In its response to the 2015 Intergenerational Report the Financial Planning Association (FPA) has called on the Government to encourage more Australians to seek the services of a financial planner in order to help better fund their own retirements.
Australians are living longer causing pressure on social security funding. Male’s life expectancy at birth is 95.1 compared with females at birth being 96.6. So if you retire at the age of 65, you will have to fund your retirement lifestyle for up to 30 years or more. This stretches the government funding for social security as Australia currently only has 4.5 working Australians to every person over the age of 65 and this will decrease to 2.7 working Australians for every person over 65 by the year 2055.
The above statistics are alarming when you think about the future of our children and grandchildren. If we rely on the age pension to fund our retirement there will have to be cuts made to funding in other areas of the economy ie Healthcare, Education and Infrastructure. Being a self-sufficient retiree takes pressure off the economy, which improves the financial outlook for future generations.
At Roberts & Morrow Financial Services (RMFS) we can help guide you to a better retirement through developing strategies now, which allow you to have a higher standard of living in retirement. RMFS can manage your longevity risks with your superannuation and investment balances so you can be financially secure in retirement.
You may be helping the government with the economy, but at the end of the day being a self-sufficient retiree is also providing a better future for your children and their children.