Health struggle for many working until 70

POOR health will make working longer a challenge for about a quarter of Australians aged in their 60s when the pension age is raised to 70, a report predicts. 

IT says the majority of retired or unemployed Australians in their 60s will not have enough superannuation to fund their retirement in 2035, when the federal government plans to lift the age pension access age to 70.

The modelling by AMP and NATSEM shows one in four men and one in five women aged in their 60s will be in fair or poor health in 2035, reducing their ability to work and save for a quality retirement.

For those people, the majority of men and more than two-thirds of women are likely to be unemployed.

"It is these Australians who may struggle to participate in the workforce if the pension age is increased to 70 years," the report, released on Thursday, says.

AMP chief customer officer Paul Sainsbury says Australians are living longer but more years in retirement places more strain on superannuation balances so many people will need to work longer.

"Early years in retirement should be a transition period with reduced levels of work, giving people more time to focus on their interests and well being, while still saving money," he said.

HEALTH EFFECTS ON RETIREMENT BY 2035

* Working longer a challenge for 25.6 per cent of men, 20.4 per cent of women in fair/poor health aged 60-69

* 65.1 per cent of men, 72.1 per cent of women in fair/poor health likely unemployed in their 60s

* 48 per cent of people now 40-54 and in very good health likely to decline to fair/poor health

* For those now 65-69 and in good health, 33.1 per cent likely to be working; 15.7 per cent if in fair/poor health.

(Source: AMP and NATSEM (National Centre for Social and Economic Modelling) income and wealth report.)

·         AAP

·         June 10, 2015 5:18PM

As this is a core belief of our & as we advised clients yesterday we have reached retirement age &  still jogged to local shops before a beer.

I.e. it works for us.

For our solution to your probable problem
 there is a meeting here in Brisbane on 18^th June.

Otherwise ask us for our two page explanation why everyone should take the ‘leap of faith’.

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.

As others do call us on  07 3848 1088 or email  or visit our new website

John McAuliffe

What Catherine said that Joe & Tony & you & I should note.

‘Nothing short of a philosophical and mindset shift is required’.

‘So let me now turn to three public policy areas that exemplify the degree of change required: health, education and the retirement income system.’

That is what we always tend to do - we begin with a solution, like a price signal, or a fee change, or an eligibility change, and it's the wrong place to start.
We have to start by asking ourselves “what is the problem we are trying to solve, what outcomes are we seeking and what do we want to move from and to?”
If we do not adopt this architecture in our approach to the big policy issues, we will continue to have the community reject what they perceive to be disconnected and short sighted interventions.

Health – Philosophical Shifts
In health, we need to change the mindset from one of fixing people when they are sick, to enabling them to stay healthy for as long as possible.
Put bluntly, the focus needs to shift from the second 50 years of life, to the first 50 years; that is, preventing the things that are preventable and preserving constrained resources for those which are not.

Education – Philosophical Shifts
Turning now to education and training.
We must move away from the notion that work is something we begin after a long period of study, to one where work is integrated with learning.
Given that an estimated 75 per cent of the fastest growing occupations, including those in the creative industries and humanities, will require STEM related skills and knowledge, the imperative for introducing these foundational skills into the primary and pre-primary curricula should be unassailable.
By STEM skills, I mean maths and science, yes, but also computer coding, computational thinking, problem solving and design thinking.
As it stands in Australia, however, the gap between the digital literacy of our young people and that of our competitor nations is increasing.

Retirement Income
Finally, on the so-called retirement income system, the philosophical shift we need is to rethink the current concept of retirement.
This means a paradigm shift about people working longer and training later in their life as the types of jobs available, and the type of work they can do, change.
The role of government would be to provide an adequate safety net, but more importantly to assist people to become, and stay, independent by fully participating in the economy.

Leadership

In the first instance, however, the leadership  must come from our elected representatives, and this includes the opposition, minor parties and independents, who are all part of our governance structure.
The role of these representatives is to provide leadership, not to be re-elected.
It must be leadership characterised, not by positional power and, as Jennifer Hewitt notes “a preoccupation with the political present, but by strong personal values, consistency, respect and transparency.”

And who is Catherine Livingstone?

The full article in front of the Press Cub in Canberra on 29^th April 2015 is very worthwhile reading by You & I & we trust Tony & Joe were there & listened to Catherine.

Can Australia take the adult step that the UK just showed in their recent election?

We viewed Country House Rescue on Sunday where Simon the business advisor was invited in for his advice. It wasn’t taken & Francis the Failure will be remembered as losing for the family 400 years of history & wealth. His F*** language was not cut as it emphasized his frustration & unwillingness to bend.

Will you Listen?

Lets preserve & increase our self reliance.

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.
As others do call us on  07 3848 1088 or email  or visit our new website

John McAuliffe

Compare your two supers.

We had the occasion this week to compare two supers as Shane* intended to switch into arguably a low cost fund  where is his  work super is. 

I.e. Shane* was under the illusion that low cost means it must be better. 

 He had seen the advt. which suggests that our one is smaller than your one.

This could very well be true.

As an adviser we are expected  & it is our mission to provide benchmark advice.

In fact Shane* pays us to do so

So we accessed a comparative tool that we subscribe for to help our clients make considered decisions.

We produced this comparison of their performances 

Performance data as at date	28 Feb 2015	28 Feb 2015
3 month	6.20%	11.62%
1 Year	15.26%	18.24%
3 Year % p.a.	12.59%	22.39%
5 Year % p.a.	9.92%	13.72%
* After tax and fees

Which fund would you select?

On the comparison chart we also produced a fee difference chart  & yes there is a fee difference. But it is not ~4%.

APIR	N/A	N/A
Asset type	Multi-Asset	Equity
Subregion	Australia	Australia
Multi-manager	Yes	No
Management fee**	0.30	0.99
ICR**	0.63	0.99
Buy/sell spread*	0	0.30
Mercer Capability Rating	N/A	B+ (P)
Fee Ranking	Not calculated	Not calculated
Fund Status	Open	Open

As you might observe these are different types of funds as we are unclear what fund Shane* was churning to. As it wasn’t under our advice & his own choice then it is likely to be the default fund.

Shane* now has all the facts so that he can make a judgement call. 

It is his call but as in the real world performances count.

Nothing has changed & you get what you pay for.

We have seen plenty of noise regarding the care of big institutions. Recall it is the big guys that that tell the big lies which is why they are so big.

Yes if you are considering switching then yes we can provide you with a full comparison between funds. 

Just ask us how on 07 3848 1088 or email or our websites.

As Mark* who has 1.5m in cash today said he wants & expects honest advice. If he should not proceed then he expects to be told. He ‘does not want yes men’.

We had James just call us. We helped him in last two years stay afloat by accessing his super. If you are like James & over 55 & need some guidance that you too could call us. 

We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.

If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.

John McAuliffe