65 used to be "old" when life expectancy was about 75.  Nowadays, people are living into their 90's. How do you expect to survive for 30 years on the Age Pension of $250 a week? No holidays, just drudge and sausages and mash for eons.  

A couple of things to consider?

First, the insurance industry has shown the linkage between earlier retirement and living longer.

Basically, the earlier one retires, the longer you live.

The longer you leave reirement, the earlier you die!

From memory, the figures were those who retired at 55, lived on average to around 85, whereas those who worked until 65 or longer, were lucky to make it to 70.

Second, there will be many who will find they are unable to retire, early or at all, particularly following the return of the GFC and substantial declines in wealth, due to plummeting share & housing prices.

Whilst we (in OZ) have so far avoided the worst of the GFC, that situation will change during the next 12 months, starting probably around this October.

That said, many in other parts of the world, in particular the USA & Europe, are already find things tough and the resumption of falling share prices & housing prices, will literally rule out retirement altogether, for many in the USA & Europe.

We, in Australia, are about to find out what many overseas have already experienced and whether it is Labor or Liberal that win this weekend, they will not be able to change the basic direction of Global ( & OZ) Economics, but they may be able to make a difference, at the margins.

This time IS DIFFERENT!

I guarantee we will see changes, but we may not like them?

gizmo_2655 wrote on Aug 19^th, 2010 at 9:28pm:


If share markets & housing both decline by 50%, how many people will have sufficient funds to retire, at 55 or 65 or 75?

perceptions_now wrote on Aug 19^th, 2010 at 11:09pm:


Well since all most all super funds invest in the mining industry, which has been in 'boom' conditions for the last 10 years at least, and since by law all employers have to contribute to employees superannuation schemes.....
basically anyone who signed up for the superannunation scheme when they started their job (which has been part of the employee paperwork at the last 5 jobs I had) should have enough money in their various super funds to manage to live comfortable for  7-12 years after retirement....