Baby Boomer spending could strain the future of Government Pensions as they take on Growing Debts

Baby Boomer spending could strain the future of Government Pensions as they take on Growing Debts

Baby Boomer spending
could strain the future of
Government Pensions as
they take on Growing Debts

“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.

Advertisements

About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
This entry was posted in Retirement Planning and tagged , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s