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Monty Python star's candid financial admission

<p>Monty Python star Eric Idle has made a candid admission about the state of his finances, revealing why he still has to work at the age of 80. </p> <p>The comic legend admitted he receives only a fraction of the millions the Python team have made in the past because the finances are a “disaster”.</p> <p>In messages on X, formerly Twitter, Idle wrote: “I don’t know why people always assume we’re loaded”.</p> <p>“I have to work for my living. I never dreamed that at this age the income streams would tail off so disastrously."</p> <p>“I have been working and earning for Pythons since 1995. And now no more.”</p> <p>Idle also took aim at TV lawyer Holly Gilliam, the daughter of fellow Python member Terry Gilliam, who took over the Python brand in 2013 as part of HDG Projects Ltd. </p> <p>He said, “I guess if you put a Gilliam child in as your manager you should not be so surprised”.</p> <p>“One Gilliam is bad enough. Two can take out any company.”</p> <p>Daughter Lily Idle backed him, writing online, “I’m so proud of my dad for finally finally finally starting to share the truth.”</p> <p>The Pythons, who also included John Cleese, 84, Michael Palin, 80, and the late Terry Jones — made a fortune thanks to their iconic cult films, including <em>Life of Brian</em>, hit stage show <em>Spamalot</em>, which Idle co-wrote, and the original <em>Flying Circus</em> BBC TV series.</p> <p>They were back in the limelight in 2014 with <em>Monty Python Live (Mostly) — One Down, Five to Go</em>: a reference to former member Graham Chapman who died in 1989 aged just 48.</p> <p>It featured interpretations of some of their famous sketches, and reportedly earned the surviving members at least £2 million ($3.87m AUD) each.</p> <p><em>Image credits: Getty Images </em></p>

Retirement Income

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Downsizing cost trap awaits retirees – five reasons to be wary

<p><em><a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a></em></p> <p>It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing.</p> <p>Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations.</p> <p>It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face.</p> <p>The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees.</p> <h2>Reason 1 – upfront moving costs are high</h2> <p>When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty.</p> <p>For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000.</p> <p>These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>.</p> <h2>Reason 2 – levies are high</h2> <p>Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not.</p> <p>Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments.</p> <p>The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs.</p> <p>When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&amp;eprintid=23322">must be paid</a>.</p> <p>Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them.</p> <p>Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>.</p> <h2>Reason 3 – costs of maintenance</h2> <figure class="align-right "><figcaption></figcaption></figure> <p>Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for.</p> <p>Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above.</p> <h2>Reason 4 – loss of financial security</h2> <p>It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners.</p> <p>Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement.</p> <p>Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&amp;eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs.</p> <p>Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again.</p> <p>Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs.</p> <p>Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions.</p> <h2>Reason 5 – loss of security of tenure</h2> <p>Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell.</p> <p>There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life.</p> <p>Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age.</p> <h2>Downsizing raises poverty risks</h2> <p>Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked.</p> <p>Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs.</p> <p>Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs.</p> <p>Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home.</p> <p>Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/80895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><a href="https://theconversation.com/profiles/erika-altmann-361218"><em>Erika Altmann</em></a><em>, Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/downsizing-cost-trap-awaits-retirees-five-reasons-to-be-wary-80895">original article</a>.</em></p>

Retirement Income

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7 hacks for retirees to make your money last longer

<p>As Australians continue to live longer, the squeeze is on to make each dollar last longer – and never moreso than in retirement.</p> <p><a href="https://www.aihw.gov.au/reports/life-expectancy-deaths/deaths-in-australia/contents/life-expectancy">Life expectancies in Australia</a> are now 85.4 years for women and 81.3 years for men. Meanwhile, the <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release">average age at retirement</a> for all retirees is 56.3 years. That’s up to 29.1 years of retirement to be paid for without a salaried income.</p> <p>Thankfully, making money last longer is just possible, with the help of a few tips and tricks.</p> <ol> <li><strong>Embrace seniors’ discounts</strong></li> </ol> <p>It was once said that “it’s better to pay full price than to admit you’re a senior citizen”. Really? Who wouldn’t prefer the extra cash!</p> <p>Being “senior” opens the door to numerous discounts and freebies.</p> <p>If you haven’t already, apply for your eligible concession cards, including the <a href="https://www.servicesaustralia.gov.au/commonwealth-seniors-health-card">Commonwealth Seniors Health Card</a> (for discounted healthcare and prescriptions) and state or territory seniors card (for discounted/free vehicle registration, public transport and other services).</p> <p>Additionally, many businesses offer seniors discounts – insurers, retailers, attractions and more. But they may not advertise these discounts widely, so it pays to ask.</p> <ol start="2"> <li><strong>Maintain a plan</strong></li> </ol> <p>Having a plan and keeping it up to date ensures you don’t overdraw from super, losing the income-generating power of those funds and running out prematurely.</p> <p>I prefer a ‘savings and investment plan’, which sounds nicer and is more comprehensive than a ‘budget’.</p> <p>Incorporate your goals, expenses, assets, and incomes – visibility keeps you disciplined and allows you to act quickly if something is amiss.</p> <ol start="3"> <li><strong>Spend points</strong></li> </ol> <p>Many retirees have held their current credit card, store cards and frequent flyer account for years – decades even. How many points are sitting there unused? </p> <p>These points generally aren’t transferable, so can’t be gifted in your will. It’s use them or lose them! </p> <p>Points can pay for everything from groceries to homewares, travel and even your Christmas shopping – conserving your cash and super.</p> <ol start="4"> <li><strong>Get comfortable</strong></li> </ol> <p>Rightsizing your home sooner rather than later has numerous benefits, such as:</p> <ul> <li><a href="https://www.ato.gov.au/Individuals/Super/Growing-and-keeping-track-of-your-super/How-to-save-more-in-your-super/Downsizer-super-contributions/">downsizer super contributions tax breaks</a> to boost superannuation earnings.</li> <li>paying less for your new home, since property prices generally track upwards whilst investing the extra equity.</li> <li>avoiding complications of moving later in life when your health or mobility may not be as good.</li> <li>avoiding a mistake - using the time to find exactly what you want, where you want, rather than being under pressure and having to spend stamp duty again</li> </ul> <p>Home ownership is also a major determinant of how comfortable your retirement will be. And given the current state of Australia’s rental market, selling your home to move into rented accommodation could prove costly. </p> <ol start="5"> <li><strong>Retain protections</strong></li> </ol> <p>Protections are typically a cost – insurance premiums, legal fees, memberships etc. However, the cost of not having them in place can be far higher.</p> <p>Plus, in the case of insurances, prices and restrictions increase with age – meaning you pay more but get less value for that spend, compared with the more favourable terms of a long-held policy.</p> <p>By all means adjust your protections to suit your current and future needs. But think twice before trying to save a few dollars by discarding insurances or cancelling sports and social memberships that keep you active.</p> <ol start="6"> <li><strong>Update estate planning</strong></li> </ol> <p>Considerable costs (and heartache) inevitably hit a grieving partner and family where someone dies without having their affairs properly in order:</p> <ul> <li>funeral costs and medical bills pile up if funds haven’t been allocated for them.</li> <li>delayed payouts from insurances and super if those details aren’t readily available. </li> <li>loss of economies of scale (living costs per person are cheaper for couples than singles). </li> <li>unexpected taxes, debts, and liabilities.</li> <li>legal conflicts arise where wills are unclear or outdated.</li> <li>a person’s wishes may go overlooked or be challenged where guardianships and power of attorney were not devised.</li> </ul> <p>In extreme cases, the surviving spouse may be forced to sell their home to pay associated costs or because they can’t afford to maintain it alone. </p> <ol start="7"> <li><strong>Seek good advice</strong></li> </ol> <p>Just like a good doctor helps you stay physically and mentally healthy, a good financial adviser helps your finances stay healthy, tactically smart and use strategies to reduce tax which stretches your money further.</p> <p>Be sure their accreditation is up-to-date, and they have experience working with retirees (not just those planning for it during their working years).</p> <p>Often, the cost of this advice pales in comparison to the tax saved and additional income earned through benefits, structures and plans you never even knew about. What’s not to love about that!</p> <p><strong><em>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> </em></strong></p> <p><em>Image credits: Getty Images</em></p>

Retirement Income

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Sickness or health: Healthy life split along gender, education lines

<p>Australians are living and working longer than ever, but the number of healthy years they’re enjoying with this added longevity isn’t shared equally between the sexes, or by those who finished school before Year 12.</p> <div class="copy"> <p>A paper recently <a href="https://doi.org/10.1016/S2468-2667(23)00129-9" target="_blank" rel="noreferrer noopener" data-type="URL" data-id="https://doi.org/10.1016/S2468-2667(23)00129-9">published</a> in <em>The Lancet</em> <em>Public Health</em> from the Ageing Futures Institute at the University of New South Wales shows an increase in longevity in Australia. Other data in the publication reveal detail about “healthy years”.</p> <p>Men, and those with higher levels of education, worked about 2 years longer in good health. For women and those with lower education, the years of healthy life expectancy have gone backwards.</p> <p>The report, led by statistician Dr Kim Kiely who is now based at The University of Wollongong, compared representative cohorts of people aged 50-100 who participated in the Household Income and Labour Dynamics in Australia survey (HILDA). Those cohorts were measured over decade long periods – the first from 2001-2010 and the second from 2011-2020.</p> <p>Men added an extra 11 months of healthy life between the cohorts, while women lost a month. Similarly those of any gender who had completed year 12 added about 10 months to their healthy life expectancy, while the same amount of time was lost by those who hadn’t.</p> <p>“Everyone’s increasing their working life expectancy, so the years they’re expected to be working,” Kiely says. “What is different is how long they’re expected to be living in good health: women and people with low education didn’t have an improvement in healthy life expectancy.</p> <p>“Everyone’s also living longer than ever before, but for women, those extra years seem to be years of poor health.  People with lower education – they end up going backwards, they’re losing years of healthy life.”</p> <p>Australia’s working life trends are similar to those in Europe and the UK, though this research suggests the Australian labour force works longer in poor health than their antipodean counterparts.</p> <p>Kiely says the findings are important considerations for policymakers pondering questions of retirement and pension ages: the demands of some labour may not be evenly spread when it comes to considering health implications.</p> <p>“We have a pension age that has been rising steadily over the past couple of decades – it’s not rising anymore – but there is a strong expectation for people to be working longer,” Kiely says. “And if that is the case, then we need opportunities for work for mature age, older adults, and those work opportunities have to be suitable for their capacity to work.</p> <p>“We do need to address things like age and gender discrimination in the workforce. And we need to think about how we support people who are unable to work before they reach the pension age.”</p> <p>Kiely is extending his research into how the nature of work in Australia influences these high-level findings. He hopes this can explain why gender and education influence healthy working years.</p> <p>Further drilling down into other subgroups is important, say Dr Marty Lynch and Dr Ross Wilkie from Keele University, UK. They investigated healthy working life expectancy as part of Britain’s Independent State Pension Age Review last year. They too found Briton were working longer, but not at a rate that keeps pace with the national pension age.</p> <p>In a <em>Lancet</em> editorial accompanying the Australian research, they point out that the HILDA data evaluation only shows changes in average ages on gender and education lines.</p> <p>“The extent of HWLE [Healthy Working Life Expectancy] inequalities between subpopulations with multiple specific characteristics are likely to be even wider and will also indicate targets and interventions to increase the number of years that people can be healthy and in work,” they say.</p> <p>The impact of socioeconomic status on life expectancy and disease burden was recently highlighted in a large-scale review of Australia’s 30-year health data.</p> <p><a href="https://cosmosmagazine.com/people/society/australias-life-expectancy-is-up-but-healthy-years-are-a-different-story/">It found</a> while Australians have added 6 years to their life expectancy since 1990, those with lower socioeconomic backgrounds had a higher risk of death-causing disease.</p> <p><em>Image credits: Getty Images</em></p> <p><em><a href="https://cosmosmagazine.com/people/society/sickness-or-health-healthy-life-split-along-gender-education-lines/">This article</a> was originally published on <a href="https://cosmosmagazine.com">Cosmos Magazine</a> and was written by <a href="null">Cosmos</a>. </em></p> </div>

Retirement Life

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Essential money conversations retirees should have with family

<p>Discussions about funding retirement, aged care and inheritances may be uncomfortable. However, not having them risks your wishes going unmet and family conflicts where details aren’t clear. </p> <p>Hence having discussions about money while you are able to is one of the best (and cheapest!) investments you can make – for both you and your family.</p> <p>Precisely what those discussions entail will depend on your circumstances – and theirs. Yet many points apply almost universally:</p> <p><strong>What matters to you</strong></p> <p>Even the best laid plans mean nothing if those responsible for enacting them don’t know what they are or understand your reasoning behind them.</p> <p>Your will provides a legal overview of who gets what upon your death, while nominated beneficiaries determine how assets are divided from superannuation and some other structures.</p> <p>A separate letter of wishes can informally share your wishes, covering more than just legalities. Sharing this before your death allows family to clarify your wishes and ask questions. </p> <p><em>Go through:</em></p> <ul> <li>How your money should be managed now and longer term (e.g., you may want money set aside for grandchildren’s education, or have instructions for a dependent’s ongoing care).</li> <li>Funeral arrangements; cremation or burial; where you will be laid to rest.</li> <li>Plans for anyone other than direct family, charities etc.</li> <li>Any non-negotiables among your wishes.</li> </ul> <p><strong>Partner protections</strong></p> <p>Ensure your partner knows how they will be looked after if they outlive you. Similarly, your kids should know what if any support they will need to provide – especially important for blended families. </p> <p>Where beneficiaries have divorced/separated, will you exclude their ex from your estate? Are your records updated to reflect this?</p> <p>Ensure everyone knows the difference between joint tenants and tenants in common for property owners – only one automatically leaves your share of the property to your co-owner. </p> <p><strong>Health matters</strong></p> <p>How do you want to be looked after in your final years? Don’t assume your loved ones already know everything.</p> <p>Communicate your wishes, small and large – medications, dietary requirements, retirement living, palliative care, resuscitation.</p> <p>Discuss whether power of attorney and enduring guardianship are needed should you be unable to make decisions over your health and finances (e.g., due to dementia or stroke), and who will assume those responsibilities.</p> <p><strong>Family legacy</strong></p> <p>Consider the legacy you want to leave and whether this aligns with your family’s expectations.</p> <p>Is dividing assets equally among your children really fair if one is well-off while another struggles or has complex needs? </p> <p>Do your plans on inheritance unwittingly create headaches for the recipients – such as leaving property to someone who cannot afford to maintain it, or tax liabilities that eat into any financial gain?</p> <p>Discuss non-financial legacy too: do your offspring know about your (and hence their) heritage? Are there special family mementos/stories to pass on? This knowledge may be lost if you don’t share it now.</p> <p><strong>Place to call home</strong></p> <p>Given their financial, logistical, and emotional implications, living arrangements are crucial to discuss before things need to change (and change can be imposed suddenly, such as by a health emergency). </p> <p><em>Consider:</em></p> <ul> <li>Where would you want to go if you need high-level care?</li> <li>Is your current home suitable in your advanced years? How would any required modifications be paid for?</li> <li>Would you move nearer your kids? Downsize, upsize or sea/treechange?</li> <li>If you move, would you need to sell your current home? Could it be retained somehow?</li> <li>Do you want/expect kids to care for you? Are they capable of doing so? </li> <li>Could/would you live with one of your children? If so – such as paying to build a granny flat on their property – how does this affect your will? Would they be forced to sell so their siblings receive their inheritance?</li> </ul> <p><strong>Team united</strong></p> <p>Having everyone on the same page helps things to run smoothly – especially during difficult times such as a death or serious illness in the family.</p> <p><em>Stay aligned by:</em></p> <ul> <li>Introducing adult children to your financial adviser, lawyer, and accountant.</li> <li>Ensuring everyone knows where to find your will and who is your executor.</li> <li>Disclosing what is and is not up to date.</li> <li>Providing contingency access to passwords, important documents, keys etc.</li> <li>Sharing relevant policy details (e.g., life insurance).</li> </ul> <p>These discussions may be sensitive and difficult to initiate, but are crucial to ensure your wishes are known and enacted. Plus, they may encourage your loved ones to think about their own wishes – and give you all peace of mind for the future!</p> <p><strong><em>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a></em></strong></p> <p><em>Image credits: Getty Images  </em></p>

Retirement Income

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Know thyself, know thy finances: which of the 5 money personalities are you?

<p><em><a href="https://theconversation.com/profiles/ayesha-scott-867030">Ayesha Scott</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> and <a href="https://theconversation.com/profiles/aaron-gilbert-867098">Aaron Gilbert</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a></em></p> <p>When it comes to money, are you a big spender or a fearful saver? Do you give away all your money or ignore financial demands until they become urgent?</p> <p>After decades of focus on financial literacy, it has become clear there is more to how we manage our money than access to information. Now new research has identified five distinct money personalities that drive how we spend.</p> <p>Commissioned by Te Ara Ahunga Ora (Retirement Commission) for their free, independent personal finance site <a href="https://sorted.org.nz/">Sorted</a>, <a href="https://assets.retirement.govt.nz/public/Uploads/Financial-Capability-Research/Report-Money-Personality-Tool-Project-AUT-vFINAL.pdf">our study</a> included an extensive review of the research on personality traits, values and attitudes. We then created an online survey, completed by nearly 500 New Zealanders, exploring how people engaged with their money.</p> <p>The research findings form the backbone of a <a href="https://sorted.org.nz/tools/money-personality-quiz">new online money personality quiz</a> designed to help people understand their money personality and inform their financial decisions and behaviour.</p> <p>With New Zealand <a href="https://www.rnz.co.nz/news/business/492013/new-zealand-in-recession-as-gdp-falls-for-second-quarter">officially in a recession</a>, it has never been more important to understand money management. Despite our best intentions, we often struggle to make “good” financial decisions consistently – including saving enough, using debt wisely, and staying on top of insurance policies and KiwiSaver.</p> <h2>Doing better with our money</h2> <p>According to Te Ara Ahunga Ora, New Zealanders are <a href="https://assets.retirement.govt.nz/public/Uploads/Research/TAAO-RC-NZ-FinCap-Survey-Report.pdf">good with the basics of financial capability</a> – budgeting and keeping track of money. But we score lower than comparable countries like Canada, Norway, Australia and Ireland on more advanced financial capabilities like long-term savings. We also lack confidence when it comes to our cash.</p> <p>There is a growing body of evidence that personality traits, money values and attitudes each play a crucial part in either aiding or hindering us making those “smart” financial decisions.</p> <p>Attitudes towards saving, the degree to which we value material possessions, and how comfortable we are with risk, will all affect the financial decisions we make – and, as a result, our financial wellbeing.</p> <h2>The 5 money personalities</h2> <p>We identified five distinct money personalities, each with their own strengths and weaknesses: the enterpriser, socialite, minimalist, contemporary and realist.</p> <p><strong>An enterpriser</strong> is a financially confident, future-orientated planner who enjoys looking after their finances and is proud of being money savvy. Their strengths include self-control, financial knowledge and making their money work for them.</p> <p>An enterpriser is unlikely to make impulsive or emotional purchases. However, their aspirational approach – viewing money as a priority and a symbol of success – may pair badly with materialism, causing them to spend money to gain status rather than for value or utility. Enterprisers benefit from learning about investing and planning for the future.</p> <p><strong>The minimalist</strong> is frugal, confident with their saving ability, and on top of their financial situation. Minimalists value a simpler life, scoring low on materialism and are not prone to impulsive or emotional purchases.</p> <p>Their weakness is not always making their money work as hard for them as it could, as they are less likely to take financial risks – even where there is a potential for higher investment returns. Low-cost, passive investment strategies may appeal to minimalists.</p> <p><strong>A socialite</strong> is a joyful risk taker, outgoing, and confident with their money handling. A generous extrovert, they are more likely to be materialistic than other personality types and tend to live for today rather than plan for tomorrow.</p> <p>Their high tolerance for risk suggests some socialites may take on unwise levels of financial risk. Those in this group who are also impulsive or prone to emotional purchases may find themselves overspending or vulnerable to over-extending themselves with consumer debt.</p> <p>Socialites may like to explore active investment strategies and riskier investment classes, however. Taking calculated risks and building financial resilience is an important focus for them.</p> <p><strong>A contemporary</strong> doesn’t enjoy managing their money and they lack confidence when it comes to financial matters. They are likely to say they’re a spender despite being less materialistic than others; living for today, they tend to engage in impulsive emotional spending and are generous to a fault.</p> <p>For contemporaries, the focus is increasing financial resilience by paying down debt and building an emergency savings fund, enabling them to share their wealth with others without affecting their own financial well-being. Working on their money mindset and general financial knowledge may allow them to build confidence and savings, then take a passive or “set and forget” approach to their financial life.</p> <p><strong>A realist</strong> is future-focused, very conservative with risk, and values money highly. But they are not confident with their money handling, despite paying close attention to their financial situation.</p> <p>The most introverted personality type, a more aspirational realist may be materialistic but is unlikely to make impulsive or emotional purchases a habit. This suggests building confidence and encouragement to take appropriate investment risks is important. Given they do not like making money decisions, automation of bill payments and savings may appeal.</p> <h2>Know thy money self</h2> <p>Each money personality offers different challenges when it comes to making financial decisions.</p> <p>Taking Sorted’s money personality quiz is fun, but it’s also a useful financial decision you can make right now.</p> <p>It’s not just about the label. Knowing your money personality can help you understand your strengths and weaknesses when it comes to financial decision making, giving you tools to improve your financial resiliency and security.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/207621/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><a href="https://theconversation.com/profiles/ayesha-scott-867030">A<em>yesha Scott</em></a><em>, Senior Lecturer - Finance, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> and <a href="https://theconversation.com/profiles/aaron-gilbert-867098">Aaron Gilbert</a>, Professor of Finance, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/know-thyself-know-thy-finances-which-of-the-5-money-personalities-are-you-207621">original article</a>.</em></p>

Retirement Income

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The 12 smartest cat breeds that are equally cute and clever

<h2> </h2> <h2>How smart is your cat?</h2> <p style="font-size: medium; font-weight: 400;">Cats are delightfully complex creatures. If we dare to sleep in a few minutes late, they paw at our faces and meow, demanding breakfast. They can be warm and affectionate yet aloof when we’ve been away from the house too long. Even some of the smartest cat breeds display unusual cat behaviour.  But there’s no need for standardised tests to verify what we already know – cats are smart! Whether they’re mixed breed or purebred, small cat breeds or large cat breeds, the reality is that there’s no one accurate way to measure the intelligence of individual cats. However, recent research gives us some compelling evidence to back up what we know in our hearts: feline intelligence is unique.</p> <p style="font-size: medium; font-weight: 400;">Are you clawing to find out which cat breeds are the smartest? Do they happen to be sleek black cat breeds, gorgeous orange cat breeds or all of the above? Experts say the ones on our list stand out when it comes to their trainability, insatiable curiosity, investigative skills and puzzle-solving brain power.</p> <h2>Do cats have a high IQ?</h2> <p style="font-size: medium; font-weight: 400;">Before we reveal the smartest cat breeds, let’s take a closer look at just how clever these little lions are. We know that a cat’s brain is almost as structurally complex as a human brain. Cats have around 250 million neurons (tiny information processors) in their cerebral cortex, the part of the brain that solves problems, makes decisions, decodes emotions and creates complex behaviour, like why cats purr or why cats sleep so much. (In comparison, dogs have about 429 million neurons, and humans house an average of 86 billion.) And while more neurons in the brain does equal more cognitive ability, it isn’t necessarily a good indicator of intelligence. That’s because cognition can involve other areas outside the cerebral cortex.</p> <p style="font-size: medium; font-weight: 400;">So why are dogs generally thought to be smarter than cats? Is it because they have more neurons? Nerdy science aside, there are a host of theories. For starters, dogs have been domesticated for thousands of years and have been living and learning social tasks from humans longer than cats. Temperament wise, dogs are more patient and generally eager to please their humans. In contrast, cats are typically less eager to please, though some are exceptionally cooperative. They tend to be more impulsive, have far less patience and get frustrated and lose interest in something that’s boring to them.</p> <p style="font-size: medium; font-weight: 400;">However, cats are highly attuned to their surroundings, and how they interact and respond is expressing intelligence, says Teresa Keiger, an all-breed judge with the Cat Fanciers’ Association. That awareness is what helped cats survive for thousands of years in the wild. “I notice that cats who were rescued from outdoor living situations tend to be more intelligent, since they’ve had to learn to think on their feet,” says veterinarian, Dr Stephanie Wolf. Whether a mixed breed or pedigree, rare cat breed or fluffy cat breed, one thing is certain: cats are smart and trainable; they just might not all be interested.</p> <h2>1. Russian blue</h2> <p style="font-size: medium; font-weight: 400;">When it comes to the smartest cat breeds, the Russian blue is so clever that it’s more apt to train you than the other way around. Like an alarm, the Russian blue will wake you up to feed it breakfast and remind you when it’s dinnertime. In fact, if you’re looking for an accountability partner to maintain a strict schedule, this might be the cat for you. “This quiet breed is very attuned to its household,” says Keiger. “They’re incredibly smart, and they wait to make certain that any stranger is not a threat to safety.” Once they’ve issued your security clearance, they form a tight bond and are regarded as an affectionate cat breed with their humans – so much so that they’re known for hitching a ride on their human’s shoulders.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Russian blue</td> </tr> <tr> <td>Height</td> <td>25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–20 years</td> </tr> </tbody> </table> <h2>Abyssinian</h2> <p style="font-size: medium; font-weight: 400;">This gorgeous cat looks like it stepped out of the jungle and into your living room. From the forward-tilting ears to the large almond-shaped eyes and the stunning colours of its coat, it resembles a cougar. “Abyssinians are incredibly intelligent, good problem solvers and full of an insatiable curiosity,” says Keiger.</p> <p style="font-size: medium; font-weight: 400;">Perpetually alert and busy, the Aby is happiest when patrolling its environment and playing with challenging interactive puzzle toys. “I always think of Abys as the MacGyver of cats – if they had thumbs, they’d figure out how to fix anything,” Keiger says. Intelligence aside, Abys are highly social cats and love people and other felines. Plus, they are one of the cat breeds that gets along with dogds.   Who knows? Maybe the Aby could teach your old dog a few new tricks.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Abyssinian</td> </tr> <tr> <td>Height</td> <td>30–40 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–15 years</td> </tr> </tbody> </table> <h2>3. Egyptian mau</h2> <p style="font-size: medium; font-weight: 400;">The key to this exotic beauty’s happiness is sharpening its mental and physical skills. “Being able to offer enrichment is key to ensuring your cat is getting the best level of stimulation and exercise,” says veterinarian, Dr Julie Andino. That goes for all breeds, but this cat craves cat toys and activities that showcase its lightning-fast physical and mental responses. They’re so clever that they can even turn on the faucet to play in water – although we may never understand why some cats hate water when the mau wouldn’t miss an opportunity to splash their paws in it. After they’ve expended their energy figuring out the day’s puzzles, this cutie loves to snuggle up with their human.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Egyptian mau</td> </tr> <tr> <td>Height</td> <td>17–28 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–13 years</td> </tr> </tbody> </table> <h2>4. Burmese</h2> <p style="font-size: medium; font-weight: 400;">One of the smartest cat breeds, the Burmese craves attention, something you can learn from its body language.  “This intelligent breed loves to entertain its resident humans so much that it often checks to make certain someone is watching,” says Keiger. They’re also known for being dog-like and enjoy a rousing game of fetch, an unusually quirky cat behaviour. And they’re adorably stubborn. “When they make up their minds that they want something, they simply don’t take no for an answer and usually figure out a way to get it.” And that includes attention from you. Burmese cats are all about give-and-take when it comes to affection, but if you’re busy and ignore them too long, they might take it upon themselves to follow you around the house, rub against your leg  or plop down on your lap and snuggle, all to remind you that you have a cat that needs some loving.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Burmese</td> </tr> <tr> <td>Height</td> <td>25–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–13 years</td> </tr> </tbody> </table> <h2>5. American bobtail</h2> <p style="font-size: medium; font-weight: 400;">It’s one thing for the smartest cat breeds to learn new tricks, but when a cat also has emotional intelligence, that’s an impressive combo. These cute stubby-tailed felines are noted for their empathy and for providing a calming and assuring presence that’s equal to emotional support dogs. “They are also very in tune with their household and owners, offering a shoulder to cry on when needed,” says Keiger.</p> <p style="font-size: medium; font-weight: 400;">They even act like dogs – playing fetch, walking on a leash and rushing to greet guests when there’s a knock on the door. Devoted companion, a lover of people and other animals, the American bobtail is an adorable and lovable companion.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">American bobtail</td> </tr> <tr> <td>Height</td> <td>22–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>13–15 years</td> </tr> </tbody> </table> <h2>6. Japanese bobtail</h2> <p style="font-size: medium; font-weight: 400;">The smartest cat breeds are often breeds we have never heard of before. Take the Japanese bobtail, one of the rarest cat breeds in the world. Every Japanese bobtail has its own unique tail. Yes, you read that right. No two tails are ever alike. They consider themselves family members and are always ready to help, even if that means sitting on your sitting on your laptop. “They are active, intelligent, talkative cats who delight in mischief-making,” says Keiger. They love to travel, stay in hotels and quite literally jump through hoops and over hurdles to impress you – and entertain themselves. As brain power goes, it’s that human-like personality that makes them seem so bright. “Life is never dull with a Japanese bobtail,” Keiger says.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Japanese bobtail</td> </tr> <tr> <td>Height</td> <td>20–23 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–18 years</td> </tr> </tbody> </table> <h2>7. Siamese</h2> <p style="font-size: medium; font-weight: 400;">The Siamese is wicked smart and loves to learn new tricks, Dr Andino says. If you don’t provide interesting and challenging outlets to exercise its noggin, it will find its own stimulating activities, whether you approve or not. If there’s one thing that competes with utilising its brain power, it’s the love and affection it craves from humans. If this cat had a daily schedule, “get affection from human” would be a top priority. And Siamese cats will let you know by that infamous yowling. “The Siamese are very vocal and communicative with their human,” says Dr Andino. They’re likely to talk your ear off, especially if they want something. One of the smartest cat breeds, the Siamese gets along well with people of all ages, as well as other animals. Bonus: if you take any stock in choosing cats most compatible with your zodiac sign, the Siamese happens to be very compatible with Libras.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Siamese</td> </tr> <tr> <td>Height</td> <td>20–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–20 years</p> </td> </tr> </tbody> </table> <h2>8. Bengal</h2> <p style="font-size: medium; font-weight: 400;">The Bengal sports a jaw-dropping, highly contrasted coat of distinctive marbling – very similar to what you see on leopards and jaguars. Its striking beauty is why you should keep close tabs on your Bengal, as it’s the cat breed most often stolen. Beauty aside, this very confident and curious cat isn’t shy about asking you to play. Bengals tend to get a little set in their ways, so introducing new people and furry friends should be done at an early age, if possible. Need to lay down a few new house rules or teach it some tricks? No problem. Bengals pick those up lickety-split. Their athletic prowess is unmatched, but they need plenty of space to run, pounce, roam and jump – some even love to walk on a leash and explore the outdoors. Bengals are super sweet and often very chatty (here’s what their meows may mean) and happy to engage you in a conversation.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Bengal</td> </tr> <tr> <td>Height</td> <td>20–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>12–16 years</td> </tr> </tbody> </table> <h2>9. Korat</h2> <p style="font-size: medium; font-weight: 400;">Did you know that the smartest cat breeds could also bring you good fortune? The Korat is one of Thailand’s good luck cats, and no, they don’t mind if you pet them several times a day to increase your luck! Korats are freakishly observant and will watch everything you do. Don’t be surprised if they learn how to open their own box of treats. They’re a devoted companion, an outgoing feline and enjoy having guests in the house. One reason is they love to snoop. Like the nosy houseguest who peeks in your medicine cabinet, the Korat returns the favour, sniffing and investigating your guest’s shoes, purses, coats and anything else that piques their interest. Because Korats thrive when they are around people, being alone may cause cat anxiety.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Korat</td> </tr> <tr> <td>Height</td> <td>23–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>10–15 years</p> </td> </tr> </tbody> </table> <h2>10. Bombay</h2> <p style="font-size: medium; font-weight: 400;">Bred to look like the Indian black leopard, this midnight-black kitty walks with a sway much like its wild counterpart and is equally gorgeous and clever. Bombay cats are exceptionally friendly, outgoing and lovey-dovey. Family life is their jam, including younger humans and furry siblings. “The Bombay kitty is great at being trained, and they’re very motivated to show their people what they are capable of learning,” says Dr Andino. These cats thrive with continuous education, learning new tricks and solving challenging interactive puzzles. And when the love bug hits them, watch out. They will hunt for your lap and crash there until they get enough pets and belly rubs.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Bombay</td> </tr> <tr> <td>Height</td> <td>23–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>12–16 years</td> </tr> </tbody> </table> <h2>11. Havana brown</h2> <p style="font-size: medium; font-weight: 400;">The brownie, as its fans dub it, is deeply connected to humans and savours affectionate companionship. (Havana browns insist on being involved in whatever you’re doing, yet they are remarkably sensitive and use both their paws to gently touch their humans. They share DNA with the Siamese, but their meows are quieter, charming and almost flirty. They might prefer the company of one favourite human over others in the family but tend to get along with humans of all ages, as well as furry roommates. Perhaps the most interesting characteristic is how they investigate. While most felines examine things with their nose, Havana browns use both their paws to check out trinkets and treasures.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Havana brown</td> </tr> <tr> <td>Height</td> <td>23–28 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>8–13 years</td> </tr> </tbody> </table> <h2>12. Singapura</h2> <p style="font-size: medium; font-weight: 400;">The Singapura is the smallest domestic cat breed, with a whole lot of feisty goodness in a tiny package. If those big saucer eyes and adorable face aren’t captivating enough to get your attention, you might need some catnip. And don’t let the small frame fool you. Under that fur lies a muscular and athletic body. The Singapura is a social butterfly, always looking to be the centre of attention, in the cutest, playful ways. They are the life of any party, whether they’re invited or not. Conversations with Singapuras are a pure delight as well and never get stale – you could listen to their sweet meows for hours, and they’ll love your high-pitched baby talk just as much. Keenly observant, intelligent and extroverted, these cats still act like kittens well into adulthood.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Singapura</td> </tr> <tr> <td>Height</td> <td>15–20 centimetres</td> </tr> <tr> <td>Weight</td> <td>2–4 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>11–15 years</td> </tr> </tbody> </table> <p style="font-size: medium; font-weight: 400;"><em>Image credit: Shutterstock</em></p> <p><em>This article originally appeared on <a href="https://www.readersdigest.co.nz/food-home-garden/pets/the-12-smartest-cat-breeds-that-are-equally-cute-and-clever" target="_blank" rel="noopener">Reader's</a></em><a href="https://www.readersdigest.co.nz/food-home-garden/pets/the-12-smartest-cat-breeds-that-are-equally-cute-and-clever" target="_blank" rel="noopener"> Digest</a>.</p>

Family & Pets

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6 creative ways to make money

<p>If you’re planning for retirement or have already retired, it’s quite likely you’re conscious about sources of income to support your lifestyle change. Leaving the nine-to-five workforce doesn’t have to mean you will need to start to rely solely on your nest egg and investments for money.</p> <p>Here are a few ways you mightn’t have thought of to keep the money coming in;</p> <p><strong>Sell old stuff</strong> – Look around you at home. You may find an Aladdin’s cave of treasures, some of which are no longer any use to you. These can be a valuable source of pocket money – as long as your kids and grandkids don’t have eyes for them! There are an increasing number of ways to find potential customers hungry for your bargains. Sites like eBay, craigslist and Gumtree are the most popular if you’re digitally inclined, however don’t forget the old faithful garage sale – it’s also a great way to build your social connections with the local community.</p> <p><strong>Rent a room or car</strong> – This is another big growth industry as people and businesses look at their assets and clever ways to create two-way benefits by making them available to rent – users get an affordable and convenient resource and you get the hip-pocket benefit for something often under-utilised. There’s the obvious ideas such as renting out spare rooms to boarders, but also consider unused car parking spaces, a car that you may not often drive, even your house for location shoots for films and commercials.</p> <p><strong>Consulting or teaching</strong> – If you’ve left that 20-year corporate career but are still interested in options for work, there’s no shortage of ways to reinvent yourself. Think of how you can bridge your career experience and skills with part-time, consulting or tutoring roles.</p> <p>New work – You can also try something completely different such as being a film or television commercial extra (there are lots of roles for more mature characters), mystery shopper, dog walker, pet or child minder, tour guide or part time gardener.</p> <p><strong>Online gigs</strong> – Online outsourcing and working remotely is more popular than ever, and there’s a broad range of work you can now find online and undertake from the convenience of your desktop. Look at market research, blogging, paid surveys and reviews as a few options. Websites like Airtasker offer everything from jobs you can do from home such as copywriting, data input and logo design through to trade jobs such as lawn mowing or deliveries.</p> <p><strong>Home business</strong> – You might consider finally starting up your own business from home, whether it’s catering or cooking goodies for the local markets, making furniture, becoming the next Van Gough or writing thrillers. It’s a great way to realise a new or unexploited talent or skill and make some extra cash along the way. Another way of consolidating housing costs while supplementing income might be setting up a B&amp;B or taking a role as an onsite property manager.</p> <p><em>Image credit: Shutterstock</em></p>

Money & Banking

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There’s a growing gap between countries advancing LGBTQ+ rights, and those going backwards

<p>Prime Minister Anthony Albanese and Foreign Minister Penny Wong joined 50,000 people to march in support of queer rights across the Sydney Harbour Bridge for World Pride in early March. A week earlier, Albanese became the first sitting prime minister to march in Sydney’s Mardi Gras, something he’s done over several decades.</p> <p>And yet at the same time, in another part of the world, Uganda’s parliament passed <a href="https://theconversation.com/ugandas-new-anti-lgbtq-law-could-lead-to-death-penalty-for-same-sex-offences-202376">a string of draconian measures</a> against homosexuality, including possible death sentences for “aggravated homosexuality”. Any “promotion” of homosexuality is also outlawed.</p> <p>Seven years ago, I co-wrote a book with Jonathan Symons called Queer Wars. Back then, we suggested there was <a href="https://researchers.mq.edu.au/en/publications/queer-wars-the-new-global-polarization-over-gay-rights">a growing gap</a>between countries in which sexual and gender diversity was becoming more acceptable, and those where repression was increasing. </p> <p>Sadly, that analysis seems even more relevant today.</p> <h2>A growing gap</h2> <p>Some countries have been unwinding criminal sanctions around homosexuality, which are often the legacy of colonialism. This includes, in recent years, former British colonies <a href="https://www.hrw.org/news/2022/08/22/singapore-decriminalize-gay-sex">Singapore</a> and <a href="https://www.theguardian.com/world/2018/sep/06/indian-supreme-court-decriminalises-homosexuality">India</a>.</p> <p>But others have been imposing new and more vicious penalties for any deviation from stereotypical assumptions of heterosexual masculine superiority (what Australian sociologist Raewyn Connell <a href="https://journals.sagepub.com/doi/abs/10.1177/0891243205278639">terms</a> “hegemonic masculinity”).</p> <p>Anti-gay legislation is currently pending in Ghana, which led US Vice President Kamala Harris to <a href="https://www.bbc.com/news/world-43822234">express concerns</a> on a recent visit.</p> <p>These moves echo the deep homophobia of Russian President Vladimir Putin, who has <a href="https://www.bostonreview.net/articles/putins-anti-gay-war-on-ukraine/">bizarrely linked</a> intervention in Ukraine to protecting traditional values against LGBTQ+ infiltration.</p> <p>Meanwhile, reports from Afghanistan suggest that anyone identified as “LGBT” is <a href="https://www.hrw.org/news/2022/01/26/afghanistan-taliban-target-lgbt-afghans">in danger of being killed</a>.</p> <p>Indonesia recently passed legislation <a href="https://www.theguardian.com/world/2022/dec/06/indonesia-passes-legislation-banning-sex-outside-marriage">penalising all sex outside marriage</a>. This follows <a href="https://www.tandfonline.com/doi/full/10.1080/13639811.2022.2038871">years of anti-queer rhetoric</a> from Indonesian leaders and crackdowns in regional areas.</p> <p>And while the Biden administration is supportive of queer rights globally, the extraordinary hysteria <a href="https://www.theguardian.com/us-news/2023/mar/07/cpac-anti-trans-rhetoric">around trans issues in the Republican Party</a> reminds us the West has no inherent claim to moral superiority.</p> <h2>Where to next?</h2> <p>Speaking at the World Pride Human Rights Conference, both Wong and Attorney General Mark Dreyfus made it clear Australia would press for recognition of sexuality and gender identity as deserving protection, as part of <a href="https://www.foreignminister.gov.au/minister/penny-wong/speech/sydney-worldpride-human-rights-conference-opening-statement">our commitment to human rights</a>.</p> <p>Wong also announced a <a href="https://www.themandarin.com.au/213443-wong-announces-international-fund-for-lgbt-rights/">new Inclusion and Equality Fund</a> to support queer community organisations within our region.</p> <p>Australian governments have usually been wary of loud assertions of support for queer rights. This is partly due to a reasonable fear this merely reinforces the perception that such language reflects <a href="https://www.cambridge.org/core/journals/african-studies-review/article/abs/locating-neocolonialism-tradition-and-human-rights-in-ugandas-gay-death-penalty/33A06F4F33CF586E20E208BE790E71E0">a sense of Western superiority</a>, unwilling to acknowledge other societies may have very different attitudes towards gender and sexuality.</p> <p>Australia is part of the Equal Rights Coalition, an intergovernmental body of 42 countries dedicated to the protection of the rights of LGBTQ+ people, and has supported sexual and gender rights in the <a href="https://humanrights.gov.au/our-work/rights-and-freedoms/australias-second-universal-periodic-review-human-rights">country reviews</a> undertaken by the United Nations Human Rights Commission.</p> <p>Australia has a minimal presence in Uganda, and direct representations are unlikely to have much effect. Uganda is a member of the Commonwealth, as are Ghana, Kenya and Zambia, where official homophobia appears to be increasing. But there’s little evidence the Australian government sees this as a significant foreign policy forum, or is prepared to push for sexual rights through its institutions.</p> <p>As persecution on the basis of sexuality and gender identity increases, more people will seek to flee their countries. Queer refugees face double jeopardy: they’re not safe at home, but they’re often equally unsafe in their diasporic communities, which have inherited the <a href="https://www.weforum.org/agenda/2018/01/lgbt-refugees-untold-story/">deep prejudices of their homelands</a>.</p> <p>The UN’s refugee agency <a href="https://www.unhcr.org/lgbtiq-persons.html">reports</a> that most people seeking asylum because of their sexuality are unwilling to disclose this, because of discrimination within their own ethnic communities. This makes it impossible to have accurate numbers. But a clear signal from Australia would be a powerful statement of support – that it understands the situation and welcomes people who need flee because of their sexuality or gender expression.</p> <p>An official Canadian government document <a href="https://www.canada.ca/en/immigration-refugees-citizenship/services/refugees/canada-role/2slgbtqi-plus.html">states</a>: "Canada has a proud history of providing protection to and helping to resettle the world’s most vulnerable groups. That includes those in the Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, and additional sexually and gender diverse community."</p> <p>Theirs is a model worth following.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/theres-a-growing-gap-between-countries-advancing-lgbtq-rights-and-those-going-backwards-203329" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Caring

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What are microaggressions? And how can they affect our health?

<p>Microaggressions are seemingly innocuous verbal, behavioural or environmental slights against members of minority communities.</p> <p>The term microaggressions was coined by American psychiatrist Chester Pierce in his 1970 essay Offensive Mechanisms. He explained:</p> <blockquote> <p><em>Most offensive actions are not gross and crippling. They are subtle and stunning. The enormity of the complications they cause can be appreciated only when one considers that these subtle blows are delivered incessantly. Even though any single negotiation of offence can in justice be considered of itself to be relatively innocuous, the cumulative effect to the victim and to the victimiser is of an unimaginable magnitude.</em></p> </blockquote> <p>While originally conceived in the context of race relations, microaggressions may also relate to gender, sexual orientation, religion, disability status, weight, or a combination of these.</p> <h2>What do microaggressions look like?</h2> <p>Consider these situations. All are real-life stories from people of colour I know (used with their consent):</p> <ul> <li> <p>a woman walks into a hairdresser’s shop. The shop is empty and the hairdresser is cleaning hair from the floor. The woman asks if she could get a haircut – if not right now, perhaps another day. The hairdresser says she can’t help as she is not taking on any new customers.</p> </li> <li> <p>a man is waiting to pick up his partner in his car, parked on a side street near his partner’s apartment, which is located in a predominantly white suburb. He is minding his own business sitting in his own car. Each time a person walks by, they stare at the man, and keep staring as they walk past</p> </li> <li>a couple is waiting to order coffee in a busy city cafe. The server is chatty with the white couple ahead of them. When they progress to the front of the line, the server is curt, avoids eye contact, and is eager to move on to the next customer. After placing their order, the couple stands where other patrons had previously waited for their orders. A staff member comes over and asks the couple to wait outside instead.</li> </ul> <p>Examples of microaggressions towards other identity minorities may include moving away from a trans person on public transport, or not considering wheelchair accessibility needs when booking venues for meetings or events.</p> <p>Each of these incidents in isolation may not seem particularly harmful, and some may even chalk them up to coincidences or “reading too much into a situation”.</p> <p>However, when experienced repeatedly, daily, or even multiple times a day, they can harm people’s psychological and physical health.</p> <h2>Microaggressions are subtle</h2> <p>Microaggressions are often so subtle that even the victim may not realise that they have just experienced one until later – likely because microaggressions are often accompanied with dissociation (i.e. disconnection from thoughts, feelings or personal sense of identity).</p> <p>As psychologist Ron Taffel explains, dissociation is a “psychically handy” tool that helps ease the pain,</p> <blockquote> <p><em>making sure that the moment does not fully register or does its damage until a less vulnerable time later – perhaps during a quiet time alone…</em></p> </blockquote> <h2>Microaggressions affect our physical and mental health</h2> <p>Microaggressions can occur in all environments, from the workplace, to shops, medical clinics, schools, universities, even while walking or parked on the street. So victims often become increasingly self-conscious and hypervigilant.</p> <p>The impacts of microaggressions may extend beyond psychological burden and also impact the body’s physiological state.</p> <p>When humans perceive a sense of imminent danger, the body’s “fight, flight, freeze response” is activated. While this is a useful evolutionary mechanism to protect us from physical danger, when triggered frequently – as may be the case with microaggressions – it can take a toll on the body and contribute to issues such as high blood pressure, anxiety, depression and addiction.</p> <p>Racial microaggressions have also been associated with suicide risk. One study found experiencing race-related microaggressions leads to more symptoms of depression, which in turn increases thoughts of suicide.</p> <h2>Microaggressions may deter people from seeking help</h2> <p>Health issues among victims may be further compounded when microaggressions are experienced in the health-care sector. A study from 2011 found that sexual orientation-related microaggressions (for example, derogatory comments or assumptions about a person’s sexual orientation) reduced the likelihood of LGBTIQ+ people seeking psychotherapy and impacted their attitudes towards therapy and therapists.</p> <p>Research involving Indigenous people also suggests microaggressions impact help-seeking behaviours in this group (such as not scheduling or attending regular health-care appointments), which subsequently increases the risk of hospitalisation.</p> <h2>Indirect effects of microaggressions</h2> <p>Microaggressions may also impact people’s health status indirectly. Research suggests repeated microaggressions can cause marginalised groups to internalise feelings of inadequacy.</p> <p>Over time, this internalised oppression may impact their academic and professional success, and consequently socioeconomic status.</p> <h2>Sceptics and victim-blaming</h2> <p>Sceptics often attribute microaggressions to victims’ “negative emotionality” – a tendency to show negative affect and always feel like a victim.</p> <p>However, proponents argue that this is a form of victim-blaming that further compounds the harm caused by microaggressions.</p> <p>Clinical psychologist Monnica Williams suggests that the years of unchecked microaggressions themselves could be the very thing to cause negativity in marginalised people.</p> <h2>Victims’ responses to microaggressors</h2> <p>Victims’ responses to microaggressions can vary among people, and among events experienced by the same person. Victims have to regularly decide whether to let it slide or confront the aggressor.</p> <p>The discourse on microaggressions in social media seems to be on the rise. One study found that there was a drastic increase in the usage of the term “microaggression” on Twitter between 2010 and 2018. Social media discussions and other online spaces may help victims (particularly younger people) to respond more critically to microaggressors.</p> <p>Other technological innovations, such as the virtual reality-based intervention Equal Reality, are also helping people walk in another’s shoes, recognise unconscious bias, mitigate risk of microaggressions, and promote more inclusive workplaces.</p> <p><em>Image credit: Shutterstock</em></p> <p><strong><em>If this article has raised issues for you, or if you’re concerned about someone you know, call Lifeline on 13 11 14.</em></strong></p> <p><em>This article originally appeared on <a href="https://theconversation.com/what-are-microaggressions-and-how-can-they-affect-our-health-193309" target="_blank" rel="noopener">The Conversation</a>.</em></p>

Mind

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Should I put more money into my super? What are the benefits and can I take it out before retirement if I need it?

<p>Superannuation is never far from the headlines lately, with the government recently calling for <a href="https://treasury.gov.au/consultation/c2023-361383">views</a> from the public on what the objective of super should be. </p> <p>The basic idea behind super is you set aside a portion of your pay over your working life, so you can build up a nest egg to see you through your retirement years. </p> <p>But what if you’re worried you might not have enough super by the time you retire? Yes, you could top up your super now and watch the nest egg grow through the magic of <a href="https://moneysmart.gov.au/saving/compound-interest">compound returns</a>– but what are the downsides?</p> <p>If you’re considering putting more money into your super, and want to know more about how the whole system works, here are the basics.</p> <h2>What are the rules about putting more money into my super?</h2> <p>First, make sure you know where your superannuation actually is and how much you’ve got so far. This <a href="https://www.ato.gov.au/forms/searching-for-lost-super/">page</a> from the Australian Tax Office explains how to search for any lost super.</p> <p>The next thing to know is there are <a href="https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions---too-much-can-mean-extra-tax/?page=2#Understanding_contribution_caps">limits</a> to how much you can contribute into superannuation. </p> <p>There are two types of super contributions you can make.</p> <p>The first category is called “<a href="https://moneysmart.gov.au/grow-your-super/super-contributions">concessional contributions</a>”. These are taxed at 15%, which may be lower than the tax you’d otherwise have to pay on that money. So making these super top-ups can not only grow your nest egg, but save you tax.</p> <p>The amount of concessional contributions you can make is A$27,500 per annum. That figure includes all the super your employer puts in your super account and any extra contributions you make under a salary sacrifice scheme or where you are claiming an income tax deduction.</p> <p>The second category, known as “non-concessional contributions”, means money you pay into your super withoutclaiming a tax deduction. This could be, for example, money from savings, an inheritance or a lottery win.</p> <p>There is a limit of $330,000 over three years (or $110,000 per year), for these contributions.</p> <h2>What are the benefits of topping up my super?</h2> <p>Two words: compound returns.</p> <p>Compound returns are where you earn returns not only on the original investment you put in, but also on any returns on that investment. As the government’s <a href="https://moneysmart.gov.au/saving/compound-interest">Moneysmart</a> website puts it, “you get interest on your interest”.</p> <p>Over the years, this means you could earn a lot more than you would if you didn’t top up your super. </p> <p>How much more? Well, it depends on the investment return and fees of your fund.</p> <p>But as an example: thanks to compound returns, putting an extra $100 per month into your super from age 30 could <a href="https://www.calc.help/industrysuper/add-extra-to-your-super">mean you retire</a> with an extra $65,000 in your account (here, I’ve assumed investment returns of 7.5%, accumulation inflation of 4% and salary inflation of 4%).</p> <p>And the longer it is there, the more it will grow – so starting top-ups early might pay off. </p> <p>This is particularly important for <a href="https://theconversation.com/spirals-and-circles-snakes-and-ladders-why-womens-super-is-complex-103763">women</a>, whose super balances may look a bit feeble if they take parental leave or cut their hours while raising a family.</p> <p>Then there’s the tax benefits of super top-ups. If you would normally pay a net tax rate higher than 15% on investments such as shares, your money will grow more quickly inside superannuation than shares.</p> <p>You may also be eligible for government co-contributions that add to your balance if you make a non-concessional contribution during the year and your income is less than $57,016.</p> <h2>So what’s the downside? Can I access my superannuation before retirement?</h2> <p>Basically, no. You must meet a “<a href="https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/withdrawing-your-super-and-paying-tax/?page=2#Conditionsofrelease">condition of release</a>” before being able to access your superannuation.</p> <p>The most common is retirement, defined as reaching the age of 65 or leaving work after reaching “preservation age” (which is 60 for anyone born after July, 1964).</p> <p>There are some <a href="https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Early-access-to-your-super/">special circumstances</a> where you may be able to access your superannuation early.</p> <p>These are very narrow, and include serious financial hardship or necessary medical treatment that cannot be funded any other way. </p> <p>Death or terminal illness also qualify for release.</p> <h2>But what if I need a deposit for a house?</h2> <p>This is a dilemma for non home-owners. After compulsory superannuation guarantee deductions and HECS-HELP, it may be hard to save a deposit.</p> <p>One of the few circumstances where you access your superannuation early is through the <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">First Home Super Savers Scheme</a>. </p> <p>If you make voluntary contributions, you may be able to withdraw these contributions for a home deposit. </p> <p>However, this scheme is very tightly regulated. You can read more about the rules for this scheme <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">here</a>.</p> <h2>So… should I put more money into my super?</h2> <p>It depends. If you do, make sure you understand you will not be able to access that money until retirement.</p> <p>If you own your home (or intend to rent until retirement) you may want to put more into superannuation while you can afford it, knowing it is contributing to a secure retirement. </p> <p>But if home ownership is your goal, you should think carefully about choosing between superannuation and saving for a home deposit.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared in <a href="https://theconversation.com/should-i-put-more-money-into-my-super-what-are-the-benefits-and-can-i-take-it-out-before-retirement-if-i-need-it-201950" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Retirement Income

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Don’t let financial shame be your ruin: open conversations can help ease the burden of personal deb

<p>Nearly <a href="https://www.ipsos.com/en-nz/19th-ipsos-new-zealand-issues-monitor">two-thirds of New Zealanders</a> are worried about the cost of living, and a quarter are worried about <a href="https://www.canstar.co.nz/wp-content/uploads/2023/03/Consumer-Pulse-Report-NZ-2023-Final-4.pdf">putting food on the table</a>. But the <a href="https://visionwest.org.nz/food-hardship-part-one/">shame</a> that can come with financial stress is preventing some people from seeking help. </p> <p>According to a recent survey, a third of New Zealanders were not completely truthful with their family or partners about the state of their finances, and 12% <a href="https://www.stuff.co.nz/business/money/129477493/financial-infidelity-research-finds-kiwis-hiding-debts-from-their-partners">actively hid their debt</a>. This shame and worry about money can spill over into <a href="https://www.nzherald.co.nz/bay-of-plenty-times/news/concerns-buy-now-pay-later-schemes-could-fuel-addiction-as-kiwis-spend-17b-last-year/VOV3VIDIG2MZBGJEGPMLGWDMJI/">addiction</a>, <a href="https://www.newsroom.co.nz/i-had-serious-concussion-bad-credit-and-15000-debt-abuse-survivor">violence</a> and <a href="https://corporate.dukehealth.org/news/financial-strains-significantly-raise-risk-suicide-attempts">suicide</a>. </p> <p>Considering the effect of financial stress on our wellbeing, it is clear we need to overcome the financial stigma that prevents us from getting help. We also <a href="https://www.apa.org/topics/money/family-financial-strain">owe it to our kids</a> to break the taboo around money by communicating our worries and educating them on how to manage finances better. </p> <h2>The burden of growing debt</h2> <p><a href="https://www.stuff.co.nz/business/money/300817697/mortgage-pain-homeowners-facing-repayment-hikes-of-up-to-900-a-fortnight">Ballooning mortgage repayments</a> are compounding the financial distress of many New Zealanders. At the beginning of 2023, an estimated 11.9% of home owners were behind on loan payments, with more than <a href="https://www.rnz.co.nz/news/business/485045/data-shows-430-000-new-zealanders-behind-in-credit-repayments-in-january">18,400 mortgagees in arrears</a>. </p> <div data-id="17"> </div> <p>Given the <a href="https://www.treasury.govt.nz/publications/an/an-21-01-html">majority of household wealth</a> in New Zealand is in property, our financial vulnerability is closely linked to the ebbs and flows of the <a href="https://content.knightfrank.com/research/84/documents/en/global-house-price-index-q2-2021-8422.pdf">second most overinflated property market</a> in the world. </p> <p>There are also cultural reasons for growing financial distress. Many households have taken on significant debt to “<a href="https://www.stuff.co.nz/business/7616361/Keeping-up-with-the-Joneses">keep up with the Joneses</a>” and to pursue the quintessential <a href="https://www.interest.co.nz/property/99890/westpac-commissioned-survey-suggests-many-new-zealanders-still-pine-quarter-acre">quarter-acre dream</a>. Social comparison and peer pressure act as powerful levers contributing to problem debt and over-indebtedness. </p> <p>The average household debt in New Zealand is more than <a href="https://tradingeconomics.com/new-zealand/households-debt-to-income">170% of gross household income</a>. That is higher than the United Kingdom (133%), Australia (113%) or Ireland (96%).</p> <h2>The rise of problem debt</h2> <p>And we are digging a deeper hole. Over the past year, <a href="https://www.rnz.co.nz/news/business/485045/data-shows-430-000-new-zealanders-behind-in-credit-repayments-in-january">demand for credit cards increased by 21.7%</a>. The use of personal debt such as personal loans and deferred payment schemes <a href="https://www.nzherald.co.nz/business/demand-for-personal-credit-rises-arrears-also-up-as-cost-of-living-bites/YCEM74CII5FQBPJXO3UOG4Y3GY/">is also climbing</a>. There is a real risk this debt could become problem debt. </p> <p>Problem debt can have severe and wide-reaching consequences, including <a href="https://theconversation.com/over-300-000-new-zealanders-owe-more-than-they-own-is-this-a-problem-173497">housing insecurity</a>, <a href="http://www.socialinclusion.ie/publications/documents/2011_03_07_FinancialExclusionPublication.pdf">financial exclusion</a> (the inability to access debt at affordable interest rates), <a href="https://www.tandfonline.com/doi/full/10.1080/07409710.2012.652016?journalCode=gfof20">poor food choices</a> and a plethora of <a href="https://bmcpublichealth.biomedcentral.com/articles/10.1186/1471-2458-14-489">health problems</a>. </p> <p>Yet, the hidden <a href="https://spssi.onlinelibrary.wiley.com/doi/10.1111/sipr.12074">psychological</a> and <a href="https://link.springer.com/article/10.1007/s11205-008-9286-8">social cost of financial distress</a>remains often unspoken, overlooked and underestimated.</p> <p>Even before the pandemic, <a href="https://www.scoop.co.nz/stories/BU1909/S00616/research-shows-financial-stress-impacts-mental-wellbeing.htm">69% of New Zealanders were worried</a>about money. The share of people worrying about their financial situation was higher for women (74%), and particularly women aged 18-34 (82%). It is no coincidence that the latter are particularly at risk of problem debt through so-called <a href="https://acfr.aut.ac.nz/__data/assets/pdf_file/0008/691577/Gilbert-and-Scott-Study-2-Draft-v10Sept2022.pdf">“buy now, pay later” schemes</a>. </p> <p>The stigma of financial distress extends beyond the vulnerable and the marginalised in our society. A growing number of <a href="https://www.rnz.co.nz/news/political/467417/middle-income-families-hoping-for-help-in-budget-as-rising-costs-sting">middle-class New Zealanders </a> are quietly suffering financial distress, isolated by financial stigma and the taboos around discussing money. When pressed, one in two New Zealanders would rather <a href="https://www.scoop.co.nz/stories/BU2203/S00384/research-shows-wed-rather-talk-about-politics-than-our-finances.htm">talk politics over money</a>. </p> <h2>Time to talk about money</h2> <p>Navigating financial distress and <a href="https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=2526&context=sulr">stigma</a> can feel overwhelming. Where money is a taboo subject, it may feel safer to withdraw, maintain false appearances, be secretive or shun social support. </p> <p>This tendency to avoid open discussions and suffer in silence can lead to <a href="https://loneliness.org.nz/lonely/at-home/financially-struggling/">feelings of isolation</a> and contribute to <a href="https://theconversation.com/how-financial-stress-can-affect-your-mental-health-and-5-things-that-can-help-201557">poor mental health</a>, such as depression, anxiety and emotional distress. </p> <p>Sadly, the trauma of living in financial distress can also <a href="http://irep.ntu.ac.uk/id/eprint/39442/1/1307565_Wakefield.pdf">break up families</a>. Losing the symbols of hard-gained success and facing the prospect of a reduced lifestyle can be tough. It often triggers feelings of personal failure and self doubt that deter us from taking proactive steps to talk openly and seek help. </p> <p>But what can families do to alleviate some of this distress?</p> <h2>Seek help</h2> <p>First, understand that <a href="https://www.ft.com/content/86767aac-98e0-4dae-8c5a-d3301b030703">you are not alone</a>. Over 300,000 New Zealanders <a href="https://theconversation.com/over-300-000-new-zealanders-owe-more-than-they-own-is-this-a-problem-173497">owe more than they earn</a>.</p> <p>Second, seek help. There are many services that help people work through their financial situation and formulate a plan. In the case of excessive debts, debt consolidation or <a href="https://goodshepherd.org.nz/debtsolve/">debt solution loans</a> may help reduce the overall burden and simplify your financial situation. </p> <p>For those struggling with increasing interest on their mortgages, reaching out to your bank early is critical. During the 2008 recession, banks in New Zealand <a href="https://www.beehive.govt.nz/release/banks-exchange-letters-crown-support-distressed-mortgage-borrowers">worked with customers</a> to avoid defaulting on mortgages, including reducing servicing costs, capitalising interest and moving households to interest-only loans. It is essential to understand that the <a href="https://www.stuff.co.nz/life-style/homed/real-estate/130677426/are-we-on-the-brink-of-a-wave-of-mortgagee-sales">banks do not want mortgagees to fail</a>, and that options exist.</p> <p>To help future generations avoid debt traps, we need open communication about money – also known as “<a href="https://link.springer.com/article/10.1007/s10834-020-09736-2">financial socialisation</a>”. This includes developing values, sharing knowledge and promoting behaviours that help build <a href="https://files.eric.ed.gov/fulltext/EJ1241099.pdf">financial viability and contribute to financial wellbeing</a>. </p> <p>The lessons about handling money from family and friends are crucial for <a href="https://www.frontiersin.org/articles/10.3389/fpsyg.2020.02162/full">improving our children’s financial capability</a>, helping them be <a href="https://www.fsc.org.nz/it-starts-with-action-theme/growing-financially-resilient-kids">more financially resilient</a> and better able to survive the stresses we are experiencing now – and those <a href="https://www.stuff.co.nz/business/money/300836616/heres-how-much-household-costs-are-expected-to-increase">yet to come</a>.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/dont-let-financial-shame-be-your-ruin-open-conversations-can-help-ease-the-burden-of-personal-debt-202496" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Retirement Income

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How to increase the value of your home in one weekend

<p>Increasing the value of your property pre-sale doesn’t have to require a team of professionals.</p> <p>Just one weekend dedicated to cleaning, refreshing, tidying and upgrading can put you in great stead for sales success.</p> <p>We asked the experts to reveal the best value-adding DIY projects to suit a short time frame and shoestring budget.</p> <p><strong>1. Refresh an old paint job</strong></p> <p>There is no easier way to boost a property’s value than a new paint job, which can range from a one-room refresh, to an extensive repaint of the entire home.</p> <p>For homeowners low on budget and time, focus on painting the main living areas with Dulux’s Wash&amp;Wear to disguise mismatched old paint, cracks and imperfections.</p> <p>“It’s great for interiors, especially in the matt finish. Even if the colours don’t entirely match, you can get away with it,” says Andrea Lucena-Orr, colour planning and communications manager at Dulux Australia.</p> <p>In terms of colour, white remains popular for appealing to a broad base of buyers.</p> <p>If painting an older property, opt for warmer whites such as Dulux Natural White or Antique White U.S.A ® Contemporary homes are more suited to cooler whites, with a grey or beige base, such as Dulux Lexicon ® or White on White.</p> <p><strong>2. Create a feature wall</strong></p> <p>Painting a feature wall can be a valuable method for creating a point of difference on a minimal timeframe. This might be a dark single shade in the main bedroom or a bold dual-colour wall.</p> <p>“Feature walls, nooks and colour-blocking with tape are all ways to add interest,” says Lucena-Orr.</p> <p>When selecting colours for a feature wall, look for shades that will complement the room’s existing furniture and décor items.</p> <p>“Try using colours to highlight an artwork, a piece of furniture, or tie into the bed linen,” Lucena-Orr says.</p> <p><strong>3. Tidy the exterior</strong></p> <p>If there is one area of the home you should focus on before a sale, it’s the exterior.</p> <p>While some homes will benefit from an entire façade repaint, updating this area can be achieved in a few quick jobs.</p> <p>Start by removing any cobwebs, cleaning the walls and filling in visible cracks. For added aesthetic appeal, paint some pots and place them near the front door, or spray paint a bench seat for the front porch.</p> <p>Painting the front door a colour such as cobalt or teal blue is another powerful tool for creating colour memories and attracting interest.</p> <p>“A teal door will help buyers remember the house. Even if buyers don’t like it, it’s quick and easy for them to change,” Lucena-Orr says.</p> <p><strong>4. Install storage shelves</strong></p> <p>Installing open shelves in the kitchen, bathroom, laundry and study is a simple way to integrate more storage into a property, which never goes unappreciated.</p> <p>“Installing hooks, rails or racks to your doors will spruce things up without being too dramatic or involve any structural changes,” says Bunnings category manager – decorator, Sharyn Petrzela.</p> <p>“Pull-out baskets and base-mount slide-out baskets are also a great way to add storage and can be installed in a day.”</p> <p><strong>5. Outsource odd jobs</strong></p> <p>Selling a home is stressful and time consuming. If budget allows, don’t be afraid to outsource tasks where you can.</p> <p>Websites such as Airtasker make it affordable to hire individuals for even the smallest household jobs, from removing weeds, to assembling furniture, collecting hard rubbish and hanging pictures.</p> <p>You might just want someone to focus on cleaning those detailed areas of the home such as the skirting boards, architraves, light fittings and door handles.</p> <p><strong>6. Add the finishing touches</strong></p> <p>If you can’t afford a professional property stylist to decorate your home pre-sale, try these expert tips.</p> <p>“As a stylist, I think having decorative items (vases, candle holders and similar) that have a colour theme and style that is carried through the house gives a sense of flow that makes a house feel like a whole, instead of a series of different rooms,” says Sophie Kost, director and lead designer of My Beautiful Abode.</p> <p>Even small updates like replacing the feather inserts in your couch cushions can have a big impact on the feeling of a home.</p> <p>Remember to declutter surfaces and remove personal possessions in this process, as this allows buyers to better imagine themselves in the space.</p> <p><em>Image credits: Getty Images</em></p>

Home Hints & Tips

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5 retirement derailers and how to avoid them

<p>The business of working life means retirement can sneak up on us. For the unprepared, the speeding train can quickly fall off the tracks – with potentially devastating consequences.</p> <p>Thankfully, if you know what to look for and how to prepare, you can reach your retirement destination safe and sound:</p> <ol> <li><strong>Failing to plan</strong></li> </ol> <p>Failing to plan means planning to fail.</p> <p>Ideally, you haven’t put off having a spending and investment plan until now. So, what’s needed is to update that plan.</p> <p>Your update should cover:</p> <ul> <li>When will you stop working? Will it be gradual? What about your partner?</li> <li>How will you fund your retirement? How much will you need? How often?</li> <li>Your eligibility for a full or part <a href="https://www.servicesaustralia.gov.au/how-much-age-pension-you-can-get?context=22526">age pension</a>? (Remember, the family home isn’t means tested, so you may be eligible even without realising it!)</li> <li>Any benefits/payouts you’re entitled to and what to do with them – e.g., bonuses, share options, proceeds of a business sale.</li> <li>New and changed living costs in retirement – new hobbies, extra travel, higher energy bills from more time at home.</li> </ul> <ol start="2"> <li><strong>Poor super strategy</strong></li> </ol> <p>Superannuation should never be set-and-forget – before or in retirement.</p> <p>Before retiring, look at maximising your super’s value – including <a href="https://www.ato.gov.au/individuals/income-and-deductions/offsets-and-rebates/super-related-tax-offsets/#Taxoffsetforsupercontributionsonbehalfof">spousal contributions</a> and <a href="https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-co-contribution/">co-contributions for low and middle-income earners</a>. There are loads of other strategies too.  This money gets invested for faster growth, while delivering you tax concessions now.</p> <p>Then determine how and when to begin drawing from it. Avoid the temptation to go big and risk blowing it all early, leaving nothing to support you in your later years. Check in regularly to ensure continued growth – potentially even offsetting what you’re withdrawing as income.</p> <ol start="3"> <li><strong>No stable home</strong></li> </ol> <p>"Older households that were not able to access or sustain home ownership when they were younger are more likely to face high housing costs in their retirement than similar households who are home owners," a <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook46p/HomeOwnership">Parliamentary paper</a> notes. </p> <p>The family home is effectively our only tax-free asset (save for buyers’ stamp duty). Its equity can be leveraged to fund other income-producing investments – property rents, share dividends etc. Or it can be sold, allowing you to downsize comfortably and still have money left over.</p> <p>Home ownership also offers stability when you need it most – moving is more cumbersome as your years advance, plus securing rental accommodation is usually harder when you’re no longer working.</p> <p>It needn’t be much, but owning property keeps many doors open to you in retirement.</p> <ol start="4"> <li><strong>Inadequate estate planning</strong></li> </ol> <p>There are two major mistakes around estate planning: </p> <ul> <li>Not having a current will: Devising a will is generally simple and not expensive. So don’t put it off. If you do have one, when was it last updated? Does it reflect your current circumstances – relationships breakdown, remarriage, children/stepchildren, grandkids? If not, you could inadvertently lavish your ex or overlook loved ones.</li> <li>Undeclared beneficiaries: Contrary to popular belief, wills don’t cover everything. Superannuation, businesses, trusts etc. are treated separately, requiring you to nominate beneficiaries within their structures. Not doing so can lead to disputes or the government becoming your primary benefactor. </li> </ul> <p>Work with your team – lawyer, financial adviser and accountant to ensure your estate planning is done tax effectively and your loved ones won’t see their inheritance gobbled up in tax or other costs.</p> <ol start="5"> <li><strong>Insufficient protections</strong></li> </ol> <p>Just because you are or soon will be retired, doesn’t mean you don’t need protections. Arguably, you need them even more.</p> <ul> <li>Revisit insurances: Can you get retiree discounts/better coverage? Are any new assets you purchase covered – boat, caravan, artwork? Business/professional insurances may no longer seem relevant, but ensure they really aren’t needed before cancelling them – once they’re gone, you won’t get the same cover at the same price again.</li> <li>Guardianships/power of attorney: We never know what’s around the corner. Explore legal provisions should you become ill, disabled or otherwise unable to make decisions over your affairs or for children/dependents in your care. </li> <li>Social connections: Retirement can be lonely as you cease seeing colleagues daily. Memberships to sporting, crafts, automotive, gardening, and other clubs are good for maintaining social connections. Spend more time with family and friends too, but remember – they may not have as much free time as you do.</li> </ul> <p>Retirement should be enjoyable. Yet by not planning ahead, your twilight years could run off the rails. Investing a little time and effort now is sure to pay big dividends during your twilight years!</p> <p><em><strong>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> </strong></em></p> <p><em>Image credits: Getty Images</em></p>

Retirement Income

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Should I invest in a unit or a house?

<p><em><strong>The first tenet of investment is to get the best possible returns, so let’s look at where the money comes and goes when you’re investing in residential real estate.</strong></em></p> <p><strong>Initial cost</strong></p> <p>Units are typically more affordable than houses, so it’s easier for a first-time investor to raise the necessary capital. Houses often have a higher entry pricepoint due to land value. According to the latest Domain Group House Prices Report, the national median house price is $636,315 while units are $476,023. With the surge in Sydney prices, the median price of units in Sydney is now higher than the current median house price in Brisbane, Adelaide, Hobart and Canberra.</p> <p><strong>Ongoing expenses</strong></p> <p>Council rates are usually higher on a house and you’ll be required to pay land taxes on an ongoing basis. With a unit or apartment, you will have to account for strata fees quarterly for the life of the investment, including any special levies that may be raised.</p> <p><strong>Maintenance</strong></p> <p>If you own a house, all maintenance issues are your responsibility (unless you have a property manager), whereas the maintenance and care of an apartment building and surrounds is the responsibility of the body corporate.</p> <p><strong>What do you want from your investment?</strong></p> <p>What sort of investor are you? Are you looking for regular long-term income, or do you plan to renovate and ‘flip’ the property as soon as you can?</p> <p>A house generally offers higher capital growth, due to the land component of the property. There’s also more potential for negative gearing. Units, on the other hand, tend to offer higher rental yields so they are more favourable from a cashflow perspective. Their lower pricepoint may allow you to build a diversified property portfolio more quickly.</p> <p>Older units in smaller blocks might offer better value than swanky new apartments in skyscrapers. You’re less likely to pay ongoing levies for amenities such as gyms, concierges and heated swimming pools; your voice will be louder in owners’ corporation meetings. It’s also easier to find new tenants if there aren’t 20 other vacant properties in the same location.</p> <p><strong>Rentability</strong></p> <p>Both houses and units are in demand right now. To optimise your investment, look for places where rental demand is high, such as around universities, transport or lifestyle areas with easy access to schools, parks, cafes, shops or beaches.</p> <p>Ultimately, there are reasons for and against almost any dwelling type. The right investment choice for you will depend on your financial position, risk profile and investment strategy.</p> <p><em>First appeared on <a href="https://www.domain.com.au/advice/unit-or-house-the-better-first-investment/" target="_blank" rel="noopener"><strong><span>Domain.com.au</span></strong></a>. Republished with permission.</em></p> <p><em>Image: Getty Images</em></p>

Real Estate

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How to make your retirement money go the distance

<p>Retirement should hopefully be a long and rewarding experience and you’re obviously going to need to fund it. Here are a few tips to assist you and your nest egg in supporting your plans.                            </p> <p><strong>Planning</strong></p> <p>Planning for an unknown timeframe is a challenge, but the bottom line is the more effort you put into preparing and regularly reviewing your options, the better. </p> <p>A key starter is determining your needs. It might be worth sitting down with a financial planner to review your circumstances. Try to visualize the lifestyle you want during retirement – travel, moving house, new car, new hobbies, interests. Then look at the cost implications of this lifestyle and whether you’re going to be able to afford it based on your current income and spending.</p> <p><strong>Understand your retirement accounts</strong></p> <p>Take the time to review all your investments, accounts and other services to ensure they are the best fit for your retirement lifestyle. Rebalance your portfolio to align your finances with the most effective investments for this stage of life.                          </p> <p><strong>Income</strong></p> <p>An obvious choice for extending your income is deferring retirement. This doesn’t necessarily have to mean continuing with full time work – it could just be part time or casual work in order to create additional income. You might be surprised at the variety of work opportunities available as our workforce becomes increasingly focused on part time, casual and consulting roles. It may also be possible to make money from your hobbies or crafts.</p> <p><strong>Downsizing</strong></p> <p>While you might be comfortable with the lifestyle you have enjoyed for a while, downsizing on some aspects of life can assist greatly in getting more mileage from your retirement savings. Housing is the most obvious and usually the most beneficial in terms of boosting savings. This might be in the form of a smaller home but it may also involve looking at where you live. You might consider a more cost-effective suburb, shaving those mortgage repayments or bolstering your savings even further. The same downsizing might apply to cars, boats and memberships, just to name a few.</p> <p><strong>Health</strong></p> <p>As you may be requiring health services more often in retirement, remember that the most cost-effective way to approach this is through prevention by ensuring your ongoing health and fitness is as good as it can be. Keeping active with a healthy diet and regular exercise is the best way to stave off illness and health issues, often without spending anything extra. </p> <p><strong>Entitlements</strong></p> <p>Become aware of the broad range of concessions, discounts and entitlements that are available to you in retirement. Always keep your senior status in mind with future purchases and payments – it never hurts to ask!</p> <p><strong>Sell stuff</strong></p> <p>Now’s the perfect time to clean out the garage, attic and storage of all that accumulated stuff. While you probably want to save your biggest treasures for the family, sites like eBay, Gumtree and Craigslist are an easy way to make a bit of money out of items you no longer want.</p> <p><em>Image credits: Getty Images </em></p>

Retirement Income

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Great money saving hacks

<p>If you’re looking for some simple tips on how to save on everyday costs, here’s a few handy pointers:</p> <p><strong>Buy your groceries online</strong> – Take advantage of online-only specials and free delivery. You won’t have to pay for parking, and you won’t be tempted to impulse buy as much. Just check the prices are comparable to what you pay in store.</p> <p><strong>It’s time to share</strong> – Collective consumption is spreading across the globe and cannot only save you money but could help save the planet. You can save bucketloads from car-share networks such as GoGet, renting out a spare room, renting out your whole place on Airbnb, or doing the same with items you don’t use as much anymore such as ski gear.</p> <p><strong>Haggle for a discount</strong> – If you’re looking to make a deal with a service provider such as a utility or home loan, jump online to compare what competitors are offering and ask to price match or beat your current offer.</p> <p><strong>Start a piggy bank</strong> – Emptying your pockets into a piggy bank every day is a great habit to get into to save money. You mightn’t have done it since you were a youngster, but storing your change away can really add up.</p> <p><strong>The power of $50</strong> – Pay an extra $50 off your credit card or home loan each month. This will have a significant impact on your balance by saving you hundreds – even thousands – of dollars in interest charges and make you debt-free sooner.</p> <p><strong>Get savvy with coupons, discount and promo codes</strong> – Coupons are a great way to save money on grocery and everyday items. Start clipping them from your local paper or go to a website like <span style="text-decoration: underline;"><strong><a href="http://www.shopadocket.com.au/" target="_blank" rel="noopener">shopadocket.com.au</a></strong></span> and print them out.</p> <p><strong>Check out eBay</strong> – there are tons of auctions on there every day, from furniture, and household items to designer clothes, and you can get great deals on your next new item or outfit.</p> <p><strong>Grow a vegetable garden</strong> – You may not think you’ve got a green thumb but it’s not that hard and growing your own veggies means less money spent at the supermarket. Maybe start with your own herbs. Small herb gardens are easy to grow, you can keep them inside you home or on a windowsill and fresh herbs taste heaps better too!</p> <p><strong>Buy used cars</strong> – Buying a car that’s only one or two years old is a much better investment than a brand new one. They don’t depreciate as quickly.</p> <p><strong>Buy in bulk</strong> – purchasing your food and household products in bulk is a great way to save money over the long term.  </p> <p><strong>Borrow from the library</strong> – why buy books when you can borrow them from your local library for free?</p> <p><em>Image: Getty</em></p>

Retirement Income

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Who wants to be a billionaire? Thankfully for the planet, most people don’t

<p>Reality check: most people don’t actually want to be billionaires.</p> <p>A <a href="https://dx.doi.org/10.1038/s41893-022-00902-y" target="_blank" rel="noreferrer noopener">new study</a> is challenging the long-held economic belief that it’s in human nature to have unlimited wants, finding this widely held assumption only applies to a minority of people.</p> <p>In a survey of nearly 8,000 people from 33 countries across six continents, social psychologists asked people how much money they wanted to accrue in their “absolutely ideal life”.</p> <p>They found that in 86% of countries most people thought they could achieve the ideal life with US$10 million (AUD$14.3 million) or less, and in some countries the ideal was as little as US$1 million (AUD$1.4 million), across their entire lives.</p> <p>To put that into context, the current richest person in the world, Elon Musk, has a net worth of more than US$200 billion – that’s enough for 200,000 people to achieve their perceived ideal lives.</p> <p>The push to continually increase individual wealth and pursue unending economic growth has had dire environmental consequences for the planet, with resource use and <a href="https://cosmosmagazine.com/earth/earth-sciences/global-pollution-mapped-for-good-and-bad/" target="_blank" rel="noreferrer noopener">pollution</a> increasing alongside wealth.</p> <p>But these findings, published in <em>Nature Sustainability</em>, challenge the idea that approaches relying on limiting wealth and growth to achieve sustainability are against human ideals and aspirations.</p> <p>“The findings are a stark reminder that the majority view is not necessarily reflected in policies that allow the accumulation of excessive amounts of wealth by a small number of individuals,” explains co-author Dr Renata Bongiorno, a social psychologist at the University of Exeter and Bath Spa University in the UK.</p> <p>“If most people are striving for wealth that is limited, policies that support people’s more limited wants, such as a wealth tax to fund sustainability initiatives, might be more popular than is often portrayed.”</p> <h2>Would you want to win a billion in the lottery?</h2> <p>The researchers specifically asked people to imagine their absolutely ideal life, and then consider how much money would want in that life.</p> <p>Participants made a choice of their preferred prize in a hypothetical lottery, choosing from US$10,000, US$100,000, US$1 million, US$10 million, US$100 million, US$1 billion, US$10 billion or US$100 billion.</p> <p>It was emphasised that the odds of winning each lottery were identical.</p> <p>The researchers hypothesised that people with insatiable wants – those who cannot conceive of a point where their wants would be fully satiated, so they will always aspire to accumulate more/better goods – would choose the maximum of US$100 billion over all the lesser (limited) amounts.</p> <p>But while people with unlimited wants were identified in every country surveyed, they were always in the minority. They tended to be younger people and city-dwellers, who placed more value on success, power and independence.</p> <p>They were also more common in countries with greater acceptance of inequality, and in countries that are more collectivistic – that focus more on group than individual responsibilities and outcomes. </p> <p>“The ideology of unlimited wants, when portrayed as human nature, can create social pressure for people to buy more than they actually want,” says lead researcher Dr Paul Bain, from the Department of Psychology at the University of Bath, UK.</p> <p>“Discovering that most people’s ideal lives are actually quite moderate could make it socially easier for people to behave in ways that are more aligned with what makes them genuinely happy and to support stronger policies to help safeguard the planet.”</p> <p><em>Image credits: Getty Images</em></p> <p><em><img id="cosmos-post-tracker" style="opacity: 0; height: 1px!important; width: 1px!important; border: 0!important; position: absolute!important; z-index: -1!important;" src="https://syndication.cosmosmagazine.com/?id=195370&amp;title=Who+wants+to+be+a+billionaire%3F+Thankfully+for+the+planet%2C+most+people+don%E2%80%99t" width="1" height="1" /></em></p> <div id="contributors"> <p><em>This article was originally published on <a href="https://cosmosmagazine.com/news/who-wants-to-be-a-billionaire/" target="_blank" rel="noopener">cosmosmagazine.com</a> and was written by Imma Perfetto. </em></p> </div>

Retirement Income

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How much net-worth do you need to retire?

<p>I’m often asked ‘How much net worth do I need to accumulate before I can retire?’ While everyone will have a different number depending on their wants and needs, let’s try to figure out yours.</p> <p><strong>Net Worth, Assets &amp; Liabilities</strong></p> <p>Your net worth (aka net assets, net wealth) is what’s left over if you cashed in all your assets, and paid out all your liabilities. </p> <p>Keeping things simple, an asset is something of value, and a liability is a debt you owe. For example, if you purchased a car using a car loan then the car’s value is the asset, and the balance of the car loan is the liability.</p> <p>You can further split your assets and liabilities into two categories: lifestyle and financial. Lifestyle assets are items of value you own for necessity or enjoyment: home, clothes, car, furniture, etc. Lifestyle debt is money you borrow to purchase lifestyle assets. Financial assets are investments you purchase for return, and financial debt is money you borrow to purchase financial assets.</p> <p>Here’s a diagram that summarises how to calculate your net assets (i.e. net worth):</p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2022/11/net-worth-graph-1.jpg" alt="" width="1280" height="720" /></p> <p><strong>Are You Rich?</strong></p> <p>If you find yourself in a situation where your liabilities are higher than your assets then you have negative net worth and are said to be ‘underwater’. Someone who can’t repay their liabilities is said to be insolvent, or more colloquially, flat out broke.</p> <p>If you’d like to compare your situation against the so-called Joneses, a Credit Suisse report ranked Australia as the richest country in the world, noting that at the end of 2021 the average Aussie had a net worth $410,000. The same report declared there were an estimated 390,000 Aussie millionaires, so pulling out my trusty calculator and dividing by our estimated population of approx 25.5m people, if you have a seven figure net worth then congratulations – you are in the top 1.5% of wealth builders and are amongst the richest of the rich.</p> <p>Before moving on, have a go at filling in the boxes in the diagram above to tally up your lifestyle and financial assets and liabilities and calculate your net worth.</p> <p><strong>What Do The Results Indicate?</strong></p> <p>Here’s a saying to remember: the more you do of what you’ve done, the more you’ll get of what you’ve got.</p> <p>Your present net worth is the product of your financial mindset and habits applied over time. Therefore, unless you improve your financial IQ and / financial EQ (i.e. the way you think, act and feel about money) then your future is unlikely to be any better than your present, and possibly considerably worse once you retire and cease receiving employment income.</p> <p>If your current net worth is strong, then well done and keep it up. If it’s not, or you want it to be better, then you’ll need help to up-skill and change your thoughts and behaviours before it’s too late.</p> <p><strong>What’s Your Magic Number?</strong></p> <p>My suggested magic number for a net worth number to aim for enough financial and lifestyle assets to afford the lifestyle you want in retirement. The goal is to be debt-free and have no financial or lifestyle liabilities.</p> <p>It’s important to point out that retirement isn’t necessarily the domain of older citizens. More and more, younger people are quietly quitting or seeking to be financially independent sooner so they can retire early.</p> <p><em>Financial Assets</em></p> <p>The amount of financial assets you need can be calculated by working backwards. That is, by dividing your desired annual income by your expected average investment return.</p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2022/11/net-worth-graph-2.jpg" alt="" width="1280" height="720" /></p> <p>For example, if your annual desired income was $80,000, and you had the skill to achieve an 8 per cent annual return, then you would need financial assets totaling $1,000,000.  That is, $1,000,000 invested at 8 per cent per annum will generate an income from your investments of $80,000 each year for the rest of your life.</p> <p>If you’re finding this all a bit confusing then you might find my ’10 and 8 Rule’ helpful. Simply multiply your current gross income by 10 to get your debt-free financial asset goal, and then multiply that result by 8 per cent (0.08) to get your estimated annual investment income. For instance, if you earned $70,000 per annum then your debt-free financial asset goal would be $700,000, and you would have an annual investment income of $56,000 to fund your retirement.</p> <p><em>Lifestyle Assets</em></p> <p>The amount of your lifestyle assets, such as home, furnishings, car, clothes, etc. all need to be added into the mix. The more extravagant your lifestyle needs, the larger your annual income will need to be to pay for it (and hence you’ll need more financial assets or the ability to achieve higher investment returns), and the bigger the lifestyle asset balance will need to be. </p> <p><strong>Summary</strong></p> <p>Taking into consideration everything we’ve discussed, here’s a blueprint you can follow to calculate your required net worth, and that also reveals how much more wealth you need to attract and keep to achieve your goal. </p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2022/11/net-worth-graph-3.jpg" alt="" width="1280" height="720" /></p> <p>Have a go at filling in the boxes, working across each row left to right. If you end up with a surplus then you already have enough assets, you just need to redeploy them so your money is working harder for you.</p> <p><strong><em>Edited extract from Steve McKnight’s Money Magnet: How to Attract and Keep a Fortune that Counts (Wiley $32.95), available now at all leading retailers.</em></strong></p> <p><em>Image credits: Supplied / Getty Images</em></p>

Retirement Income

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Gender pension gap: why women save less - and why that’s changing dramatically

<p>One issue <a href="https://www.scottishwidows.co.uk/knowledge-centre/gender-pension-gap/">that has</a> attracted <a href="https://prospect.org.uk/article/what-is-the-gender-pension-gap/#:%7E:text=The%20gender%20pension%20gap%20is,gap%20that%20year%20(17.3%25).">growing attention</a> in <a href="https://www.aviva.co.uk/aviva-edit/your-money-articles/women-know-gender-pension-gap/">recent years</a> is the “gender pension gap” – the fact that on average, women have lower private pension wealth and lower income in retirement than men. But before rushing to conclusions about how to “fix” this, it is crucial to understand what lies behind any pension differences between men and women. </p> <p>There are three main potential drivers behind this phenomenon:</p> <ol> <li> <p>Different labour market experiences: the “<a href="https://www.ifs.org.uk/publications/10358">gender pay gap</a>”, and the fact that <a href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Duration_of_working_life_-_statistics#:%7E:text=In%202019%2C%20the%20estimated%20expected,aged%2015%20years%20and%20more">men have</a> longer paid working lives than women;</p> </li> <li> <p>Different investment strategies: when it comes to <a href="https://www.gov.uk/pension-types">defined contribution pensions</a>, <a href="https://s-h-w.com/news-articles">men choose</a> to invest in portfolios with a higher expected rate of return.</p> </li> <li> <p>Different saving rates: as <a href="https://www.ifs.org.uk/publications/15425">we investigate</a> below, men and women may also differ in how likely they are to be offered a pension in their job, or tend to work for employers that contribute more or less to a pension, or tend to make different contributions themselves.</p> </li> </ol> <p>Importantly, the role of these potential drivers will have changed over time for various reasons. Mothers <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/familiesandthelabourmarketengland/2019#:%7E:text=In%20April%20to%20June%202019%2C%20three%20in%20four%20mothers%20with,mothers%20in%20employment%20in%202000.">have increasingly participated</a> in the labour market over the years, for example. Final salary pensions have been reformed to career average schemes, which in particular reduced the generosity for long stayers and those with stronger pay growth, <a href="https://www.pensionspolicyinstitute.org.uk/sponsor-research/research-reports/2013/17-05-2013-the-implications-of-the-coalition-governments-public-service-pension-reforms/">affecting men</a> more than women. Also, <a href="https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment">automatic enrolment</a> has been introduced for workplace pensions, which affected everyone’s participation in them. </p> <p>Gaps in pension income today may therefore reflect labour markets and pension arrangements from many years ago, and the gap in pension income for current working-age individuals may be quite different when they reach retirement. In an ongoing programme of work at the Institute for Fiscal Studies, funded by the <a href="https://www.nuffieldfoundation.org/">Nuffield Foundation</a>, we are examining in detail differences in pension saving rates between men and women that will contribute to a future “gender pension gap” for today’s working age individuals. </p> <h2>Making sense of the gap</h2> <p>In a <a href="https://www.ifs.org.uk/publications/15421">first publication</a>, we have documented differences in average pension saving between male and female employees before the introduction of <a href="https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment">automatic enrolment</a> in 2012. We found that on average across all employees (whether saving in a pension or not), women of all ages actually contributed more as a proportion of their earnings each year than men. </p> <p>However, this was driven by the fact that women were more likely to work in the public sector, where contribution rates are typically higher. Examining average pension saving among men and women within each sector reveals a different pattern. The average saving rates of male and female employees were similar until around age 35 but then diverged, with average contributions continuing to increase with age for men but not changing for women. </p> <p>The graphs below unpick what was driving this pattern among private-sector employees in Great Britain (though the pattern was broadly similar for public-sector employees). It was caused by the extent to which men and women participated in a pension. </p> <p>The proportion of men and women saving anything in a private pension was similar until around age 30 but then diverged, with men increasingly likely to be saving in a pension as they get older, while women’s pension participation plateaued. On the other hand, average contribution rates for those saving in a pension were actually slightly higher as a share of earnings among women than men. </p> <p><strong>Pension participation in overall savings</strong></p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2022/10/graph-1.jpg" alt="" width="1280" height="720" /></p> <p><strong>Average contribution rates in pension savings</strong></p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2022/10/graph-2.jpg" alt="" width="1280" height="720" /></p> <p>What might have been driving differences in pension participation? The timing of the divergence in people’s lives mirrored the evolution of the gender gaps <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2020">in pay</a>, <a href="https://www.ifs.org.uk/publications/13673">commuting</a> and <a href="https://www.ifs.org.uk/publications/14032">firm productivity</a>, and suggested that the arrival of children and related employment decisions was an important factor. </p> <p>So in our ongoing programme of research we are examining whether the gap in pension participation is associated with the arrival of children, and the extent to which female employees received a different pension offer from their employer, or made different saving decisions when presented with the same offer as male employees. </p> <h2>Effect of automatic enrolment</h2> <p>The introduction of automatic enrolment into workplace pensions has substantially changed pension-saving behaviour – in particular, substantially increasing pension participation among employees targeted by the policy. The graph below shows the proportion of male and female employees of different ages who were saving in a private workplace pension in 2012 and 2019 in Great Britain. </p> <p>The pattern in 2012 is represented by the two sets of dashed lines, with men again in blue and women in purple. It is similar to that estimated in the first graph in this article. </p> <p>But the pattern in 2019 is totally different. Rather than participation diverging at a particular age, women are now slightly less likely to be in a pension at all ages than men (but the level of participation among both is considerably higher). Automatic enrolment will therefore have fundamentally changed the nature of the gender gap in pension-saving rates going forwards. </p> <p> </p> <p><strong>Pension participation 2019 vs 2012</strong></p> <p><img src="https://oversixtydev.blob.core.windows.net/media/2022/10/graph-3.jpg" alt="" width="1280" height="720" /></p> <p>This highlights the importance of examining gender differences in saving rates, rather than just accrued pension wealth or pension income. Focusing on the latter risks developing policies to fix a perceived problem that has already changed.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/gender-pension-gap-why-women-save-less-and-why-thats-changing-dramatically-160648" target="_blank" rel="noopener">The Conversation</a>.</em></p>

Retirement Income