“Australia is headed for a retirement savings disaster, with increasing numbers of baby boomers resorting to the aged pension after spending their entire superannuation to pay off debt, a CPA Australia study has shown. In light of the new study findings, the accounting body CPA is calling on the government to consider a major overhaul of the lump-sum payment system, claiming it is a problem that needs fixing. ‘It is time for leaders of every stripe to set aside the standard vested interest arguments and seriously consider how the system could be rebuilt for optimum result – this includes leaders in politics, business, unions and the funds industry,’ said Alex Malley, Chief Executive at CPA Australia.” reported Linda Hausken, Financial Standard READ MORE.
“Baby boomers are taking on growing debts as they approach retirement, in a trend that threatens to undermine their future savings and leave taxpayers with a hefty bill, a new report says. The report, to be published today by CPA Australia, says housing debt among people aged 50 to 64 jumped 123 per cent between 2002 and 2010, while other debts rose 43 per cent. This growth has easily outpaced the growth in many peoples’ biggest asset – their homes – with property assets rising 58 per cent over the same period.” writes Clancy Yeates, The Sydney Morning Herald.