How is your Financial Health?
How is your health?
When we think of health we often think about the health of the body and mind.
What about your financial health? How is your financial health?
As a result of all the attention that we are paying to our physical health, the good news is that in Australia we are living longer. As of 2014, we are one of only six countries in the world with a life expectancy over 80 for both males and females. (The other countries are Japan, Italy, Switzerland, Iceland, Israel and Sweden). According to recent ABS statistics, the average life expectancy has increased from 78.1 for males in 2004, to 80.3 in 2014; and from 83.0 for females in 2004, to 84.4 in 2014.
The downside is that in order to be able to enjoy a quality of life, we need to increase our financial resources, so we can live up to the increase in life expectancy.
According to a recent Sydney Morning Herald article, Australia has quite a high cost of living compared to other OECD (Organisation for Economic Co-operation and Development) countries. And you thought that you were just imagining the high cost of living!
Australia’s aged pensioners are second worse off (behind South Korea) out of all the OECD countries, with 36% of aged pensioners living below the poverty line. The average for all the OECD countries is 12.6%.
Compulsory Superannuation contributions were introduced in 1992, which means that a large portion of today’s aged pensioners would have benefited from this scheme. The scheme was introduced as a way of increasing financial resources for retirees and yet, we still have a high portion of the aged living below the poverty line.
Are you taking responsibility for your financial future or are you going to rely on social security payments for your golden years? In the U.S, social security payments are tipped to be exhausted by 2033. How will Australia’s social securities coffers be looking in 2033?
Either way, it is wise to lay the groundwork now, as wealth creation and investment is best viewed as a long term strategy.
Will your golden years be a time of enjoyment or a time of stress?
The time to lay the groundwork is now.
Contact me to discuss how a review of your mortgage can be used as a part of your wealth creation strategy. You might be in a better position than you think to improve your wealth NOW!