Number of older Australians drowning in debt on the rise

How can we improve the prognosis for our maturing Australians? Suggestions, ideas, proposals for better social and health issues, including retirement accommodation, etc.

Moderators: godfather, Dreamweaver

Post Reply
User avatar
Perrorist
Administrator
Posts: 4360
Joined: 17 Sep 2008, 12:36
Location: Tumbi Umbi, Central Coast, NSW
Contact:

Number of older Australians drowning in debt on the rise

Post by Perrorist » 16 Oct 2018, 08:37


User avatar
Dreamweaver
Global Moderator
Posts: 9292
Joined: 16 Sep 2005, 15:46
Location: Victoria

Re: Number of older Australians drowning in debt on the rise

Post by Dreamweaver » 16 Oct 2018, 09:16

The National Debt Helpline — a federal government-run financial counselling service — said it's on track to receive a record number of cases through its call centres this year — many from older Australians who can't meet their mortgage or rent payments.
"The phones just never stop now," financial counsellor Greg said.

"They're just going day after day, after day.

"You put the phone down, you pick the phone up again."

Greg has been with the call centre for 14 years.

He said it's never been so busy, now with record numbers of older Australians calling in, unable to pay rent, or make good on their mortgage repayments.
I dream, therefore I am.

User avatar
kfchugo
Bronze Member
Posts: 1548
Joined: 11 May 2015, 19:03
Location: Lake Macquarie NSW

Re: Number of older Australians drowning in debt on the rise

Post by kfchugo » 16 Oct 2018, 15:36

Our government and many younger taxpayers now seem to view older Australians as a burden. How soon they forget that the majority of us have worked (and paid taxes) all our lives and helped to make Australia what it is today. Admittedly there are some who have not managed their finances wisely throughout there lives and must rely on welfare in their declining years. For many however, they are in that situation simply through life's misfortunes.....death of loved ones, divorce, illness, unemployment, supporting offspring etc., etc. Australia lags behind many other nations who value the contribution and sacrifices of their elderly and have welfare systems that give people a dignified lifestyle.
Many older Australians now find themselves on the financial scrap heap and live hand-to-mouth by borrowing or imposing on their kids who are often also struggling. It is now a real stretch to call Australia "the lucky country".

User avatar
Perrorist
Administrator
Posts: 4360
Joined: 17 Sep 2008, 12:36
Location: Tumbi Umbi, Central Coast, NSW
Contact:

Re: Number of older Australians drowning in debt on the rise

Post by Perrorist » 16 Oct 2018, 16:44

We should move to Japan where they treat their elderly with a degree of reverence, unlike in Western democracies where once you stop earning a living you're seen as a liability.

User avatar
Dreamweaver
Global Moderator
Posts: 9292
Joined: 16 Sep 2005, 15:46
Location: Victoria

Re: Number of older Australians drowning in debt on the rise

Post by Dreamweaver » 16 Oct 2018, 20:17

A Japanese student in Aussie told me of the New Year picnics in the mountains, when the grandparent goes off for a walk. One year they will not return, and are not looked for. It is accepted that they will die there, their wishes respected of not becoming a burden to their families, as families honoured the tradition of caring for their elderly. In 1942 the government introduced age pensions, contributed to by those aged 20 to 59 (I think), so things have been changing.
Aging and retirement of the labor force
As Japan's population aged, so did its workforce. In 1990 about 20% of the work force was made up of workers aged 55 and over. The Ministry of Labor predicted that by 2000 about 24% of the working population (almost one in four workers) would be in this age-group. This demographic shift brings about both macroeconomic and microeconomic problems. At the national level, Japan is having trouble financing the pension system, and the future of the pension system was a major topic in the 2005 House of Representatives election. At the corporate level, problems include growing personnel costs and the shortage of senior positions.

In most Japanese companies, salaries rise with worker age. Because younger workers are paid less, they are more attractive to employers, and the difficulty in finding employment increases with age. This pattern is evidenced by the unemployment rates for different age-groups and by the number of applicants per job vacancy for each age-group in openings handled by public employment offices. As the Japanese population ages, such trends may grow.

Most Japanese companies require that employees retire upon reaching a specified age. During most of the postwar period, that age was 55. Because government social security payments normally begin at age 60, workers are forced to find reemployment to fill the five-year gap. However, in 1986 the Japanese Diet passed a law to provide various incentives for firms to raise their retirement age to 60. Many Japanese companies raised the retirement age they had set, partly in response to this legislation. And despite mandatory retirement policies, many Japanese companies allow their employees to continue working beyond the age of 60, although generally at reduced wages. People over 60 continue to work for varied reasons: to supplement inadequate pension incomes, to give meaning to their lives, or to keep in touch with society.

As Japan's population ages, the financial health of the public pension plan deteriorates. To avoid massive increases in premiums, the government reformed the system in 1986 by cutting benefit levels and raising the plan's specified age at which benefits began from 60 to 65. Under the revised system, contributions paid in equal share by employer and employee were expected to be equivalent to about 30% of wages, as opposed to 40% of wages under the old system. However, problems then arose in securing employment opportunities for the 60-to-65 age group.

In 1990 some 90% of companies paid retirement benefits to their employees in the form of lump-sum payments and pensions. Some companies based the payment amount on the employee's base pay, while others used formulas independent of base pay. Because the system was designed to reward long service, payment rose progressively with the number of years worked.
More here - https://en.wikipedia.org/wiki/Elderly_people_in_Japan
I dream, therefore I am.

User avatar
kfchugo
Bronze Member
Posts: 1548
Joined: 11 May 2015, 19:03
Location: Lake Macquarie NSW

Re: Number of older Australians drowning in debt on the rise

Post by kfchugo » 17 Oct 2018, 17:01

It is a sad state in any country, but especially developed nations, where death is the only real financial alternative to staying alive.

Post Reply