The Age Pension has become a highly important financial safety net for a vast majority of retirees across the globe in recent years.

Unfortunately for Australians, our already struggling pension system has just taken a massive financial blow, which could have dire consequences for retirees in the country.

According to data released by the Australian Prudential Regulation Authority on Tuesday, pensions in the country suffered the worst annual performance since the global financial crisis, losing a staggering total of $92.8 billion in the country's stock market in the June 30 financial year.

Australia's stock market lost an astounding $92.8 billion in investments during the fiscal year that ended on June 30th, which means pensions might be in danger of plummeting as well. Credit: Getty Images.

So what caused such a dramatic decline? Well, markets were roiled by the central banks aggressive rate hikes and the war in Ukraine, which led to a A$140 billion loss in investments during the June quarter alone.

This was particularly hard on pension funds because many of them had recently increased their allocations of stocks, right before prices started falling sharply. Cue a downturn.

Now, with global equity markets still reeling from these events, Australian pensions are bracing for more volatility – and many of them are moving their money into less risky investments like fixed income and cash.

Key Takeaways

• Pensions in Australia lost a significant amount of money in the fiscal year ending June 30, 2022.
• This is the worst performance for the pension industry since the global financial crisis.
• The performance was largely due to a sharp drop in equity markets in the second quarter of 2022.
• The slump was caused by fears of a slowing global economy and the central banks efforts to fight inflation.
• Pensions are bracing for more volatility in the future and have shifted their portfolios to include more cash and bonds.

This isn't good news for Aussie retirees who rely on the Age pension for their regular income. We encourage you to always diversify investments so that this news doesn't have a huge impact on your retirement plans. Better yet, speak to a qualified financial planner as Australia’s pensions are bracing for more volatility.

Additionally, we recommend checking out this article for some business ideas that you can try out to earn additional income.

You may also access the Money Saving Hacks section of the SDC website for more tips on how to manage your finances.

What are your thoughts, members? Are you worried about this news, or do you think that relying on pension is not the best idea for Australian retirees? Let us know in the comments below!

 

[Chris 56]

The Age Pension has become a highly important financial safety net for a vast majority of retirees across the globe in recent years.

Unfortunately for Australians, our already struggling pension system has just taken a massive financial blow, which could have dire consequences for retirees in the country.

According to data released by the Australian Prudential Regulation Authority on Tuesday, pensions in the country suffered the worst annual performance since the global financial crisis, losing a staggering total of $92.8 billion in the country's stock market in the June 30 financial year.

Australia's stock market lost an astounding $92.8 billion in investments during the fiscal year that ended on June 30th, which means pensions might be in danger of plummeting as well. Credit: Getty Images.

So what caused such a dramatic decline? Well, markets were roiled by the central banks aggressive rate hikes and the war in Ukraine, which led to a A$140 billion loss in investments during the June quarter alone.

This was particularly hard on pension funds because many of them had recently increased their allocations of stocks, right before prices started falling sharply. Cue a downturn.

Now, with global equity markets still reeling from these events, Australian pensions are bracing for more volatility – and many of them are moving their money into less risky investments like fixed income and cash.

Key Takeaways

• Pensions in Australia lost a significant amount of money in the fiscal year ending June 30, 2022.
• This is the worst performance for the pension industry since the global financial crisis.
• The performance was largely due to a sharp drop in equity markets in the second quarter of 2022.
• The slump was caused by fears of a slowing global economy and the central banks efforts to fight inflation.
• Pensions are bracing for more volatility in the future and have shifted their portfolios to include more cash and bonds.

This isn't good news for Aussie retirees who rely on the Age pension for their regular income. We encourage you to always diversify investments so that this news doesn't have a huge impact on your retirement plans. Better yet, speak to a qualified financial planner as Australia’s pensions are bracing for more volatility.

Additionally, we recommend checking out this article for some business ideas that you can try out to earn additional income.

You may also access the Money Saving Hacks section of the SDC website for more tips on how to manage your finances.

What are your thoughts, members? Are you worried about this news, or do you think that relying on pension is not the best idea for Australian retirees? Let us know in the comments below!d

I cannot comment on being a retiree as I was on a disability pension ,now a carers pension over 66 years of age and think that as we grow older I for one have a lot of medications,not all prescriptions which is horrendous,then to go around different supermarkets trying to get bargains and eat healthy, too be honest in our senior years shouldn’t we be able to relax a bit and not have to struggle,I wonder what it would be like to be up at the top and have everything handed to you ,would it be appreciated.

 

[Capsam]

Never ever did I expect to have to rely on government pension… but due to circumstances way beyond my control back in 2005 we refinanced our home loan, 2007 my husband died, and I went to jail for 14 months, another story.
because my husband had run up gambling debts I needed to pull in his super to pay for those debts, his life insurance then was $350k only paid $0.03cents in dollar because parent company got into financial difficulties and that’s what was offered. So I needed to sell our home because I could not work in my chosen career because of my Record and at 65 years of age retraining was not an option in those day. I sold house paid out all the debts left, found a unit to rent and opened a very small Fabric and Haberdashery in CN Qld. Because of the drought and tight budgets in farming communities I needed to supplement my income and applied for part pension. Now in 2022 I need to live with my son, so we can share expensive of 1 house pay rent over $400 a week, shop long gone now, and living on aged pension with nothing left to live on and at 73 YoA I am in a desperate state with no relief in site.
sorry for the ramble I just needed to let it out. Thanks M.

Take heart. You have your son by your side. May God bless you both.

 

[Capsam]

My brother came to live with me in mid 2020. That was a sad event as at 72 he was forced by health & Government to leave his wife in order to ensure she was housed! Another story! The reality is I rely solely on the aged pension. If it were not for a private rental agreement & my brother’s contributions I would probably have been out on the streets by now. You can budget all you like, do without even essentials, never afford a holiday but price hikes mean you are always left behind!

 

[tonymc55]

I think that shutting the world's economies down for two years, and destroying them in the process, might have a hand in this, just quietly.

 

[kiwidi29]

The Age Pension has become a highly important financial safety net for a vast majority of retirees across the globe in recent years.

Unfortunately for Australians, our already struggling pension system has just taken a massive financial blow, which could have dire consequences for retirees in the country.

According to data released by the Australian Prudential Regulation Authority on Tuesday, pensions in the country suffered the worst annual performance since the global financial crisis, losing a staggering total of $92.8 billion in the country's stock market in the June 30 financial year.

Australia's stock market lost an astounding $92.8 billion in investments during the fiscal year that ended on June 30th, which means pensions might be in danger of plummeting as well. Credit: Getty Images.

So what caused such a dramatic decline? Well, markets were roiled by the central banks aggressive rate hikes and the war in Ukraine, which led to a A$140 billion loss in investments during the June quarter alone.

This was particularly hard on pension funds because many of them had recently increased their allocations of stocks, right before prices started falling sharply. Cue a downturn.

Now, with global equity markets still reeling from these events, Australian pensions are bracing for more volatility – and many of them are moving their money into less risky investments like fixed income and cash.

Key Takeaways

• Pensions in Australia lost a significant amount of money in the fiscal year ending June 30, 2022.
• This is the worst performance for the pension industry since the global financial crisis.
• The performance was largely due to a sharp drop in equity markets in the second quarter of 2022.
• The slump was caused by fears of a slowing global economy and the central banks efforts to fight inflation.
• Pensions are bracing for more volatility in the future and have shifted their portfolios to include more cash and bonds.

This isn't good news for Aussie retirees who rely on the Age pension for their regular income. We encourage you to always diversify investments so that this news doesn't have a huge impact on your retirement plans. Better yet, speak to a qualified financial planner as Australia’s pensions are bracing for more volatility.

Additionally, we recommend checking out this article for some business ideas that you can try out to earn additional income.

You may also access the Money Saving Hacks section of the SDC website for more tips on how to manage your finances.

What are your thoughts, members? Are you worried about this news, or do you think that relying on pension is not the best idea for Australian retirees? Let us know in the comments below!

We are a helpful & caring little community on SDC & l rejoice in this 'Lifeline' as it is at times for some of us (& l include myself here). An opportunity to share with other members of our Nation Wide Community anonymously without fear of constraint. Good wishes together for better times ahead go to those who have shared their bad experiences with us here. Thankyou.

Most people here are pensioners or close to retirement. Some have been able to prepare for retirement & have Superannuation while others have been caught unprepared, having to retire unexpectedly. One thing we all have in common is the Govt. Pension. We may be reliant on this now or will in the future. I believe we all agree that this is not enough to live comfortably on if you do not own your own home, debt free & with some savings to fall back on in an emergency.

My stepmother (dad remarried following mum's death) was unable to claim a pension with assets around $2 million. I have worked for a self-funded retiree who was very frugal with money & always managed to holiday every year with a tour group. Not so for everyone l know, but l admire the fact that they were able to retire as a self-funded retiree. Unfortunately economic circumstances have eroded those savings for them & perhaps one day you will likely have to soldier through on a Govt. Pension too. I hope by that time the Govt. will have lifted their game & make retirement on a pension viable for you.

 

[kiwidi29]

My sole income is the pension and it’s getting harder and harder to survive. It is a life of survival only.

 

[Caky47]

Just about all the press is on how tough it is for Government pensioners - BUT, they at least get a Pension for nothing, with automatic rises, whereas Self Funded's get nothing other than what they can earn by way of interest and dividends all of which is subject to Deeming!

Having little help from those investments/interest in the last few YEARS where DEEMING has wiped out eligibilities.

Now this drop in the stock market is hitting particularly hard. My Super lost over 10% after "managment fees", in the last QUARTER! So much for earning an honest $ : no handouts available from Governments except the SENIORS CARD!

I like most other self funded retirees have to live off liquidating assets built up over 50 years! It will drive us all onto Pensions eventually but where is the incentive for ANYBODY to save for retirement when the Pensioner get's it all for free.

The Pension is not free people paid taxes if they had worked for years. I know it is hard in this World right now to get by. We did save during our working lives as well

 

[biribo]

Plenty said about retirees but not much for those who rely “totally” on the pension and don’t own property or assets or super or investments.

There never is. It's always about retirees with pension funds and self funded retirees getting part pensions never about the totally reliant Age Pensioner. As for going back to work. There are a plethora of age pensioners who cannot work due to health, and who have been rejected for the DSP, or ageing reasons and who aren't capable of working. These PENSIONERS are relegated to the below poverty existence that the powers to be reluctantly pay just for these people to stay alive ... this is the true underbelly of poverty.

 

[BabsL]

Superannuation began in 1987 for me, and bcz am female ws always on low wages. In 1990 was too I’ll to work for 4 yrs and cld only work short stints afterwards frm work acquired injuries, chronic stress and major depressive disorder which no one believed existed - women were called hysterical, neurotic and LIARS - never believed. Kennett’s clean out of WorkCare saw me dumped, and shattered. But I kept trying for temp jobs - 2 agencies told me I was too old - had had my turn and shld move aside so younger females cld get jobs. Surgery in 2002-03-04-05 did not help, and in 2009 diagnosed w late stage 3 bowel cancer. That forced my early retirement at 55 and all possible socialising stopped as 24/7 diahorrea forces you inside. 2 years stolen by despicable Daniel Andrews brought on agoraphobia. Recently suffered carbon monoxide poisoning frm flat below leaky heater. Extremely lucky to survive after 3 weeks of it leaking through broken brickwork.
At 68 not on Aged Pension, but on Disability pension, eroding what small superannuation is left after market downturns. Shd I be on the Aged Pension instead? I do hv a 21 yrs old car w broken engine mounts.

 

[Cezba]

I know exactly how you feel but probably not as in your circumstances. I suffer severe mental health issues and really feel it. would all be better if I was gone! Yep just gone,simply can’t cope anymore. Thanks for listening

Hi Lukey, I know it’s easy for me to say but please don’t think about being gone. It’s a permanent solution to what is temporary. A lot will scoff at this but nothing bad lasts forever, you could be a moment away from someone reaching out to you. Even with mental health issues, being here is important. We only get one shot at it and during a life time we feel pain emotionally as well as physically, but we also get to experience laughter and good things. While you wait to find someone reaching out for you, I ask that you reach out to as many people as you can for help. All the best

 

[Ezzy]

Hi Lukey, I know it’s easy for me to say but please don’t think about being gone. It’s a permanent solution to what is temporary. A lot will scoff at this but nothing bad lasts forever, you could be a moment away from someone reaching out to you. Even with mental health issues, being here is important. We only get one shot at it and during a life time we feel pain emotionally as well as physically, but we also get to experience laughter and good things. While you wait to find someone reaching out for you, I ask that you reach out to as many people as you can for help. All the best

Very true, as l am sure many of our readers (incl. me) can attest to. Hang in there my friend.
Our friends who write our articles are a good starting point for help as they have often stated.