Budget $87 Billion required in 2042 - crikey!

From: Nigel W


What are peoples' responses to the budget last night?

Like most I'm still digesting it, but the opinion that by 2042 we'll be $87B in the red due to an aging population etc etc is a bit of a concern I think.

What's the net present value of $87B?

Maybe the "guru's" scare tactic of saying there will be no pension in years to come has a tiny bit of merit?
 
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Reply: 1.1
From: Gail H


Hi,
I really can't imagine there being no pension. Just think of the voting power of all those undersuperannuated baby boomers. Can you really imagine em being left on the streets?

I don't think the pension will ever be enough (hell, it probably wouldn't pay my mobile phone bill), but I believe it will always be there.

G
 
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Reply: 2
From: Felicity W.


I think the pension will become harder and harder to get, but I also think that it will have to continue to exist in some form.
After all, what about the superannuation of women who choose to stay at home and raise children? No employer contributes to those, and most families in that situation certainly aren't ploughing money into the wife's super.
Yes, super is becoming more of a focus in divorce settlements etc, and hopefully one day there will be way to split super in a divorce settlement, rather than forcing one partner to pay out the other for money they can't touch themselves until retirement, but so far that hasn't happened. And splitting super leaves both partners with a lot less obviously.
I wouldn't want to retire right now on my super - a whopping $1500 last time I looked! The costs of being a stay at home mum are not always obvious.
Keep smiling
Felicity :cool:
 
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Reply: 1.1.1
From: Ian Findlay


Hi all,

What may happen with pensions is that the value slowly withers away. By not
index linking the value (unhooking from average wages) and maintaining
eligibility levels at current levels, it will eventually become worthless
Let inflation do its damage.

Ian


----- Original Message -----
From: "propertyforum Listmanager" <listmanager@bne003w.webcentral.com.au>
To: <Recipients of 'propertyforum' suppressed>
Sent: Wednesday, May 15, 2002 12:50 PM
Subject: Budget $87 Billion required in 2042 - crikey!


> From: "Gail H" <gailhubble@telstra.com>
>
> Hi,
> I really can't imagine there being no pension. Just think of the voting
power of all those undersuperannuated baby boomers. Can you really imagine
em being left on the streets?
>
> I don't think the pension will ever be enough (hell, it probably wouldn't
pay my mobile phone bill), but I believe it will always be there.
>
> G
>
>
>
> To reply: mailto:propertyforum.40039@bne003w.webcentral.com.au
> To start a new topic: mailto:propertyforum@bne003w.webcentral.com.au
> To login: http://bne003w.webcentral.com.au:80/~wb013
>
>
 
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Reply: 2.1
From: Alan Hill


Whether there is or isn't a pension at the end of the day isn't of primary importance to me. Even if there is I don't want my family to have to live off it!

I don't think they need to......it's all about taking a bit of responsibility for your future now and planning for it.

If I'm on the pension in 20 years I'll have only one person to blame for it....me!


:)
 
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Reply: 1.1.1.1
From: Always Learning


Well if what you say is true and the pension will be withered away from there current marginal levels, there is going to be a bit of a problem! I cannot see Australian society accepting old people staving on the street or freezing to death in the middle of a Melbourne winter because there is not enough money for food or heating. And god-forbid, in 40 years I will be a old codger.
<p>
So after careful analysis of the lint in my belly button, here is the future for pensioners.
<p>
<ol>
<li> Taxes of regular folk will be increased, maybe their super funds will be "raided" by new government welfare initiatives.
<li> Increased immigration of young people who are prepared work hard, pay the heavy tax burden and then spend what's left to live in "gods country".
<li>
This of course wont be enough, so oldies housing (retiree's, aged care and nursing homes etc)
and medical care for pensioners will be increasingly streamlined.
<li> Streamlining/efficiency gains naturally result in very defined, conveyor belt heath care, large government run aged care facility (of course they wont call it an "institution") out in the middle of nowhere, like Bacchas Marsh or worse still KooWeeRup.
<li>Basically if you are on the pension you will be at the mercy of a system that will rob you of choices and lock you into system in which you will have food/shelter and basic medical but without the ability to make basic life style decisions.
</ol>
<p>
Of course you can hope your children will take care of you! Or accept the responsibility now to take care of your future self! Which since you are reading this you probably fully planning to do!
 
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