Category: lifestyle

Planning for retirement

Super in the time of pandemic

Is our retirement system good enough? Superannuation should enable all people to have an adequate standard of living when retired, according to the Retirement Income Review into the Australian retirement system. The system should not just provide a means for wealthy people to become wealthier, with the help of generous tax concessions.

The Review found that two groups have high levels of financial stress compared to people below age 65: those renting in retirement and those who are involuntarily retired before age pension eligibility age. Retirees who rent in the private rental market are likely to live in poverty and those early retirees living on JobSeeker payments are the worst affected. Even with the age pension and additional rental assistance, these retirees experienced higher levels of financial stress and poverty than the rest of the population.

Following 426 submissions and meetings with 100 stakeholders, Treasury has released the Review’s Final Report which makes findings on how the superannuation system interacts with the age pension, the aged care system and the tax concessions that benefit high wealth individuals.

The COVID-19 pandemic has been incredibly disruptive to the livelihoods of individuals and to businesses on a global scale. Less obviously, most people’s retirement savings also have decreased significantly over the past year. Retirees who rely on their super to top up age pension payments remain concerned that their super investments have been affected by market volatility, leading them to worry that their loss in savings will have long-term effects.

Retirement savings and owning your own home are the most important ways to ensure that people have a buffer in retirement. High rates of home ownership in Australia reduces housing costs in retirement and boosts living standards. Additionally, their home is an asset that they can sell to provide a deposit for aged care or for additional funds if necessary.

While the age pension helps to offset inequities in retirement, its “bare bones” level of income does not provide enough to provide for those without other income. In particular, it does little to improve the situation of disadvantaged groups such as women, Aboriginal and Torres Strait Islander people and those with disabilities who have not been able to accumulate sufficient retirement savings in their working life.

One of Treasury’s first observations was that the current retirement system is complex and poorly understood by many people, both before and during retirement. Then more complications arise when it interacts with the aged care and tax system.

The Report suggested some changes to the retirement system to improve its fairness such as:
• removing the $450 per month income threshold before the superannuation guarantee can be paid;
• paying superannuation while on employer paid parental leave, and
• ensuring that all employees are paid the benefits to which they are entitled.

Australian superannuation funds hold $2.9 trillion of assets invested in local and overseas financial markets. As a result of the Covid-19 pandemic shutdowns of businesses and associated job losses, superannuation proved a welcome financial resource for many who had lost their employment. Over 4 million applicants were able to access their super under the Early Release scheme to supplement their wages or JobSeeker allowances. In total $37.4 billion was paid out in the June 2020 quarter to applicants, a 77.7% increase from the March 2020 quarter.

Many commentators were concerned that low to middle income earners who accessed their super early would be severely disadvantaged in being able to accumulate sufficient funds for their retirement as well as making them more likely to be reliant on the age pension. The debate about allowing people to access their super to fund a deposit for a house has not been resolved with arguments on both sides. In my opinion, too many people have drawn on their super in ways that provided only a temporary benefit now, while suffering a substantial long-term loss to their level of super when they retire.

I look forward to the government’s response – will they improve the system for the most disadvantaged people in the retirement system? Much more needs to be done.

Treasury, 20/11/20, Retirement Income Review – Final Report, https://treasury.gov.au/publication/p2020-100554

Author talk at Dennis Johnson Library Stanhope Gardens

Come along to join in the retirement conversation on

Join Alice and have a retirement conversation.
Saturday, 24 October 2020 at 1:30 pm – 3:00 pm.
At the Dennis Johnson Library, Cnr Stanhope Parkway & Sentry Drive, Stanhope Gardens, NSW 2768

Women experience retirement differently to men. Women generally live longer, have less money and volunteer more than their male counterparts. A practicing lawyer for over 30 years, Alice Mantel encourages making better decisions, giving advice on topics such as:

Inspiring women to make the most of their retirement opportunities, Every Woman’s Guide to Retirement encourages an active, connected lifestyle, staying healthy, lifelong learning, de-cluttering, and even online dating to make the most of this time.

Life during Covid-19 – early findings

After conducting a survey of over 7,000 respondents, the Australian Institute of Family Studies has released its early findings as to how people felt their lives had been affected by the Covid-19 pandemic restrictions.

Given that about 80% of the respondents were female with a higher educational level than the general population, it may not be completely representative but some significant trends do emerge.

Chief findings were:
 Women continued to do most of the housework as they did before the pandemic.
 The mother continued to do most of the childcare/schooling as they did before the pandemic.
 Almost half (43%) of respondents reported they or their partner had lost employment, reduced hours or wages. However 65% reported no real
change to their personal income.
 Grandparents were not able to support the families or provide childcare as before.
 Parent-only care rose from 30% before COVID-19 to 64% of families during the restrictions.
 The proportion of people always working from home rose from 7% to 60% during the restrictions.
 Young adults were disproportionately impacted by the economic downturn, being almost four times (15% vs 4%) more likely to ask for help from
government or NGOs.

Families in Australia Survey: Life during COVID-19, Report no. 1: Early findings, https://aifs.gov.au/publications/families-australia-survey-life-during-covid-19

Telehealth use increases during pandemic

In the wake of the COVID-19 pandemic there has been a rapid take up of telehealth. Telehealth can according be described as the delivery of any health service, remotely, usually over the phone or via video call. A service could include an online counselling session, a phone call with a general practitioner, or a video chat with a physiotherapist or allied health professional.

According to the Australian Bureau of Statistics, one in six adults aged 18 years and over (17%) used a telehealth service during early-April to early-May 2020, when the pandemic restrictions on social distancing were at their strictest.

Research by the Global Centre for Modern Ageing found that older Australians liked telehealth for its convenience, reduced travel and ability to be conducted at home. Improvements they suggested include making telehealth more available, improving tech, and providing more information around the end-to-end process, including scripts, follow-ups and referrals.

Loneliness was the most widely reported source of personal stress for Australians during April, according to the third ABS Household Impacts of COVID-19 Survey.

“Around one in five people (19 per cent) also reported that they were experiencing difficulties maintaining a healthy lifestyle, which was more of a problem for those aged 18 to 64 years (22 per cent) than those aged 65 years and over (9 per cent),” added Ms Marquardt, ABS Program Manager for Household Surveys.

Before the coronavirus pandemic, telehealth was most commonly used to make it easier for people in remote communities to access expert healthcare. However since the coronavirus pandemic, government policy has encouraged telehealth availability with the added benefit that the service can be bulk-billed.

Global Centre for Modern Ageing research, https://static1.squarespace.com/static/5ae17ed32971146319f879ca/t/5eeebc167250ac3a2ce07f1d/1592704027892/Telehealth+Here+to+Stay+GCMA+research+report.pdf

Isolate and thrive

By Alice Mantel

In this uncertain period, we may have increased the physical distance between each other but we can still be socially connected. It might just require more motivation (and self-discipline to use the words of one very important person).

Here are my suggestions about how to make the most of this enforced retreat from the busy world:

Daily rituals – find a special way to welcome the morning, or the approaching night, perhaps just by paying attention in silent stillness.

Enjoy the solitude – doing things that you like, You could read a book (including downloading a digital version from your library), listen to podcasts, play loud music, take up an instrument you have ignored for a while, flip through photo albums or dance while no one is watching. You could even write your memoirs.

Connect with others – call friends and contacts, by phone or with video calls, or celebrate your special days by hosting an online party. Do a jigsaw puzzle with a family member. Call Lifeline on 13 11 14 if you don’t feel in control of your mental stress or anxiety.

Share – your recipes, your patterns, your ideas – through a curated social media diet or a blog your own thoughts. Use digital media to stay informed.

Create something new – take up painting, sewing, pottery making, knitting again. Find a live streamed class to join. Cook new meals or cakes that you have always wanted to try.

Develop your sense of purpose – reach out and support your neighbours, your school, or disadvantaged groups by volunteering, donating money or following their media posts.

Revise and re-evaluate the obvious – what is in your cupboards, your bookshelves, your kitchen pantry, or your bottom drawers?

Stay active – participate in online classes like yoga or dance classes, walk/run in the fresh air in local parks, breathe deeply on your balcony, set up a home gym using items found around your home, or take up golf or tennis.

Care for yourself – catch up on some sleep, rationalise your old clothes, give yourself an organic facial, throw out old makeup, dress to impress yourself.

Go gardening – pruning, weeding, planting, reorganising your pot plants, buying more plants, mulch and fertilise.

Avoid– non-essential online shopping, too much couch time watching streamed movie marathons, and drinking more alcohol to pass the time.

In conversation in Albury

Introducing Every Woman’s Guide to Retirement

Sally Denshire and Alice Mantel in conversation in Albury LibraryMuseum
to Albury women was Dr Sally Denshire, a former CSU academic and Albury resident. Sally and Alice discussed how women’s approach to retirement was different to the usual male perspective. A case of “men retire, while women go on cooking”. Most of the 23 attendees were professional women who were concerned about organising their housing to be the most convenient and cost-effective for their later years. And – as could be expected – some were really looking forward to retirement while others wanted to delay it for as long as possible!