The retirement pension crisis is described in an article in Wikipedia.
Sufficient resources will not be available to fund retirement pension obligations.
Retirement pension crisis from shifting demographics.
Demographics are changing and resulting in noticeable changes
# retirees are living longer (increasing the relative number of retirees),
# Lower birth rates (decreasing the relative number of workers).
Consequently as these rates change sufficient retirement pension asset accumulation is suffering.
There is significant debate regarding the magnitude and importance of the problem which exists globally.
An article appeared in Money Management http://www.moneymanagement.com.au/news/superannuation/25-cent-self-employed-do-not-have-super)
It noted almost one-quarter of self-employed people do not have superannuation.
This is according to research by the Association of Superannuation Funds of Australia (ASFA).
Also self-employed women had superannuation balances that were around one-third lower than males who were self-employed.
Pension entitlement age changing in Australia.
There is a further contributing factor to the retirement pension crisis in Australia. That is the change that is occurring to the age at which the government age pension will be available.
The current qualification age for the Age Pension in Australia is 65 years. This will increase to age 70 by 1 July 1935.
This change applies to people born after 30 June 1958 who claim Age Pension from 1 July 2025.
A solution for the retirement pension crisis
When there is a problem there often is a solution and an accompanying opportunity.
That is the situation in this instance.
There is one solution that does not seem to get much discussion for solving the retirement pension crisis. That is educating people to be able to create an additional income stream by developing an on line business.
This could be both before retirement and in retirement. It could also be as a supplement to or completely replace otherwise received income.
In my experience people like to feel independent. Teaching those interested how to create a business income stream would help foster that feeling of independence.
Many retired people in society have the skills and back ground that fits them admirably for online business.
It would need to be recognized that it is not a magic, click of a button, overnight solution.
It takes time to learn the necessary business establishment steps. It takes more time and self discipline to further develop and grow an online business.
However the demographic that might produce prospective participants is full of appropriately qualified people. People with a high level of the necessary performance skills.
Consequently this would allow them to easily undertake online business development.
Retired life is not what they expected.
Teaching retirees about online business might help address a further problem. This is discussed by Mike Lewis in a recent Forbes article.
He notes that as many retirees discover, leaving one life to begin another is difficult.
Mike notes a May 2013 study by the UK’s Institute of Economic Affairs. This reports 40% of retirees suffer from clinical depression, while 6 out of 10 report a decline in health.
The truth is, even though most professionals look forward to retirement, the loss of a job can be unexpectedly traumatic.
According to psychologists, jobs provide mental health benefits.
# Feelings of contribution and being appreciated.
# The satisfaction of solving problems and learning new things.
# Relationships with fellow workers.
#Daily routines eliminating mental decisions about “what to do next.”
Mike Lewis notes the key to a positive retirement is to ensure these benefits don’t get lost, but are simply experienced in a different way.
Many retirement people will come from highly successful backgrounds.
They will be able to slide quickly and efficiently into a new role provided that the trainers and training is freely available.
We won’t enter the retirement pension crisis debate. Readers can decide for themselves. However teaching online business skills and activities is a potential solution for solving the retirement income crisis.
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