The Hidden Cost of Delayed Retirement
Increasing the Age Pension eligibility age in Australia has unintended consequences on family formation and fertility rates. Grandparents, who play a crucial role in providing informal childcare, are less available due to extended working years. This shift impacts younger generations’ decisions to have more children, exacerbating Australia’s fertility dilemma.
Balancing Reform and Resilience
Australia’s evolving political values and fiscal discipline significantly influence wealth creation and economic resilience. Reducing government spending is essential to control inflation and maintain stable interest rates, benefiting long-term investment returns. Emphasising traditional values like thrift and personal responsibility can enhance economic stability and individual wealth-building.
Buffett’s Farewell and the Future of US Exceptionalism
Warren Buffett’s retirement marks a pivotal moment for US economic exceptionalism, raising questions about future market dynamics. Technological innovation, energy independence, and demographic strength continue to drive US growth, despite global headwinds. Investors should diversify portfolios to mitigate risks associated with high valuations and geopolitical uncertainties.
Q & A
- I heard that some people are using their super to hold insurance. Should I consider that, and are there any downsides?
- My friend mentioned something about the Work Test for super contributions. I’m still working part-time at 68, do I need to worry about this?
- I’ve heard the term annuity mentioned when talking about retirement income. What exactly is an annuity, and how does it work?
