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Boomers Greed. 72% would rather spend their money than leave an inheritance.
Topic Started: 19 Sep 2014, 05:55 PM (7,152 Views)
ThePauk
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peter fraser
20 Sep 2014, 10:53 PM
OK fair enough, lets not concern ourselves with that.

Demographers like to call generations by names to define them, but the changes are gradual and rolling. Is there really any difference between a young boomer and an old Gen X - seriously I doubt it. people don't join tribes based solely on their age bracket.

So what we are looking at is a demographic that is larger than the previous demographic, but similar to the following demographics based on size.

The generations that preceded the boomers were smaller. They established an worker/dependant ratio that worked quite well for them and they paid an aged pension.

When the boomers all entered the workforce that ratio changed, but now it's going to change back but not as low as it was in the pre WW2 days because women have entered the workforce en-masse since then. What effect do you think millions more workers (women) might have on the ratio?

So all this panic about agequake you have been lying awake at night over is a waste of energy - it's quite a flawed theory.

I don't know the exact outcome, I don't have the research capability, but when I look at the hysteria I se on some sites, it just doesn't sound logical, and it simply isn't.

I'm not saying that there won't need to be adjustments, but some of the conversations and OP's on this subject have just been way off the mark and quite silly.

If the pre WW2 generations can do it and make sure that everyone was looked after in a much more austere period of time, then we shouldn't have an issue.


Peter
It is about longevity increases and what that means to the support ratios, not so much about what follows.
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peter fraser
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ThePauk
20 Sep 2014, 11:31 PM
Peter
It is about longevity increases and what that means to the support ratios, not so much about what follows.
true, and Gen X and Y will live even longer, so the real issues are yet to come, but nevertheless the worker dependency ratio will be similar to previous generations, just not as good as it was for the last few decades.

Such is life.
Any expressed market opinion is my own and is not to be taken as financial advice
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Sober
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ThePauk
20 Sep 2014, 09:40 AM
Given that 72% of boomers do not want to leave any inheritance then it is a very solid case to raise the GST.
Complete nonsense.

:lol :lol :lol
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peter fraser
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Sober
21 Sep 2014, 07:44 AM
Complete nonsense.

:lol :lol :lol
Paul bless his heart wants lower house prices, something that many people support. But to achieve that he believes that loading up the GST by another 5% (taking it to 15%) would somehow bring them down, ignoring the fact that GST is loaded into everything including the cost of building blocks in our new suburbs.

As a GST registered business owner I and others like me can get a refund of a lot of the GST cost on items such as fuel, computer equipment, commercial property, new cars etc, but the average guy is just screwed, he can't get anything back.

The lack of comprehension of the cost inputs is breathtaking.
Edited by peter fraser, 21 Sep 2014, 08:08 AM.
Any expressed market opinion is my own and is not to be taken as financial advice
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ThePauk
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peter fraser
20 Sep 2014, 11:41 PM
true, and Gen X and Y will live even longer, so the real issues are yet to come, but nevertheless the worker dependency ratio will be similar to previous generations, just not as good as it was for the last few decades.

Such is life.
Peter
Nothing like previous generations.

http://archive.treasury.gov.au/documents/1185/images/chart5.gif

Posted Image

The aged cost more than the youth.
Edited by ThePauk, 21 Sep 2014, 10:03 AM.
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Garden Variety
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herbie
20 Sep 2014, 11:11 PM
Yeah, I'm old fashioned too - Which is why I didn't ask if you could bring your girlfriend. :)
You,re a scholar and a gentlemen ... i tip me hat to ya.
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skamy
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ThePauk
20 Sep 2014, 06:20 PM
Peter
The Lucky generation intend to leave an inheritance and the oldest boomer is only 68. No point asking the seniors as we know what they intend to do. I have provvided proof that the boomers feel differently. You can accept that or reject it, it matters not to me.
This is just wrong Pauk, the previous generation were not prepared for their longevity and most of my elderly relatives who had saved hard for retirement now live in almost poverty with aging homes and cars that they struggle to maintain. I have seen people who had owned several properties selling and spending most of it on care, as they live longer with these greater needs.

It has been a big motivator for the large savings you see the boomers have built up. I am not so much concerned about leaving an inheritance to my kids as concerned that they are not put to any expense to support our care needs if they arise in later life. It is a rare boomer indeed who has not had to support elderly relatives at some stage. The boomers have also financially supported their kids well into their 20s, yet they still have substantial savings.

Your silly ideas about increasing the tax burden on older people are so naive it is not funny. Do you seriously believe this money would go back to more hand outs to young people?



doubleview
20 Sep 2014, 07:33 PM
I'm not sure what your getting @ bud, I think its the shear numbers of boomers that are the problem!

I know what u are saying however there aint any point to your post!

Are u talking about mining?
There are more Gen xers
Posted Image
Australian population by age and sex (demographic pyramid) as of 01 July 2013
ThePauk
21 Sep 2014, 09:53 AM
Peter
Nothing like previous generations.

http://archive.treasury.gov.au/documents/1185/images/chart5.gif

Posted Image

The aged cost more than the youth.
Prove it. Health care costs may go up but education goes down. I reckon it would be a closer run than you think especially as so many elderly people fund their own health care.
Edited by skamy, 24 Sep 2014, 12:32 AM.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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ThePauk
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Perhaps you should read the IGR.

http://archive.treasury.gov.au/igr/igr2010/default.asp

http://archive.treasury.gov.au/igr/igr2010/report/html/05_Chapter_4_Ageing_pressures_and_spending.asp
Figure 4.2 should set you straight...
Edited by ThePauk, 24 Sep 2014, 10:45 AM.
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herbie
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ThePauk
24 Sep 2014, 10:42 AM
That IGR covers 40 years - From 2010 when it was written(?) out to 2050.

So it basically covers the full retirements of all of the BBs; Maybe about half the retirement period of all of the Gen Xs (on average); And even the beginning retirement years of an awful lot of the Gen Ys would be my punt.

Yet, it is the BBs that you seem determined to specifically target as being 'the problem'. Despite the fact that the population pyramid clearly shows that there are rather less BBs by birth year on average than either Gen Xs or Gen Ys.
Edited by herbie, 24 Sep 2014, 11:42 AM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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ThePauk
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herbie
24 Sep 2014, 11:27 AM
That IGR covers 40 years - From 2010 when it was written(?) out to 2050.

So it basically covers the full retirements of all of the BBs; Maybe about half the retirement period of all of the Gen Xs (on average); And even the beginning retirement years of an awful lot of the Gen Ys would be my punt.

Yet, it is the BBs that you seem determined to specifically target as being 'the problem'. Despite the fact that the population pyramid clearly shows that there are rather less BBs by birth year on average than either Gen Xs or Gen Ys.
Herbs
Any changes to the asset test would remain for all the following generations.
Paying a full or part pension to multi-millionaires is wrong and must stop.
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