I’m a parent of three kids in Australia, and feeling the cost of living challenge, despite being among the higher earning households in the country. I worry that if things are as challenging as they are for us, what must they be like for so many others trying to raise kids today? It’s no wonder birth rates are at all-time lows.
Amidst our struggles, the Government in their wisdom requires my partner and I to put around $30k per annum into super that we can access when we’re 65. The problem is that i’d like my $35k now, not in 25 years. Frustrating, but i don’t think it’s going to change.
This leads me to something i’ve been thinking about. What if, at certain stages of life (say, when families have school aged children) workers were able to redirect a portion (or all) of their compulsory super contributions to investment in their housing assets?
This would ensure people are saving for the future, it would act as targeted cost of living relief, would meaningfully shift preferences around having kids, and come at ZERO public cost.
I’ve never heard this raised as a potential policy, but it seems like a good one. Thoughts?
They way we're managing this in our mid-50's is to maintain a mortgage and pay as little off as possible, but use those funds (the balance that we're not paying off our mortgage) to live a life, support our young adult children etc etc. When my wife and I retire and get our Super back, we will use that to pay off our mortgage and live off whatever remains (even it it means having to downsize etc). That way, we're supporting our kids when they need it as young adults, and enjoying life as much as we can reasonably afford (responsibly) while we still can. Travel etc becomes limited once you hit 65-70 yo. Read a book called 'Die with Zero', very enlightening.
Interesting comments. I too come from a similar background and I blog on the NZ market where almost every comment Ben makes applies to NZ. I am also in the middle of researching and writing a story on the NZ Accommodation Supplement, very similar to the rental assistance Ben discusses, with similar problems and success. I try to target the misinformation of politicians and the press but it’s a losing battle, they don’t want to talk to me, real data is not shocking
Great discussion.
I’m a parent of three kids in Australia, and feeling the cost of living challenge, despite being among the higher earning households in the country. I worry that if things are as challenging as they are for us, what must they be like for so many others trying to raise kids today? It’s no wonder birth rates are at all-time lows.
Amidst our struggles, the Government in their wisdom requires my partner and I to put around $30k per annum into super that we can access when we’re 65. The problem is that i’d like my $35k now, not in 25 years. Frustrating, but i don’t think it’s going to change.
This leads me to something i’ve been thinking about. What if, at certain stages of life (say, when families have school aged children) workers were able to redirect a portion (or all) of their compulsory super contributions to investment in their housing assets?
This would ensure people are saving for the future, it would act as targeted cost of living relief, would meaningfully shift preferences around having kids, and come at ZERO public cost.
I’ve never heard this raised as a potential policy, but it seems like a good one. Thoughts?
They way we're managing this in our mid-50's is to maintain a mortgage and pay as little off as possible, but use those funds (the balance that we're not paying off our mortgage) to live a life, support our young adult children etc etc. When my wife and I retire and get our Super back, we will use that to pay off our mortgage and live off whatever remains (even it it means having to downsize etc). That way, we're supporting our kids when they need it as young adults, and enjoying life as much as we can reasonably afford (responsibly) while we still can. Travel etc becomes limited once you hit 65-70 yo. Read a book called 'Die with Zero', very enlightening.
That makes sense. It is funny how the expected "financial life" pattern never seems to match you "actual life financial needs"!
I need to make sure my parents never find this book.
Interesting comments. I too come from a similar background and I blog on the NZ market where almost every comment Ben makes applies to NZ. I am also in the middle of researching and writing a story on the NZ Accommodation Supplement, very similar to the rental assistance Ben discusses, with similar problems and success. I try to target the misinformation of politicians and the press but it’s a losing battle, they don’t want to talk to me, real data is not shocking
Johnbutt.substack.com.