‘The pension won’t be there in 20 years’ – a property expert’s shocking warning
- Replies 2
When it comes to planning for retirement, the stakes are high. It’s no secret that relying solely on government support might not be the safest bet.
With that in mind, one expert is sounding the alarm on what could be a reality check for many Aussies.
Investor and property expert Sam Gordon has issued a stark warning to those who haven't invested in property and are planning to rely on the pension during their retirement.
Gordon recently attracted widespread attention after his property investment firm’s Christmas party stirred controversy online. The event, hosted by Australian Property Scout on Sydney Harbour, featured a video on social media where staff shared how many investment properties they owned.
The video sparked a divided response, with some viewers finding it aspirational and others branding it tasteless. Mr Gordon, who owns 108 properties, expressed that some of the criticism felt offensive.
‘I know some people found it in poor taste but I am proud and humbled,’ he told news.com.au.
One comment branded the video ‘crass and selfish’, a criticism Gordon found unjust.
‘It is crass and selfish to rely on the government to pay you a pension when you retire,’ he argued.
Gordon explained that his firm’s goal is to help people build passive income so they can retire independently, without needing the pension.
‘We just want to help as many Australians as possible,’ he said.
The purpose of the video was to demonstrate that the people providing property advice at his firm have also invested in property and to showcase their success to current and potential clients.
In Australia, the maximum amount a retired person receives for the aged pension is quite modest. For singles, it is $27,224 per year, and for couples, it is $41,043 per year.
‘Imagine retiring on $29,000 a year? That is unliveable,’ he said.
Gordon warned that Australians must start planning for their financial futures. He pointed out that 2.8 million people aged 65 and over currently receive income support payments, with 92 per cent relying on the Age Pension.
Gordon called that level of support ‘unliveable’ and likened it to being on ‘life support’—just enough to survive but not enough to thrive.
‘Our mission is to retire people on what they make now. So people can continue to live the life they want and not have to turn to life support,’ he said.
He added that most of his clients are ordinary people, earning between $70,000 and $100,000, who are determined ‘to create something better for themselves’ and get in a position where they’re not reliant on government assistance.
Gordon also voiced concern over the future of the pension.
‘I don’t think the pension is going to be there in 20 years,’ he said.
He stressed the importance for young Aussies to start considering their financial futures now, as he believes the government may not be able to sustain current levels of support in the years to come.
Money expert Angus Kidman shared his view. He acknowledges that while the age pension only provides for a ‘basic’ standard of living, he doesn't foresee it disappearing anytime soon.
‘It would be a very brave government that would try to eliminate the age pension, and I don’t see that happening in the next 20 years,’ he said. ‘However, it’s the reality now that the age pension alone only supports a very basic standard of living. In 20 years time, when the proportion of older Australians will be even higher, it’s likely the pension won’t be enough to survive on, even with indexation rises.’
‘Scarily, many Australians aren’t aware of this or planning for a better retirement, with more than a quarter of us completely unaware of how much we can expect to hold in our superannuation,’ he finished.
Your insights could help others plan their financial futures and make informed decisions for a secure retirement. How do you feel about Gordon’s advice? What financial tips about retirement would you give to young ones? Are you relying on the pension, or have you taken steps to secure your future in other ways? Share your thoughts and experiences in the comments below!
With that in mind, one expert is sounding the alarm on what could be a reality check for many Aussies.
Investor and property expert Sam Gordon has issued a stark warning to those who haven't invested in property and are planning to rely on the pension during their retirement.
Gordon recently attracted widespread attention after his property investment firm’s Christmas party stirred controversy online. The event, hosted by Australian Property Scout on Sydney Harbour, featured a video on social media where staff shared how many investment properties they owned.
The video sparked a divided response, with some viewers finding it aspirational and others branding it tasteless. Mr Gordon, who owns 108 properties, expressed that some of the criticism felt offensive.
‘I know some people found it in poor taste but I am proud and humbled,’ he told news.com.au.
Investor Sam Gordon has issued a warning to those who haven’t invested in property. Image source: @samgordonproperty on Instagram
One comment branded the video ‘crass and selfish’, a criticism Gordon found unjust.
‘It is crass and selfish to rely on the government to pay you a pension when you retire,’ he argued.
Gordon explained that his firm’s goal is to help people build passive income so they can retire independently, without needing the pension.
‘We just want to help as many Australians as possible,’ he said.
The purpose of the video was to demonstrate that the people providing property advice at his firm have also invested in property and to showcase their success to current and potential clients.
In Australia, the maximum amount a retired person receives for the aged pension is quite modest. For singles, it is $27,224 per year, and for couples, it is $41,043 per year.
‘Imagine retiring on $29,000 a year? That is unliveable,’ he said.
Gordon warned that Australians must start planning for their financial futures. He pointed out that 2.8 million people aged 65 and over currently receive income support payments, with 92 per cent relying on the Age Pension.
Gordon called that level of support ‘unliveable’ and likened it to being on ‘life support’—just enough to survive but not enough to thrive.
‘Our mission is to retire people on what they make now. So people can continue to live the life they want and not have to turn to life support,’ he said.
He added that most of his clients are ordinary people, earning between $70,000 and $100,000, who are determined ‘to create something better for themselves’ and get in a position where they’re not reliant on government assistance.
Gordon also voiced concern over the future of the pension.
‘I don’t think the pension is going to be there in 20 years,’ he said.
He stressed the importance for young Aussies to start considering their financial futures now, as he believes the government may not be able to sustain current levels of support in the years to come.
Money expert Angus Kidman shared his view. He acknowledges that while the age pension only provides for a ‘basic’ standard of living, he doesn't foresee it disappearing anytime soon.
‘It would be a very brave government that would try to eliminate the age pension, and I don’t see that happening in the next 20 years,’ he said. ‘However, it’s the reality now that the age pension alone only supports a very basic standard of living. In 20 years time, when the proportion of older Australians will be even higher, it’s likely the pension won’t be enough to survive on, even with indexation rises.’
‘Scarily, many Australians aren’t aware of this or planning for a better retirement, with more than a quarter of us completely unaware of how much we can expect to hold in our superannuation,’ he finished.
Your insights could help others plan their financial futures and make informed decisions for a secure retirement. How do you feel about Gordon’s advice? What financial tips about retirement would you give to young ones? Are you relying on the pension, or have you taken steps to secure your future in other ways? Share your thoughts and experiences in the comments below!
.png){kind=icon}
