Retirement dilemma already confronting Gens X and Y
Australia’s Generations X and Y may need to adopt more aggressive financial risk strategies if they want to cover the cost of their own comfortable retirements, as well as covering off the social welfare platform for retiring baby boomers.
That is the analysis of national accounting firm, Chan & Naylor, with its partner and head of financial planning David Hasib saying that by not taking a more aggressive approach, Generation X and Ys’ investment portfolios could fall short on having the capital base required to fund the 30 years of post-retirement life that many actuaries see as a near-term likelihood.
He said there existed a genuine risk that the current generation under the age of 40 would not have enough growth assets such as international equities and properties.
“While the Government is laying down the rules and encouraging Australians to seek professional advice, more fiscal education and a less conservative approach to financial market exposure is required to help today’s young pay the way for the future, including their own and potentially caring for elderly parents,” Hasib said.
“To an extent this should be acted on at the level of the individual; however, I also call upon financial planners and accounting firms to show better duty of care in educating their clients,” he said.
AUTHOR
Mike Taylor
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