Church St Finance

DID YOU KNOW?

  • The average Australian’s savings will run dry within 10 YEARS of retiring
  • A whopping 81% of Australians will go BROKE in retirement
  • 40% of Australians are forced into retirement BEFORE they’re financially ready, either through illness, injury or redundancy
  • 95% of people in Australia NEVER become financially free

These are shocking statistics aren’t they?

But sadly, they’re 100% true.

The fact is, the Superannuation system has failed to provide for Australians in their retirement. According to a recent HSBC survey of more than 16,000 people called The Future of Retirement, the average Australian’s savings and investments are on track to run dry within JUST 10 YEARS.

And it gets worse…

Because let’s face it, we’re all living longer, and life expectancies are continuing to increase year on year, which means you could end up needing to provide for yourself financially for 5, 10, or even 20 years more than you originally planned for.

Don’t believe me?
Then check out these stats…

WHY YOUR SUPER WON’T LAST

  • In 1910 Australian men and women lived into their mid-50s
  • In the 1980s, the Super System was designed to fund us into our 70s
  • And by 2010, Australian men and women were living to 85 and 87 respectively

But here’s the thing…

If you are between 40 and 60 years old, you can now expect to live to between 90 and 94.

Yet Australians are retiring at an average age of JUST 67.

But what’s really scary is that more and more people are being forced to retire much, much sooner than that.

A study by retirement consulting firm Mercer revealed that a massive 40% of Australians are forced into retirement early due to redundancy or illness before they’re financially ready, meaning they risk outliving their savings.

SO WHAT DOES ALL THIS MEAN FOR YOU & YOUR RETIREMENT?

Well, get this…

Even if you were to retire completely DEBT FREE today, the Association of Super Funds of Australia (ASFA) says that you’ll require around $60k a year.

Therefore, if your retirement period lasts for JUST 25 YEARS (which is a conservative estimate) you need a MINIMUM $1,500,000 + inflation to fund your retirement (25 x $60,000).

So let me ask you a question…

Where is all this money going to come from?

Superannuation?

Forget it!

According to a recent report by CPA Australia, the body representing the accounting profession, compulsory superannuation “has had a minimal impact on Australians’ capacity to save for a self-funded retirement.”

YOUR SUPERANNUATION JUST ISN’T ENOUGH FOR YOUR RETIREMENT – IN FACT, IT’S NOWHERE NEAR IT

On average, you’ve got 10 years’ worth of funds.

And added to that, have you thought about what you might do if you’re one of the 4 in 10 people who are forced into retirement early?

If you haven’t, you need to start NOW – because the simple truth is, like most Australians today, you’re going to run out of money way before you run out of time on this Earth.

And just think about what that will mean for a second…

  • You won’t be able to afford to stay in your home…
  • You won’t be able to afford to pay for any care…
  • You literally won’t be able to afford any kind of food or shelter.
  • And you will inevitably become a burden to your children, who will be forced to bankroll your supposed ‘Golden Years’.

SO WHAT’S THE SOLUTION?

Well, there’s a “loophole” that will allow you to use your Super as security, which means you CAN invest it in property, fund your retirement, and build true financial freedom!

YES, YOU CAN!

And you can do this even if you’re already retired, unemployed, or in debt.

“But wait a minute”, I hear you say.

“I thought the Government were changing the rules so we can’t use our Superannuation to invest in property anymore?”

Yes, you’re right.

The Super Fund industry has been lobbying the Government to stop people from using THEIR OWN MONEY to invest in property as a way of funding their retirement.

Why?

Because they’ve been happily skimming off $20 BILLION A YEAR in Superannuation ‘management’ fees!

Makes you sick, right? Because that’s YOUR money!!

Oh, and here’s another thing…

Do you know who the SECOND BIGGEST owner of real estate is in Australia?

Yep, you guessed it – THE SUPER FUND INDUSTRY!!

Incredibly, they’re using your money to invest in property and generate massive profits, which is why they’re desperately trying to STOP YOU from doing the same.

And the Government is about to let them.

WHY PROPERTY?

Property is – and always will be – the safest and quickest route to building a sizeable retirement fund, and achieving long-term wealth and financial freedom.

To prove this, take a look at the table below which shows the average house price in Australia for every decade since 1970.

 

  • YEAR

    1970
    1980
    1990
    2000
    2010

 

  • AVERAGE HOUSE PRICE

    $11,800
    $44,800
    $147,000
    $254,000
    $558,000

 

  • % INCREASE

    N/A
    279.66%
    228.12%
    72.79%
    119.69%




As you know, property prices often fluctuate from year to year, but as you can see from the table, over time they only ever go one way – AND THAT’S UP!

And now that we’re starting to come out of the latest global recession, property prices are set to BOOM over the next few years.