Hi Guys,
not sure, if everyone watch the morning news this morning, the interesting news media for this morning was about…
the government push, to have older people, but who are very close to retirement, but to continue working longer and to delay their ideas of retirement….
…. obvious the government are screwed… to many older people, and many baby boomers, but also at the same time, not enough working force in the younger generation to support this generation of people and to provided them with such incomes as old age pension and other government assistance.
What the government is deciding to do… is to make the older generation… delay their ideas of retirement or early retirement, through tax benefits and cuts… yet again… no explanation of tax benefits were outlined or discussed.
the other important issue was…
the government are thinking that to make living expenses and life styles more affordable but reasonable is to reduce income tax to 30% like company tax and to increase capital gains tax…
ok… i dont really like this idea… but reducing income tax, isnt going to make much more differnece, but increases the income of higher incomer earners, and put more seperation into the system, which is trying to be rebuilt and fixed….
and increasing captial gains tax… i dont think so… but others might disagree…
Do our government, have any idea, on how to run our country… or we heading towards a disaster…. or are they just trying to promise the hopes of many Australians?
Cheers,
sisI heard that on the radio on the way to work today,
I wonder what will happen when all the baby boomers retire.. anyone know the year of that? Government pushin these pplz to work longer to avoid such a rescesison? Similar story as in Prophecy by kiyosaki.. any views on this?What I learnt yesterday, I know better for tommorrow – Dean
Hi Kenshin,
is very similar to Robert Kiyosaki prophet… it has really got me thinking… but what ever the government interest is and the way they act upon this problem, could be lots of opportunties ahead or could close the gaps and taxation benefits towards, income tax earners and investors…
by the way Kenshin, i think the year will be 2011, but thats American, but am looking forward to watching the news tonight and to listen more about what government reforms that might take place, or thinking of…
Cheers,
sisAhh i m workin 2nite so no TV.. let me know if you hear anything SIS.. cause this definately will be some news u wanna know for the future.
What I learnt yesterday, I know better for tommorrow – Dean
will these developments lead to a whole new group of people looking to find income streams so they can retire earlier. This would push up house prices. or will the government be forced to dramatically increase imigration pushing up home prices? it may not be bad news completely.
regards westan
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as westan says it will force people to either work longer or to find more income streams than they already have. More investors, probably likely to lead to higher housing prices
i wonder whether the difference in the reduction of income tax will be offset by the increase in CGT – wouldn’t this force people just to hold their properties even longer and thus push up housing prices again due to scarity?
cheers,
bluecatDo today what you want to do tomorrow
old news gents – thats why beachside properties have taken of, docklands inner city living dvlpment is huge, etc etc because the population is getting older. thats why we gen x’s wont be able to access our super till we are 70 and even then we wont get lump sums
house prices
it depends on whether you think higher house prices are a good thing – pity the first home owners who have a hecs debt and paying taxes for all you guys so you can retire early.
For those gen x’ers, super should be viewed as a bit of a top-up over and above your own investments for retirement.
Most gen x’s would be mid-30’s (oldest), so they are going to have at least another 30-40 years before they retire. Surely that is enought time, to financial independence.James
so james – i have to work till im 65-75 whilst my father and father inlaw get to retire at 55.
thats doesnt seems fair.
My point is that if you are in the your 30’s or even 40’s today, I wouldn’t be relying on super/pensions to give you an enjoyable retirement. So whether it is 55, 60 or whatever, it really shouldn’t be a huge issue for us. Not so for those who are close to retirement age today.
I don’t think that the age of retirement is or should be forever 65. Surely we have to see this as what impact this has on the taxpayer (most of us). We could continue like the US are doing, going into huge debt, and will/have significant social security shortfalls in the years to come. Or make some hard decisions today, which give some surety in the longer term to retirement planning.
James
Originally posted by georgisj:For those gen x’ers, super should be viewed as a bit of a top-up over and above your own investments for retirement.
Most gen x’s would be mid-30’s (oldest), so they are going to have at least another 30-40 years before they retire. Surely that is enought time, to financial independence.James
So long , of course, as I live that long. Working till 75 urrrggghhhh no thanks, I am ready for retirement now at 34.
Brent2
As a baby boomer myself, I am sad to say that our generation is far more self centred then any before. They have much of the wealth of society tied up in assets and high paying jobs, however they are voracious consumers. Their one saving grace is that they are not afraid to break conventions.
I expect that nursing homes and hostels will be designed differently in the future to cater for boomers. More aesthetics and things to do to keep one interested. As long as dimwit backward councils pull their finger out and recognise the need to allow higher density dwellings for such.
I tend to agree there will be a boom in the wellness industry too, as boomers like to take health care into their own hands.
I have long been interested in reducing the cost of housing for the elderly. God, people over 65 don’t need a 5 bd, 2 bath, 3 dlug, monstrosity. Why have all that wealth tied up in a house when it could be invested in the the share market, grand kid’s education, investing in son’s business etc etc.
As a boomer who did a lot of backpacking before it became a consumer item, I am not afraid to live in cheaper communal type settings when I get older and infirm. Such settings are much healthier in so many ways, then living with spouse alienated in suburbia.
As for the govt talking about seniors working longer, it is to be expected. Ageing boomers present a real problem. pensions cannot be sustained as they curerntly are, nor nursing home care. ( I am a physio who does contract work for a home and know first hand the problems). And I am also intending to work part time until 70-75, health willing. i have a couple of great role models in this respect.
A large part of the solution lies in families taking more responsibility for their family members. After all, it is the children and grandchildren who benefit most by a grandparent being put in a home, as they end up with more free time to pursue their own self interest.
Bruce
Mooloolaba, QldHey Guys,
so really all up… many of us who, are under the age of 40, if this is how things seem to be shaping up…
there could be the possibilty that retirement for us could be at age 75+ …. is that right or do we have a huge shortfall coming up ahead of us…. in only the next few years coming????
Cheers,
sissis heres what we nees to do
– buy 100 + properties and live of the income because we dont wanna work and in retirement we wont get a pension.
– learn to live with much less than we have now
– live in the mountains because global warming is gonna cause the seas to rise and flood most of our cities. warming will also make it cooler to live in the mountains ie 4- 6 degrees less.
– buy in the southern states because all the northern states will be too hot and the upcoming power shortage in the world will make it too expensive to run airconditioners.
– buy yr ppor near a good public school because you wont be able to afford private school fees on top of yr aircon bills
– wear a mask whenever possible
– be kind to yr grandparents
other than that no need to be paranoid
good luck
I was thinkin, buying a life time’s worth of food supply and lock myself in a bomb shelter.. oh i need internet access though to access this forum! [
]
Is that parnoid enough? heheWhat I learnt yesterday, I know better for tommorrow – Dean
Hi Kenshin,
there was some definite talk last night on ACA, with Peter Costello, anouncing that this year in July there will be some changes in Superannuation and tax benefits and reliefs.
The main push that will be, but not exactly said in detail, is that the government will push for earlier access to your superannuation (though im curious to know if this will be restricted to an age group limit, as nothing was mentioned.)
secondly the push for older workers, who are on the edge close to retirement, to stay in their job longer, while at the same time be able to access their super to keep at an affordable living and lifestyle and almost at the same income, if they were to be working full time instead.
Do see a few advantages here, but still dont see any tax reliefs the were talking about, yet no tax reliefs or benefits were mentioned.
The other problem too is, it will be again dependant on how much money you have in your superfund, before you start slipping yourself money, ensuring that your superfund can still perform at a profit, and break even, before you decide to full retire and access full weekly amounts of super in your retirement years.
And if so, this is just my predicticment (sis prophet), if we are able to access our superfunds and roll them into our MGMT funds, for the many older retirees who have general but good understandings of investing, most likely will transfer their superfund, into other performing superfunds or even, other annuity programs, but most likly a big definite push towards other types of ADF (approved deposit funds), the main reason being is that it only pays 15% tax on its investment earnings, which in contrast could mean more ADF will be avail, but this again will be dependant on how their own superfund has been performing with the current superfund.
in effect… companies that (cant say the word shares, but you guys know what i mean) pool peoples superannuation funds together, could begin to perform poorly due to the amounts of money being pulled out, leading towards a downslope or a stockmarket crash ahead….
In effect again, this could cause, for the younger geneartion of people who have only small amounts of money in their superfund, to lose out big time, or will also make them, pull out/roll over there superfunds into other performing investment vehicles.
Which based on theory, on my finishing sentence here, but also in reality is different, when shares begin to perform badly, an interest in the property market occurs…. which could lead to another big boom ahead in the property market and in property trusts(which again are other MGMT funds, but invest their monies in property)
Cheers,
sisThanks for the info sis, u got some some good theories going on there.. we will only know in 2011?
What I learnt yesterday, I know better for tommorrow – Dean
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