A new research firm says there is more than enough money in the world to pay everyone to retire.
The research firm, Credit Suisse Global Wealth Management, has released the first comprehensive analysis of the wealth of Australians.
The results show there is no way around it, there is a need to take action.
“There are some Australians who can retire at 65 and I think that is a reasonable conclusion,” says Credit Suisealth’s chief economist, Paul Pinder.
“I think it’s a very good thing to have some savings, it’s not a great thing to be forced to sell assets that are in a stable financial position.”
Pinder says Australians have a lot of savings, but there are a lot more people with a lot less.
“You have a higher proportion of Australians in their 40s, 50s, 60s, that are at risk of having a large pension or an asset that they can’t sell,” he says.
“But the real challenge is the younger generation.”
The findings show there are people in their early 40s and 50s that have the resources to retire in a reasonably safe way, but the reality is that people are getting older.
“I think there’s more people than we would like to think,” he adds.
“We’re looking at about 25 per cent of people in the 20-to-34 age bracket, which is a huge proportion of the population.”
What we have is people with less money than they thought they would have, but they can make that up in a very safe way.
“Mr Pinder says he is not surprised by the results.”
The numbers just seem to be getting bigger and bigger,” he said.”
It’s a matter of just making sure that people have the appropriate resources to have retirement and make sure that the financial stability is there.
“If you think about people at 65, there are plenty of people that can retire in relatively safe ways, but we’ve seen a huge surge in the older age group.”
The latest research is based on Credit Suisa’s Wealth and Income Survey.
The research company has used the same methodology for the last decade.
It is not just the older generation that has an interest in retirement, the younger ones are keen to stay involved in the economy and the economy is keen to keep its people in jobs.
“They’re interested in working in the industry they love and they’re interested to be part of the economy,” Mr Pinder said.
The new research shows that the majority of Australians want to stay employed and would like the economy to be better off in the long run.
“In the past decade, we’ve been in a period of significant economic growth and the unemployment rate has been dropping,” he explained.
“So a lot is looking up for the labour market and the overall economy.”
People are feeling very confident about the future of the country.
“Topics:economics-and-finance,business-economics,government-and.goals,work,workplace,industry,business,jobs,employment,australiaFirst posted May 20, 2018 17:31:21Contact Emily JonesMore stories from Western Australia