Are you expecting to rely on the pension when you stop working?
Well I have some bad news for you!
According to the OECD’s “Pension at a Glance 2015” report, you probably in for a shock when you stop working.
The OECD’s “Pension at a Glance 2015” report found that over 33% of Australians aged 65 and older, are living in poverty. The OECD’s measure of poverty is incomes less than 50% of median household disposable income.
This compares with 14% of the total Australian population living in poverty. This means if you are 65 or older, you are nearly 2 and a half times more likely to be living in poverty than the rest of Australia.
What is worse that Australian’s percentage of over 33% is the second highest in the 34 countries included in the report. Only Korea has a higher percentage and there are only four other countries with a percentage higher than 20% (see below table).
This report backs up my view that most Australians work hard all their life, just to retire poor. Heading straight for what I call the Poverty Trap.
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Find out why you are on the treadmill to work hard and retire poor. Are you heading straight for the Poverty Trap?
Then see some of the most important things you can do to Avoid the Poverty Trap.
Do you and your family a favour and start taking steps so you can avoid the poverty trap.
Wayne Wanders
The Wealth Navigator
wayne@avoidthepovertytrap.com.au