big ticket” assets such as infrastructure and property, instead of just focusing on shares and other assets traded on stock exchanges.</p> <p>For example, AustralianSuper owns <a href="https://www.australiansuper.com/-/media/australian-super/files/about-us/media-releases/australiansuper-increases-investment-in-westconnex.pdf">20.5% of WestConnex</a>, Australia’s biggest infracture project, having contributed $4.2 billion to the consortium that is building the mostly underground toll-road system linking western Sydney motorways.</p> <p>Opportunities like this are easier to access by large funds, and can help to diversify their portfolios.</p> <p>But such direct investment is costlier than buying shares and bonds. This limits the potential for fee reductions.</p> <p>For members to benefit, these investments must deliver attractive returns. This requires a fund developing capability in what are specialised markets. Size alone won’t deliver on its own.</p> <h2>Economies of scale and scope</h2> <p>The third potential benefit is that size brings economies of scale and scope.</p> <p>Scale can reduce fees, by spreading the fund’s fixed costs over a larger member base.</p> <p>Our review of the research literature confirms there are solid reasons to expect administration costs to reduce with size, as well as in-house management reducing investment costs.</p> <hr /> <p><iframe id="26cxr" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/26cxr/3/" width="100%" height="400px" frameborder="0"></iframe></p> <hr /> <p>Economies of scope involve an organisation being able to improve or increase services, say by investing in better systems and more staff.</p> <p>But investing in better systems also brings potential pitfalls. Big visionary projects tend to run over time and over budget, and sometimes fail.</p> <p>An example is the disastrous attempts of five industry funds (AustralianSuper, Cbus Super, HESTA, Hostplus and MTAA Super) to develop a shared administration platform, called Superpartners. It was meant to cost $70 million, but development costs blew out to $250 million before <a href="https://www.investmentmagazine.com.au/2016/12/link-group-completes-superpartners-integration/">they gave up</a>.</p> <h2>Size brings its own challenges</h2> <p>Large funds also face some unique challenges. Because they have more money to invest, they have more work to do in finding sufficient attractive assets to buy.</p> <p>The risk is they need to accept some assets offering low returns to do so. They can also outgrow some market segments, such as owning shares in smaller companies.</p> <p>Large organisations are typically more complex, more bureaucratic and less flexible. They can find it difficult to coordinate staff to work towards a common purpose. These elements may create dysfunction if not managed.</p> <p>This may explain why, despite the potential increased scope of their offerings, surveys suggest large funds tend to deliver <a href="https://www.investmentmagazine.com.au/2022/08/members-willing-to-pay-for-better-service-post-retirement/">less personalised service</a>.</p> <p>So the idea “bigger is better” is not necessarily true. Large size is not an automatic win. Whether the advantages outweigh the disadvantages and challenges ultimately depends on fund trustees and management doing their jobs well so that members benefit.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/203417/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/geoff-warren-3657">Geoff Warren</a>, Associate Professor, College of Business and Economics, <a href="https://theconversation.com/institutions/australian-national-university-877">Australian National University</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>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/are-bigger-super-funds-better-actually-no-despite-what-the-industry-is-doing-203417">original article</a>.</em></p>

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