238. The Next Generation Won't Retire Like Their Parents

Let's unpack that because it's quite interesting, right? And it's going to be interesting to see where this conversation goes because the younger the generation, the longer superannuation is being around for, and that's the predominant vehicle that the government's encouraging for people to save up for their own retirement.

I mean, where do we start with this? How do we justify that headline? What does it look like? Justify the headline because we can call it whatever the hell it was.

No, it's because you chose the title of this, Andrew, so I'm throwing it over to you.

So look...

What we're seeing in reality is that the traditional, you know, you make it till 65, you get your gold wash from work because you've been there for 30 years and you retire and you have paid off your mortgage at that stage.

You don't have any other assets, maybe a little bit of money in the bank and you retire on age pension.

That was the way that retirement used to happen for a very, very long period of time.

And It's not like that anymore.

It's not even close to like that.

And I think that it's for a variety of reasons.

And some are good, some are positive, some are not so good, some are just different.

And it has shifted the landscape.

It's shifted the goalposts.

And for a lot of people, when you're talking about financial plans and retirement, they're thinking about it in the traditional way.

But in reality, it's not happening like that.

And just to throw, and we'll go into some of the details of it, but cost of living into the BICs.

And then the fact that cost of living has increased more than what your age pension amount has.

You throw into the BICs that people have superannuation.

You throw into the BICs that there's retirement that doesn't necessarily happen at 65 and people start working part-time at the lead up to retirement.

People also, some people just don't retire.

And for some people, it's, I am more than happy consulting and doing one day a week or working on a passion project or doing something that sits on the side and drawing a flexible income stream as opposed to define the amount that I'm going to get from aid pension.

It has created a greater amount of freedom, choice, and flexibility, but also at the same time, it's also created a greater level of uncertainty that has also come with it for people.

Let's unpack that because it's quite interesting, right? And it's going to be interesting to see where this conversation goes because the younger the generation, the longer superannuation is being around for, and that's the predominant vehicle that the government's encouraging for people to save up for their own retirement.

I mean, where do we start with this? How do we justify that headline? What does it look like? Justify the headline because we can call it whatever the hell it was.

No, it's because you chose the title of this, Andrew, so I'm throwing it over to you.

So look...

What we're seeing in reality is that the traditional, you know, you make it till 65, you get your gold wash from work because you've been there for 30 years and you retire and you have paid off your mortgage at that stage.

You don't have any other assets, maybe a little bit of money in the bank and you retire on age pension.

That was the way that retirement used to happen for a very, very long period of time.

And It's not like that anymore.

It's not even close to like that.

And I think that it's for a variety of reasons.

And some are good, some are positive, some are not so good, some are just different.

And it has shifted the landscape.

It's shifted the goalposts.

And for a lot of people, when you're talking about financial plans and retirement, they're thinking about it in the traditional way.

But in reality, it's not happening like that.

And just to throw, and we'll go into some of the details of it, but cost of living into the BICs.

And then the fact that cost of living has increased more than what your age pension amount has.

You throw into the BICs that people have superannuation.

You throw into the BICs that there's retirement that doesn't necessarily happen at 65 and people start working part-time at the lead up to retirement.

People also, some people just don't retire.

And for some people, it's, I am more than happy consulting and doing one day a week or working on a passion project or doing something that sits on the side and drawing a flexible income stream as opposed to define the amount that I'm going to get from aid pension.

It has created a greater amount of freedom, choice, and flexibility, but also at the same time, it's also created a greater level of uncertainty that has also come with it for people.