It's getting serious now.
The trade unions are going to jump in and chuck an almighty fit about the extension of the retirement age from 65 to 67.
Their argument is… “You can't expect people to be using their hands and bodies in any physical capacity when they're 65+”
Now, you might not be concerned about the retirement age because it may be a long way away for you, or it may be the most pressing issue in your life in the next 5-10 years.
Regardless of that, what's amusing with the whole extension of retirement plan that came out in the budget is that it's focussed purely on age.
Why is this important?
Well it's a bit of a test as to whether you have a wealth mindset or a welfare mindset.
If you're reading this, I'm assuming you have a wealth mindset, but let's see.
Retirement for the wealthy is not a function of age, but a function of money.
This is what the poor and middle class don't get… and hopefully, you as a subscriber to my way of thinking does get.
It's a ridiculous thought for me to simply wait until a certain age to retire. That's how the poor think.
The wealthy take control, put things in to place, understand that it's about creating assets and passive income and retire a lot earlier than 65.
Here's a question for you…
Did the extension of the retirement age worry you or upset you?
If it did, you're thinking like the poor (Sorry).
If you laughed at it like me, you're on the right track. You're thinking like the rich do even though you may not be in a position to retire right now.
Funnily enough, when the retirement age was set at 65, it was almost 70 years ago and the reality was not a lot of people lived very far past 65 years of age.
The government never thought they'd have to pay out.
Now that they do, the government is constantly changing the goal post because it has very little option.
It's an admission of guilt that the system for the majority isn't working and there's not much that they can do about it.
One thing for sure is that you haven't heard the last about this particular issue… I've heard from some people that they'll extend the retirement age even further to 70 years of age.
Imagine being 69 years old and on the dole (ouch).
Solution?
My suggestion is don't let the government dictate when you retire, don't fall into the trap of being in the poor or middle class – stand outside the circle and take matters into your own hands.
Simply by reading this I may have shifted your paradigm already.
…Retirement is about passive income. Period.
The question for you now is, how much passive income do you have, and how much do you need to be in a position where you can honestly say that you could retire comfortably?
Then your seminar of life begins.
What's the seminar of life?
That's the reality of what you do every day to make things happen? It's the only seminar that matters and it's the one that you'll get the best return on.
Problem is, most people are going to the same seminar over an dover again and learning nothing in the process. Don't let that happen to you.
So off you go, get busy. Build assets and wealth now so that you can retire on your own terms.
So I'd like to leave you on what a famous intergalactic philosopher once said…
Live long and prosper.
Jon Giaan
Knowledge Source
P.S. You want to comment? Tell me what you think. Happy to read your thoughts below.
Brenton says
Hi Jon,
Great article, thanks for your insight.
It’s funny to think people are actually worrying about this increase in age to claim their retirment. Instead of spending their time and effort worrying about it, why not start a business or venture part-time which will replace their superannuation.
Have they not realised that the 40 year plan (now becoming the 45-50 year plan!) doesn’t work?
Keep up the great work.
Brent
Terry says
Well done Jon,
it seems to me that it is the same mindset as the people who get up in the morning and look out at the weather – if it sunny they will have a good day; if it is raining then they have a bad day. You can be proactive in your life or you can accept what life gives you. I prefer the latter.
I am already retired (did it at 55) but I intend to “Live Long and Prosper”.
Terry
Chris says
Nice one Spock, very profound…..
Lis says
I think its bizarre this disconnect between the age you can draw down on your retirement savings (at 55) and the actual pension at 65 or 67 – why the difference? It should all be 67 as far as I can see. Also the pension is hardly the dole – the figures mentioned on the news is about double the income for a pensioner than someone on the dole and yet the pensioner should at least own a home , the younger person doesn’t.
The real point is that you shouldn’t be relying on the government or tax breaks to pay for lifestyle – and why would you want to wait until you are old to enjoy life anyway?
Wayne K Gibson says
Personally I could care less what the government does for the masses, except when it is something I can get some advanage from, like the new 50% small business allowance. This will help me improve my position & it isn;t very often middle class australians get much from the govt, hense my indifference.
After all the government is really just an umpire for the masses, trying to make it fair for all, really good players will always stand out in the crowd.
I have never put much stock in supperannuation as private investment will generally give you a better result.
Allen says
Hello
I’m 58, I went to see a financial advisor 18 months ago who said “sell all your assets and put the money into the stock market”. I didn’t. Yes, I am happy I didn’t.
Now I’m 59 and looking forward. I have three investment properties but bugger all else. I own about 35% of each property. Now, I’m going to sit back and wait for the property market to rise, then I’ll begin to cash in. I cannot afford to make a mistake. I do not have a big enough time window to recoup my losses this time.
Health is OK but not as good as some my age. So I’ll sit and wait. I think that property will be a good investment for the next five years. I won’t buy any more property but maybe a few shares.
I’m hoping that sees me through. Being 59 still means I can still retire at 65 and claim a pension; or retire totally self funded before that time.. I don’t want any money, just the benefits cards.
Thats my future – but if I had put all my money into shares – I would have been very worried and quite pessimistic.
Jon, I enjoy your encouragement and your optimistic emails.
Best Regards
Allen
PS. I asked the financial advisor for a refund —— I’m still waiting !!
Terry says
G’day Jon,
did you pick up on my mistake?
There is no way I accept what life gives me – I prefer to make my life.
The best way to predict your future is to create it.
Make it a great day.
Terry
Michael says
Hi Jon, thanks for sharing this great article.
Well here we go again, the government is trying to dictate to us again.
Every time the government coughs and sneezes we catch a cold.
It’s time to protect ourselves, protect our wellbeing, protect the future
of our families!
So what are you going to do about it? Are you going to lie down and take it,
or are you going to stand up and be counted?
Solution: Run your own business and create your own wealth.
Make a difference in your life and enrich other people’s lives by employing them
into your new business venture. By doing this, you dictate your own terms and create wealth for you, your family and the community.
Don’t get caught up in the government’s failed policies. Make your own policy.
You can dictate you own retirement age, you can dictate how much wealth you
want. Just find the tools to make it happen. You owe it to yourself.
Kind Regards,
Michael
JIm says
G’day Jon,
You covered one aspect of this well, there are other parts to the jigsaw though.
One of the other pieces is health and this is also something we should take control of as much as possible. Mental health in particular is going to be a big issue as the population ages with things like Alzheimers which usually only begins to show after we reach 60.
There are indications now that the best way to remain healthy is ‘the use it or lose it’ approach. This is pretty obvious with physical fitness, but it seems it also applies to mental health as well. And with the mental aspect it’s not enough to just keep doing the same things, even if they are reasonably complex activities.
Indications are that new activities which force new learning is important to keep the grey matter functioning.
So I see this as another compelling reason for not having a welfare mindset, or even a passive income mindset. Generally we are best in the face of challenge,
not relaxing in our comfort zone. We should be looking for change as we age, not settling back into some sort of ‘retirement’.
In my case, I sold a business I’d run successfully for 30 odd years and bought a computer – didn’t even know how to plug it in , let alone what it was for. It’s taken a while, but now I have a growing online income in an ever changing media which provides plenty of challenge. The only catch is that it’s easy to spent too much time sitting in front of a screen, so I have to watch the physical exercise.
tony says
Hi Jon, I’ve only got 10 years to go , sorry 12 years and i can retire on the pension and play scrabble all day because I can’t afford to put petrol in the car, or put tyres on the old antique for that matter.
Well thats my parents, if I can’t create passive income in that time better I dig my grave now I have no intention of waiting for the government to drop me some crumbs of the table if they so choose by then.
cheers tony
Shirley V. Livesey says
Why shouldn’t the Unions declare war on the age increase for age pension eligibility.
This does not affect me by the way, as I retired at 48 and I am now 75 going on 76 but I live in an area and visit a Doctor, Acupunture Practitioner where the largest majority of the patients are Senior Cits or close to it.
I see the strain of fatigue in their faces and many times the pain of injuries that do not qualify them for retirement pensions.
Government Superanuation gone down the gurgler, whilst Mp’s vote themselves another huge pay rise and more benefits.
Consider also that the people most likely to require Government pensions are those that have had in all probability the bare minimum education , and work in the most menial or back breaking employment, and have paid taxes since they were probably 14 years of age or less.
Paid maternity leave and monetary benefits for familes that decide to procreate anyway whilst Grandad digs the last shovel of dirt , that will put him in his grave is not my idea of fair play either.
I was born in 1933, in the great depression and just in time for the Second World war and spent my early childhood in England in “The Institution” a fancy name for “The Workhouse” , so I have seen several ” Recession – Depression ” times and it was always the poorest who suffered most and class distinction was just one of those things.
Now before we go any further consider first that the majority of the peole we who are in the retirement age increase group today are from groups who had no chance at further education, and who went out to work at 14 years of age or younger, most of them are not computer savvy.
Lets face it most of them would not know how to manage a microwave;
I am not saying they are stupid or deficient in any way but they never had chance .
A key board is not something they are able to use with any speed or success , Typists were a few classes up from them when they left school.
Sorry if I get sound heated perhaps I am but I remember the ” Dig for Victory” days and the dazed taxi drivers and shop keepers of the 70s stock market dive.
I remember living in a house with stone floors, one cold water tap in the house and no electricity, I remember standing in line in the snow for, 4 oranges and a hand of banana’s when I was ten years of age.
I am Angry really angry and this hit below the belt at a group of people who cannot fight back and who will probably lose their jobs anyway with this “RECESSION” and how in heavens name does anyody expect these people to tramp from place to place looking for another job when they are on the dole.
I say ” SHAME , SHAME, SHAME bloody SHAME”
Shirley V.
The Old Gal from Down Under
Gary says
John
Would you give it a rest already! Every time you find something in the media that you can use for fear mongering you send out useless broadcasts to the list. How about taking more than 10 minutes of your time for once to write something that is of actual benefit rather than just hype and superlatives? Maybe what I’ve said today will shift YOUR paradigm… just a bit of feedback from someone that expects more than sales hype in his newsletters from so called coaches and experts.
Sanjay says
Agree with you there John. I could complain that I’ll have to work for 2 more years, delusional in the fact that when I retire the government will look after me, OR I could use the 32 years between then and now and build a few more assets. A couple of houses over 32 years wont be too hard for me to do and will pay a hell of lot more than the pension.
As for Gary’s comment: Mate, go home. That email was the opposite of “fear mongering” and motivated me (and hopefully others) to get off my bum and expect a better future. You pay nothing to get these emails and you still complain about them – I bet I know what your answer to the above question was.
Peter Allard says
Hi Jon,
received this tongue in cheek comment today; at 73 and forging ahead under the nom de plume Rokky888MoneyMagnet I’m excited by my prospects for 2009!
Article as follows;
BUDGETING FOR DUMMIES
From: “Narrell Brown”
Dear Mr. Swan,
Please find below my suggestion for fixing Australia’s economy:
Instead of giving billions of dollars to banks that will squander the money on lavish parties and unearned bonuses, use the following plan. You can call it the Patriotic Retirement Plan:
There are about 10? million people over 50 in the work force. – Pay them $1 million apiece severance for early retirement with the following stipulations:
1) They MUST retire. Ten million job openings – Unemployment fixed.
2) They MUST buy a new Australian CAR. Ten million cars ordered – Auto Industry fixed.
3) They MUST either buy a house or pay off their mortgage – Housing Crisis fixed.
4) They must send their kids or grandchildren to school/college/university – Crime rate fixed.
5) Buy average levels of alcohol / tobacco a week, so there’s your money back in duty / tax etc
It can’t get any easier than that!
P.S. If more money is needed, have all members of parliament pay back their falsely claimed expenses and allowances.
If you think this would work, please forward to everyone you know. If not, please disregard.
filippo arcidiacono says
Hi Jon.
You hit the nail on the head. I have seen the government over many years losing control and passing the bill to the masses but giving poor quality service.
Now how about we as wealth minded people do the same for our cleints but take responsibility for people and teach them correctly and give the best service on the planet so we are unsackable.
Tony says
I don’t get it! I turn 67 tomorrow and I have no intention of retiring for at least 20 years.
I’m making more money, easier, and having more fun than I’ve had since the 80’s.
What happened to the lucky country where you just got on and did it and bugger the rest? There’s a lot of diggers residing in Europe who gave more than just their right one to ensure you all had the freedom to pursue a life of liberty, productivity and happiness.
Just get on and do it; and put the wingers back on their boat. Who needs a government to tell you when you can and can’t retire? Who needs a bloody government to tell you anything??
helena says
Hi Jon,
l think that the raise in the retirement is a good thing. 67 is not old, and its good to keep active both mentally and physically . Its a problem at any age if you do not like what you do and work is a negative for you.
Do what you love, its not about money or age.
Helena.
Bonny says
‘Imagine being 69 years old and on the dole (ouch).”
I hope there is a dole when I’m 65 but the way the greed of the world is going I have my doubts. We have a government who is currently spending so much money that our kids future is at stake. The waste of money going to schools and elsewhere astounds me.
We have people doing things which I consider to be unethical out of the sheer greed of money. Thank goodness my local MP has put through a bill to stop people buying houses from the desperate for less than market price.
Do yourself a favour – put yourself in the other person’s shoes before you do business with them.