POWERED BY MOMENTUM MEDIA
Baby boomers’ retirement plans key to Australia’s future
Baby boomers will need to adequately prepare their finances for retirement, not only for themselves, but to ensure Australia's future prosperity, a new report claims.
The AMP.NATSEM Report said the current high levels of youth unemployment across Australia could have a significant impact on the nation's prosperity as baby boomers move into retirement.
With youth unemployment 4.5 times higher than it is for those aged 20 and over — at 27.2 per cent compared to 6.2 per cent, AMP chief customer officer, Paul Sainsbury said young Australians were not gaining the experience required to fill the void left by retiring baby boomers.
"People over 65 are projected to make up nearly a quarter of the population in the future," he said.
"As older people leave the workforce they will take with them skills and experience, while many young people are struggling to find work. As a consequence, it might mean that younger people are not getting the experience they need to do these jobs in the future."
The report forecast that the proportion of working age people would drop to 60 per cent by 2050, down from 67.4 per cent in 2010.
"The report highlights the challenges of an ageing population," he said.
"With lower birth rates and much longer life expectancy, it is critically important for people to adequately plan for their future so they not only enjoy a comfortable retirement, but also Australia remains prosperous as the workforce composition changes."
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
32.16 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
