The Australian government will increase the age pension from 65 to 70 by 2035(Australian Department of Human services [AU]). This announcement has lots of challenges for Australian people who are under 50; some people support the rise and find it beneficial for the future economical life. However, others are against the announcement as it has lots of concerns for their future plan, as they have to work longer to save more for their retirement. The current population ageing put pressure on the young workers who support retirees and their families, at the same time it affect the economic development. So the rise of pension has advantages and disadvantages on the future life standard of most Australians. It is beneficial decision from the government to provide a productive and qualified future life.
Pension provides an income when people have stopped working. Also, it provides important forms of insurance against long life, prices, relative benefit drops and savings shocks. As well as it is an important benefactor to the financial security of a majority of Australian men and women of retirement age, with about 70 per cent of people of pension age receiving the Age Pension (Australia and Treasury, 2015). The government can provide this type of insurance for less than it costs individuals to insure themselves by sharing long life risk, and hedging the
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It is important for people that they have to leave the labor force when they would actually like to carry on in their jobs, supporting the retraining of older workers, helping people with young children stay employed, changing disability rules so that partially disabled people can work while receiving some benefits and through many other policies. Doing this is not only good for the economy, but would prove popular too by giving people jobs who want them. Few people leave work due to health or other conditions. (Sanderson,
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
Patrick, C 2004, The Guardian: Australia may hold key to pensions, 12 October 2004, retrieved 21 July 2006
An aging population is indeed a problem for the society and will possibly cause many social and economic difficulties in the future. According to David Foot (2003), professor of Economics at University of Toronto, an effective birth rate of 2.2% against current 1.75% will be necessary to replace the current work force in the near future and the government’s policy of bringing in more immigrants will eventually fail (Foot, 2003, 2). However some people predict that the increased size of an aging population will drive growth in the home, health care, and many other industries resulting in job creation and economic growth (Marketwire, 2013, 1). Majority of the people are of the opinion that the issue will be mainly in the health care and economic activity. As humans age, they start to develop health problems, leading to more visits to a medical clinic putting extra burden on health care system.
Australia’s aging population is mainly the result of a boom in fertility rates during the post WWII period, also with an increase in life expectancy rates present at birth. However, as our aged population grows so does the number of higher risks for certain illnesses and diseases. In Australia, there are an increased percentage of aged people who are living with chronic illnesses and disabilities, which raises the demands for specific health care services, impacting on our health care system. With the high demands for the health-care services, there is a lack in financial resources in order to provide for these services, along with shortages within the workforce.
Mail workers from external organizations do not receive the benefit of a defined pension plan. The new standard for pensions has moved to contribution based pension plans. If Canada Post intends to follow this trend, they will need to prove that this decision was reached fairly by proving the costs of the defined pension plan is unaffordable given the economic climate of low interest rates. However, Canada Post’s workers do not experience procedural justice as the CUPW argues that the defined pension plan will develop a surplus once interest rates rise and would continue to remain solvent afterwards. The CUPW’s argues that the defined plan will rebound in the near future “CPC spokespeople are always talking about the deficit in the Canada Post Pension Plan. But they never mention that the plan also has a huge surplus. And while the surplus is growing, the deficit is decreasing… there is no reason to believe the plan will be terminated. Solvency deficits are caused by low long term interest rates. Should (or when) interest rates go up by only 1%, the solvency issue will disappear entirely” The methods Canada Post used to propose a change the pension plan was considered unfair by the CUPW and the temporary solvency problems of the plan is only
The subsequent paragraphs contain a general analysis as well as a description of the legal questions and principles that were raised in the age discrimination case of Mckinney v. University of Guelph. This case raised the issue of whether a company or organization (in this case, a post secondary institution for education) should have jurisdiction over the age at which an individual must retire. Additionally, this document contains an analysis of the laws of mandatory retirement and how they are still currently in effect in countries such as China. Along with the aforementioned is a description of how mandatory retirement is imperative to population management,
Canadian pension, the plan that promises to provide a set income once retirement, passed during 1965 in order to make an effort for those who have great losses and are struggling with finance after retirement due to the great depression, disability, and death costs. The Canadian Pension Plan was used to help reduce the poverty levels in Canada when it was noticed that the poverty rate at an old age reached 72.5%. After the Canadian pension plan passed laws during 1965, the poverty rate of seniors reduced by 30% by 1976. It is clear to see how within a decade the poverty level has decreased by 52.5% thus further proving the efficiency of the Canadian Pension plan. This statistic denotes how a larger population of seniors were living with stable financing which continues today.
Policy reforms created by Government inquire and industry movements have assisted in the shaping of the current Australian superannuation industry today. In the first phase the superannuation rate increased from 4% to 9% between 1992 and 2002. Under more recent reforms, employers must now contribute at least 9.25% of payroll on behalf of their employees to a funded pension program which will incline to 12% by 2019. (Bateman and Mitchell,2001). Superannuation is a pension system used by Australians to save for
Whilst the price of an aging population are expected to be lower than has been advocated, the silver lining acknowledged in this paper is a product of the countless benefits and new prospects that are expected to arise as Australia’s largest ever generation of retirees approaches the age where they have the time, money, and experience to play an active and important role in Australian communities. This paper was grounded off the International Plan of Action on Ageing 2002, which was shaped by the United Nations which called for the vast possible of ageing in the 21st century to be entirely satisfied. Their goal was “persons everywhere are able to age with security and dignities and to continue to participate in their societies with full rights” So with this I believe that the source is credible in the sense that it shows a different perspective on how most theorise that an aging population would ultimately end badly, but this paper has raised some informative insights about how people tend to focus on the bad and not push forward for the better. This source emphasises that the demographics of an aging Australia is not necessarily as bad as what everyone predicts it to be.
As the insurance industry is becoming highly competitive, we should develop and promote a new innovative insurance product – Universal life (UL). Universal life insurance is a permanent life insurance plan with the benefits of tax-advantaged investing. UL allows policy owners the flexibility to customize the coverage and premiums based on their financial planning needs. I believe UL has a great potential in attracting individuals who: need life insurance want to actively manage their life insurance policy are concerned about wealth accumulation seek a tax-efficient way to protect their assets Unlike term insurance which provides temporary protection, UL aims to protect policy owners for life with a tax-deferred investment component. With universal life insurance, regular monthly deposits are made into the investment accounts chosen by the policy owner.
Unemployment is a bigger complication in America than what people really understand it to be. Despite the inventions of new technology and discovering new ways to do things, the underlying principles of why unemployment occurs remain the same. People let go from their jobs and there are some people who don’t even bother getting a job. But what people don’t know is that unemployment effects all of us. It causes problems for families that don’t try by complicating daily living expenses.
...efore, rather than losing the work force, there are more people who are now available to work efficiently and for a longer span because they have a better health, consequently, the aging individuals in the workforce can still be active. The use of modern medicine has greatly improved the economic sector of most countries using this technology.
The insurance is meant to cover the cost costs associated with long-term care for those who have had strokes, chronic diseases, or Alzheimer’s diseases, as well as those who can simply no longer manage to live on their own. It is imperative that I be able to reap the cost-benefits to of being protected against the financial consequences of the high cost due to increasing life expectancies and the resultant rise in the chance that you may eventually need some level of care. In short, creativity in decision making is vital to effective choices. Therefore, it is essential to consider all of the possible alternatives will help you make more efficient and favorable decisions. Moreover, when life events affect your financial needs, the financial planning process will provide a vehicle for adapting to those changes. Also, specific financial goals are vital to financial planning. Others can suggest financial goals for you; however, you must decide which goals to pursue. Your financial goals can range from spending all of your current income to developing an considerable savings and investment program for your future financial
The insurance paid by employers and employees won’t be enough to secure pension costs. Some people argue that migration can solve the problem of an ageing society, but this is an overestimation. The attraction of young and skilled immigrants to a country has almost always positive impacts on the age-structure of the country. They strengthen the workforce and therefore help towards funding the retired workers. Furthermore, they heighten the fertility rate in the country they immigrate. Unfortunately, migration alone cannot erase the looming danger of an ageing population. Yet, it certainly can slow the process down (Harper). Nevertheless, specialists expect an increase of retired people over 65 years by 35% to 50% during the next 20 years. In this case, contribution rates by the working forces would have to rise significantly from its current rate of 13% to over 18% in the United Kingdom. Nevertheless, there are proposals to solve this problem. If every worker had his own “pension fund” where he saves money for retirement himself, the dependence on the working youth could be reduced. The main difficulty with this method would be the current retired population that did not have the chance to save up for themselves but still need money to live (Read). Furthermore, the question remains what would happen to stay at home parents who don’t have an income because they spend their
Lots of working people are scared when comes planning for their retirement day, as well as there are some of them are confident to face theirs restful years. This people who fear with their retired age are the person whose are lack of knowledge about financial matters so they will ignore their planning for retirement as long as they can. The effect is, they will try to continue to work as long as they can work. Recently, the Ministry of Human Resource’s Malaysia, increase the retirement age to 60 years old for government sectors. As Hunt (2009) state that Malaysian confident for their retirement have decrease rapidly in some way. According to Lai Cheng Tung & Jean Dennis Comeau (2012) the people who agree with the new retirement age as they claim that they required more retirement savings, increasing retirement age will increase the life expectancy, and this provide retention of talent or improving skill proficiency especially in expert job that need longer years of experience to master it. To support more agreeableness in increasing retirement age, based from Life Insurance Association of Malaysia (LIAM), 5% and less than that percent are prepared completely for their retirement (Habib, 2007). All of the statement showed that Malaysian are still good enough to continue working even most of them are lately around 60’s as a period for preparing themselves before retired.