Retirement
‘Sad and disgraceful’ age pension reliance should be addressed at school
Retirement
‘Sad and disgraceful’ age pension reliance should be addressed at school
Australians’ reliance on the age pension is an indictment of financial literacy levels and requires significant change in the education system, an investment service has said.
‘Sad and disgraceful’ age pension reliance should be addressed at school
Australians’ reliance on the age pension is an indictment of financial literacy levels and requires significant change in the education system, an investment service has said.

Propertyology managing director Simon Pressley has issued a strongly-worded condemnation of Australia’s education system, arguing that Australians’ dependence on the age pension comes down to poor levels of financial literacy, which has manifested thanks to poor financial education.
His comments come as the federal government announces a new financial literacy body, which will provide grants to appropriate groups in a bid to boost Australians’ financial capabilities.
Speaking to Nest Egg sister site Smart Property Investment, Mr Pressley said, “We don't need to create a department for [financial literacy], the department is already there. It's called the education department.
“Put whatever amount of money they're budgeting for financial literacy … and whatever other resources into the education system and hold them accountable, make them show each year what they did with their money.”

He said children should be learning about budgeting, compounding interest, basic investment principles like the importance of time in the market and superannuation.
Mr Pressley argued that someone who can work for 45 years without saving enough for retirement should be considered a “financial failure”, but when it’s a society-wide problem, it goes beyond the individual.
“We've got a population of 25 million people and most end up in the same situation,” he said.
According to the Actuaries Institute’s Michael Rice, 39 per cent of retired Australians receive a full pension, while 24 per cent receive a part pension. According to Mr Pressley’s analysis, that’s closer to 82 per cent.
“There's always going to be a need for the age pension, but when you've got 82 per cent of the population reliant on it … we can’t say 82 per cent of people aren't smart, or they don't work hard enoughc
“It's just that we haven't been taught to prioritise things properly, and the importance of not doing that … pisses me off.”
Mr Pressley stressed that this wasn’t a criticism of pensioners, but rather of a society that allowed financial illiteracy to flourish.
“We've created this society where most people are financially illiterate, it's just that few people want to admit it,” he said.
“Anyone around us is equally illiterate, so we probably don't see ourselves as doing badly, because we're compared to [people] equally bad with money.”
Imagine what we could do with the money
Stronger financial education and subsequent reduced pressure on the age pension would see billions of dollars freed up for public spending, Mr Pressley argued.
The Actuaries Institute priced the annual cost of the age pension to be 44.47 billion in 2017. Mr Pressley argued it could soon hit $50 billion and suggested even a small sliver of money saved would mean improved hospitals, roads and other infrastructure.
“The bigger picture is not just how much we're paying on age pensions each ... It's: 'What else can we do with all of that money?'” he said.
“It's not that the governments don't want to fund more public transport or don't agree that it's important, it's not that they disagree that our health system is buggered and we don't have enough hospital beds and that sort of stuff, they've got no money!
“The money is already there, but it's just going places that have no choice because we don't teach financial literacy.”

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