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!

 

[Dizzy]

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!

 

[Dizzy]

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.

 

[reecekru]

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!

 

[reecekru]

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.

 

[Lukey]

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

 

[Macarj]

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.

I feel your pain all happened to me I never thought I would have to rely on a Government pension either

 

[Spudz]

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!

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 and all those who are doing it tough, please don't give up hope. The money markets are just like life, one day your up and the next your down. There is support out there, we all here you and we're listening

 

[Cheezil]

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.

So sorry you have gone thru all of this! I've read that we are all only a day away from being homeless, that is how quickly things can change with our finances!
I'm glad to be single now by choice as that eliminates one risk factor (after paying out 2 property settlements, along with about 10 failed relationships in total, I've finally learnt that lesson.
If things can change for the worse they can also change for the better (I secured a well paying job th at was shiftwork when I was 40yo & was there until an injury 6 months before my 60th birthday- fortunately our eba provided income protection insurance built in to our wage & was able to access that until recovery 18 months later. The income from that job helped me pay out the 2 exes allowing me to keep my home (with 2 young kids, this was a life line) & helped me pay off my mortgage to eventually own my home outright about 2yrs ago. It was damn hard work & very tough budgeting but that's what got me thru some really devastating times in my life.
There is usually light at the end of a very dark tunnel, keep on believing!

Edit; Lukey I've been in your shoes with very bad mental health also, life can be pretty cruel but the sun keeps shining & tmoro always gives us hope! Things can & often do change tho we think it's impossible when enduring the crap life throws at us!

 

[terri]

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

Dont give up Lukey. As hard as life can be and as sad as you feel, there is always someone listening. Reach out and feel them.

 

[Jennylolo]

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.

I assume you are referring to self funded retirees. As not all retirees have their own homes, may not have assets and are actually on a pension. And if they had super doesn't mean they still have any. I know many who are retired and are on full pensions, relying solely on this. And it won't take long before I am on full pension only too.

 

[grays]

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.

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.

 

[grays]

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.

 

[JayKay]

It is harsh to be unfairly treated.
I am in a similar situation.
When I married, I bought and paid for our first home outright with my savings.
Later, we built our "dream home", and our children were at private schools.
My husband is a sexual deviant and a mysogynist, therefore I am a victim of domestic violence.
When my daughter was abused by her father, I was blamed.
The only way out for my husband was divorce. (At least I am still alive.)
My husband stole everything that belonged to me.....including all our shares.
I ended up with a small suitcase of clothes.
I have no photos, none of my childhood treasures, none of my 21st presents....he destroyed the lot to hurt me.
I have not had contact with my daughter since 1994.....her father has such control over her, she can't break free.
Having lost all my property, I have to exist on the pension, and I still have a huge Family Court account to get custody of my son, which I am paying off.
I have to remember, the most important things in life are not things.

 

[Groovy]

My heart is with all of you who have suffered so much in life. Those who never went through so much, cannot understand that pain and unhappiness. We all have sad times in life through out the years, but some, really have if tough. May a ray of sunshine brighten your life, everyone.

 

[mylittletibbies]

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.

So sorry for you, life can be a bitch sometimes.

 

[Franko]

I don’t understand the point of the article. The Australian Age Pension is set by legislation, indexed for inflation and hasn’t changed except for the indexed increases in living memory. Certainly we are still below the poverty line, but none of the factors mentioned in the article have any relevance for Government pensioners.

Or is the article about self-funded retirees? In which case the link in your newsletter and your headline are both misleading and should come under the heading of investment news.

 

[Shoeb]

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.

 

[Ezzy]

Well stated & l am sure there are plenty of us here in that boat.

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.w

 

[Ezzy]

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.