One of the biggest financial challenges Australians now face is funding their own retirement.
There are growing signs that the government pension will be available only to a select few through growing restrictions on its availability.
The 2015 Federal Budget has made further changes to who can access the government pension.
Due to our ageing population and pressure on the finances, the federal government has put restrictions on who can even access the part-pension in the Budget.
These latest restrictions on the pension are just one of a number that has occurred in recent years.
Already, the pension age is planned to be raised to 67 years between 2017 and 2023.
Well before the 2015 Budget, treasurer Joe Hockey indicated that not only could the pension age be raised to 70 but that the amount paid could also be limited. This sends a clear message to Australians that they cannot rely on a government-funded pension to see them through their retirement years.
The reality is that the federal government needs to review spending on their pension scheme, because it is predicted that the number of Australians aged from 64 to 84 will double from 2010 to 2050 while the number of people aged over 85 will quadruple.
As people are now living longer due to improvements in lifestyle and medical treatments, more money is now required to fund a person’s retirement.
That is why a growing number of people are now investing in property for long-term capital growth and rental income. That will give them an asset that continues to not only grow in value but also delivers high rental returns in their retirement years.
This reality about not relying on the government pension moving forward is now being appreciated by younger Australians.
A significant trend Professionals have recorded in the property investment market is the growing number of younger Australians who are now investing in property.
They realise that by the time they retire, the government pension as we know it today may no longer exist.