Retirement
Do we need a new social contract for retirement?
Nearly half of today’s retirees and workers think future generations will have worse retirements than themselves, a recent report recommending a “new social contract” has found.
Do we need a new social contract for retirement?
Nearly half of today’s retirees and workers think future generations will have worse retirements than themselves, a recent report recommending a “new social contract” has found.

Multinational pension and asset management company Aegon’s latest retirement readiness survey found 49 per cent of surveyed retirees and workers predict future generations will have worse retirements.
In Australia, this figure is 44 per cent, with 19 per cent predicting future generations will enjoy better retirements and 27 per cent predicting retirements of a similar quality.
It said the current generation of workers are “losing faith” in retirement systems around the world. It also found that only 7 per cent of workers and retirees think the government shouldn’t do anything to meet the increasing social security needs, and consider the system to remain “perfectly affordable” in the future.
Additionally, only 39 per cent of workers surveyed consider themselves to be “habitual savers” with an eye on retirement.

“In a world where 49 per cent of people believe that future generations will be worse off than those today, there is a compelling case for a new social contract that leaves no one behind,” manager of retirement research at Aegon Mike Mansfield said.
CEO, Alex Wynaendts added, “We need a new social contract for retirement; one in which we, for the first time, truly embrace the economic and social realities of tomorrow.”
Aegon said retirement systems tend to have three pillars, a social security pillar, workplace retirement benefits and personal savings.
It found that Australians rely on social security for 38 per cent of their income, followed by their own savings and investments (36 per cent) and employer contributions (26 per cent).
However, the government and employer contribution pillars around the world are under strain due to ageing populations and changing labour markets.
Aegon said the blows to these aspects of the retirement system reflect a “crumbling” social contract.
“Perhaps the biggest challenge of all is that we need to ensure the long-term sustainability of social security benefits,” Mr Wynaendts said.
“Ultimately this requires governments to make difficult financial decisions and trade-offs, such as reducing retirement benefits, raising taxes or increasing the retirement age.
“What we need is to ensure fairness across generations, reducing the risk of poverty for the elderly now and in the future.”
The report suggested a nine-pronged approach to building a new social contract, which included ensuring social security remains sustainable, incorporating behavioural economics into savings schemes and increased promotion and uptake of guaranteed lifetime products.
Aegon also argued longer working lives and flexible retirements would help workers stay "economically active" for longer and transition into retirement on their own terms. It noted that affordable and accessible healthcare is a crucial pillar of longer working lives.
“Individuals must be able to ask good questions and make informed decisions,” Aegon added.
“Financial literacy must be integrated into educational curriculums so that young people learn the basics of budgeting, investing and managing their savings – skills that can serve them well for the rest of their lives.”

Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more

Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more

Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more

Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more

Retirement Planning
Planning systems under scrutiny as Australia's ageing population grows
The Retirement Living Council (RLC) has called for governments to address planning system shortfalls in preparation for Australia's ageing population, following the release of new data from the ...Read more

Retirement Planning
Retirement Living Council calls for focus on seniors' housing as population ages
The Retirement Living Council (RLC) has urged governments across Australia to prioritise age-friendly housing solutions in response to new data revealing an ageing population. Read more

Retirement Planning
Macquarie University study reveals benefits of guaranteed income in retirement
A new study by Macquarie University's School of Psychological Sciences has found that mental health, enjoyment, and financial security are key benefits of incorporating guaranteed income and annuities ...Read more

Retirement Planning
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today. Read more

Retirement Planning
Majority of Australians anxious about retirement as super knowledge gaps persist, report finds
A new study by Aware Super has revealed that a significant majority of Australians aged 45 and over are feeling anxious about retirement, with nearly nine in ten respondents concerned they will run ...Read more

Retirement Planning
AMP’s MyNorth Lifetime boosts financial security and retirement income
AMP has reported that its MyNorth Lifetime retirement income solution is delivering significant financial benefits to retirees, with an average uplift of 50% in total income. Read more

Retirement Planning
Retirement living sector calls for planning reforms amid declining construction confidence
The Retirement Living Council (RLC) is urging governments to streamline planning systems to boost housing supply, following a decline in confidence in age-friendly construction activity. Read more

Retirement Planning
New laws to boost women's retirement savings through paid parental leave
The Australian Parliament has passed new legislation that will see superannuation guarantee contributions paid on the Commonwealth Government's Paid Parental Leave (PPL) scheme. Read more

Retirement Planning
Planning systems under scrutiny as Australia's ageing population grows
The Retirement Living Council (RLC) has called for governments to address planning system shortfalls in preparation for Australia's ageing population, following the release of new data from the ...Read more

Retirement Planning
Retirement Living Council calls for focus on seniors' housing as population ages
The Retirement Living Council (RLC) has urged governments across Australia to prioritise age-friendly housing solutions in response to new data revealing an ageing population. Read more

Retirement Planning
Macquarie University study reveals benefits of guaranteed income in retirement
A new study by Macquarie University's School of Psychological Sciences has found that mental health, enjoyment, and financial security are key benefits of incorporating guaranteed income and annuities ...Read more

Retirement Planning
Retirement villages offer affordable housing amid market crisis, study finds
Retirement villages are providing a significantly more affordable housing option for older Australians compared to the traditional property market, according to new data released today. Read more