Ready to retire below the poverty line?
Did you know Australia has one of the highest rates in the developed world of over-65s living below the poverty line? According to OECD figures, just over 35% of our seniors have incomes less than half our median income - second only to Korea and nearly three times the OECD average.
It’s not an achievement we should be proud of. And it’s a very real wake up call if you’re wondering whether you should care about your super just yet.
Because the answer should be yes – unless you’re happy to live below the poverty line.
It’s a real and growing problem, particularly for older women. More than half a million women over 65 live below the poverty line, and they are the fastest growing group of homeless Australians. Often unexpectedly single due to divorce or widowhood, they don’t have a big pot of superannuation handy because they were working before it became compulsory, and then took several years out of the workforce to look after their families or had sporadic, part-time careers.
And if you think the age pension will be your safety net, think again. From 1 July 2017 the qualifying age will gradually increase from 65 to 67 for both men and women born on or after 1 July 1952. This sends a clear message from the government that if we want more than a modest lifestyle we really need to be self-reliant in retirement.
So what will your retirement really be like?
Will you be spending two-thirds of your retirement income on rent, and eke out an existence on baked beans? Will you cross your fingers and hope the kids will build you a granny flat?
Or are you ready to take control of your retirement savings – so you have enough in your pot to make the choices you want to make, after a lifetime of work?
Map My Plan can help. Take a free 90 day trial to check if you’re on track.