(A response about the recent changes to the government’s pension and hand-out policies)

Now, before I go any further, let me be clear. This article is not an article of support for the liberal party or the labour party or any bloody party. Frankly, I don’t care. This is an article about why I think some recent policy changes and announcements from the current Australian government is healthy for the psychology of the majority of Australians and for future generations to create financial freedom and to live the lives they want.

You may have read recently that Tony Abbott and Joe Hockey are embarking on a new budget to get rid of the massive debt Australia is currently in and as they put it, a process to change the psychology of the Australian public, which is that, everyone is responsible for this debt and getting rid of it.

Specifically:
  • Tax rates are changing
  • Raising the age of the aged pension to 70 years old, and
  • No dole payments for people under the age of 25

take-control-img1Now whether I agree with these policies or not, is not the point. What I do agree with is the need to change the psychology of the majority of Australians which is an entitlement mentality with a healthy dose of instant gratification thrown in for good measure.

People feel that because they were born or moved into such an amazing country and just because they were given life in the first place in this day and age, that they are entitled to certain things in life, from our country, from the government, from their employer or from their boss or whatever it is.

It is this mentality that I do not agree with and itis what hurts so many people from living out the lives they were put here to live.

Millions will whinge, bitch and complain about these policy changes. This is pure victim mentality about what they should and should not expect and deserve just because they are alive. Let’s get something clear.

You don’t deserve anything, just the air you breathe, and the brain and heart you have and the freedom to create the life you want. That is it.

I believe the world is entitled to expect something from you, however, and from each of us. We are given this great gift called life and all of the tools within us to leave the world just that bit better or perhaps a lot better because you existed; what a gift and what a responsibility.

So truth be told, these policy changes are the best things that could happen and it is time for us to raise our standards and take control.

Do you actually know what the rates are for the aged pension? It is $19,000 for a single person! That is it. Now when you started out your working career, did you picture in your mind, “well I am going to work for the next 40 years of my life and then I am going to retire and live the good life”.

Do you remember that rule of how life is supposed to be? Now did you picture the good life as $19,000 per year? Is that the dream life you imagined? I doubt it, but unfortunately it is the reality for the vast majority of retirees.

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Now, you can of course blame the government for paying a low pension rate, but seriously get a grip. We are all adults, some more responsible than others, but our finances should be our responsibility. So, this isn’t even a stab at the government and their payment rates. What it is really about is raising our standards and designing our ideal life. As right now, standards for retirement and even how we spend our lives are low.

Here is something else interesting about what is considered to be a comfortable retirement. I’ve included a break down from The Association of Superannuation Funds of Australia (ASFA) about what income is considered a comfortable income for retirement. It is $23,000!

Modest lifestyle – single
Modest lifestyle – couple
Comfortable lifestyle – single
Comfortable lifestyle – couple
Housing – ongoing only $63.40 $60.86 $73.48 $85.18
Energy $42.98 $57.09 $43.62 $59.16
Food $75.64 $156.69 $108.06 $194.51
Clothing $17.96 $29.15 $38.87 $58.30
Household goods and services $26.57 $36.03 $74.75 $87.57
Health $38.59 $74.48 $76.56 $135.12
Transport $95.78 $98.49 $142.73 $145.44
Leisure $73.93 $110.14 $224.03 $307.01
Communications $9.61 $16.82 $26.41 $33.61
Total per week $444.46 $639.74 $808.51 $1,105.91
Total per year $444.46 $33,358 $42,158 $57,665

The pension or even a so-called comfortable retirement on the above income is anything but safe. The only safe path that exists is to become financially independent and be your own source of safety through you taking action and making financial freedom a part of your life.

Raising the aged pension age to 70 and publicly stating that Generation X and Y should not expect any help from the government in retirement now means that every day Australians have to step-up and take control of their own financial lives, create their own financial security and become independent. This means that it is time to finally time to take more control of our own lives. This is a powerful thing, as it is actually breaking a system of control the government has long held over the public; that if they are good citizens, pay their taxes and play it safe, they will be taken care of. What is no more, you can’t play it safe the old way because that way is now risky (and in actual fact, it always was).

Think how amazing this is for the psychology of Australia? We are now being taught that it is up to us to take care of ourselves! Now many of you reading this know that this is true already and you are already thinking differently to the majority. Understand you are weird, complete and utter weirdos and I love you for it, because I am too :) take-control-img3

I want to touch on one more policy change coming through about how kids and young adults now can’t get unemployment benefits until the age of 25. What a triumph that is. Time to break another pattern of behaviour long held about the entitlement mentality and now young people have to get up and do something if they want to eat. Through this they will have to raise their standards and fundamental change in anything always starts with raising standards. Now of course it is always best for us to come to that conclusion for each of our own lives, but if it takes a swift kick from a big boot then, meh….whatever gets the change going.

Here is the point: stop expecting, start giving, adding value and contributing. That is what you are here for.
Stop hiding your gifts away and living a life less than what you were put here to live.

We are taught so often in life to just play it safe, get a job and work hard. Then, one day you can retire and live the good life. Not any more, it is up to you to create your own financial security and independence. This is such an important culture to change within a country. Just imagine if everyone took control of their own lives, and the discipline, the motivation, the education that took place, the investment mentality which would ensue; how much value that could add to each individual’s lives and the country overall?

Other interesting reads:

Lazy Money

Understanding Debt and How to Free Yourself From it Pt. 2

Does Money Equal Success?


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1 Comments

  1. Bernadette Mitchell

    Help, I would like to go to one of your lectures but i live in tassie when are you heading this way,?
    would love your guidance to a better life,for me,
    Bernie

    Reply

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