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Holiday budgeting tips for over-60s: Expert advice for a stress-free season

<div> <p>The festive season is a time for joy, but it can sometimes also bring a little extra financial stress. With the rising cost of essentials, many Aussies in retirement might be feeling the pinch. And it’s not your imagination – recent <a title="https://protect.checkpoint.com/v2/___https:/nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.superannuation.asn.au%2Fmedia-release%2Frising-insurance-premiums-add-strain-to-retirees-finances-says-super-peak-body%2F*23%3A~%3Atext%3DThe%2520latest%2520figures%2520from%2520ASFA%2Cover%2520the%2520last%252012%2520months.&amp;data=05%7C02%7Cdardisa%40we-worldwide.com%7C3306a1dfb9de4e30dd3b08dcfecff5e5%7C3ed60ab455674971a5341a5f0f7cc7f5%7C0%7C0%7C638665416381860501%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&amp;sdata=3ePPI8b1SEXOATgcY6vYWJRi8gBzZHv0jM1dgqkIoUI%3D&amp;reserved=0___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YjM1NDo4YTdiNGQ5MTcwZjBhYzgwNzI4ZDVmYTlhNTA0OWVhYThkZTU0NWJhN2FhZDgzZGQ2MGQ1ZjZiYWU5MTc3MGI1OnA6VDpG" href="https://protect.checkpoint.com/v2/___https:/nam02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.superannuation.asn.au%2Fmedia-release%2Frising-insurance-premiums-add-strain-to-retirees-finances-says-super-peak-body%2F*23%3A~%3Atext%3DThe%2520latest%2520figures%2520from%2520ASFA%2Cover%2520the%2520last%252012%2520months.&amp;data=05%7C02%7Cdardisa%40we-worldwide.com%7C3306a1dfb9de4e30dd3b08dcfecff5e5%7C3ed60ab455674971a5341a5f0f7cc7f5%7C0%7C0%7C638665416381860501%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&amp;sdata=3ePPI8b1SEXOATgcY6vYWJRi8gBzZHv0jM1dgqkIoUI%3D&amp;reserved=0___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YjM1NDo4YTdiNGQ5MTcwZjBhYzgwNzI4ZDVmYTlhNTA0OWVhYThkZTU0NWJhN2FhZDgzZGQ2MGQ1ZjZiYWU5MTc3MGI1OnA6VDpG" data-auth="Verified" data-outlook-id="1a0a0a08-2e36-4601-a0a3-f9c8bb379afe">data</a> from the Association of Superannuation Funds of Australia (ASFA) reveals that the cost of maintaining a comfortable retirement has increased by 3.7% in the last year. For those in retirement, managing holiday spending can help ensure a stress-free festive season. </p> </div> <div> <p>Toby Perkins, a Certified Financial Planner® at industry superfund NGS Super, shares his helpful tips to ensure retirees manage their budgets during the holidays.</p> </div> <p><strong>1. Avoid personal debt</strong></p> <div> <p>Credit cards and overdrafts may seem like quick solutions, but they often lead to high-interest debt. "If you need extra funds for the festive season, it might be worth considering options like your superannuation income stream instead," advises Toby. Avoiding extra debt may help you to maintain your financial stability in the long run and help set you up for a stress-free Christmas next year. </p> </div> <p><strong>2. Plan ahead: Budget for the entire year</strong></p> <div> <p>Although it may be too late to adjust your budget for this holiday season, now is a good time to start planning for next Christmas. "Incorporating holiday spending into an annual budget can prevent financial strain in December," Toby suggests. By tracking your expenses throughout the year, you can identify potential savings and plan for any extra costs, such as gifts and travel.</p> </div> <p><strong>3. Review government entitlements</strong></p> <div> <p>It’s important for you to ensure you are receiving the correct government entitlements. "If you’re receiving the Age Pension, make sure all your details are up to date," Toby advises. Even if you're not eligible for the Age Pension, you may qualify for the Commonwealth Seniors Health Card or state-based Seniors Cards, which can help reduce costs on health care, transport, and other services. For more information, visit <a title="https://protect.checkpoint.com/v2/___https:/www.servicesaustralia.gov.au/most-useful-information-for-retirement-years___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6Y2YwMTo3YWJkZWYyYTY5NjAwZTQ5YjczNWQwMGY2ZjZmN2RhNzY5MzJjYWJkMmYyNWM5ZTkzODg4NTJlZDc3MmIwZGI1OnA6VDpG" href="https://protect.checkpoint.com/v2/___https:/www.servicesaustralia.gov.au/most-useful-information-for-retirement-years___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6Y2YwMTo3YWJkZWYyYTY5NjAwZTQ5YjczNWQwMGY2ZjZmN2RhNzY5MzJjYWJkMmYyNWM5ZTkzODg4NTJlZDc3MmIwZGI1OnA6VDpG" data-auth="Verified" data-outlook-id="0b03c4dc-e32a-4f0f-adaf-6d20058cd703">the Services Australia website.</a></p> </div> <p><strong>4. Stay vigilant about financial security</strong></p> <div> <p>There are two reasons to closely track your spending throughout the holiday season: 1. To ensure you stay within budget, and 2. To ensure you don't fall victim to financial scams. The holiday season can be a prime time for financial scams, so be cautious when making purchases online.</p> </div> <p><strong>5. Prepare for post-holiday financial health</strong></p> <div> <p>After the holidays, plan to set aside some money for future expenses or to replenish your savings. A bit of post-holiday planning will help you avoid financial stress in the months ahead - and even get you set up for next Christmas.</p> </div> <p><strong>6. Travel smart: Plan off-peak</strong></p> <div> <p>Travel can be one of the biggest holiday expenses, especially if it coincides with peak Christmas and school holiday periods. Toby recommends traveling outside of these busy times to save money. "Off-peak travel can significantly reduce costs and make your holiday dollar stretch further," he says. Consider planning trips in advance to secure better deals.</p> </div> <div> <p>Planning ahead, managing debt, and reviewing entitlements can help you enjoy the festive season without financial stress. As Toby puts it, "Smart budgeting today helps ensure a more comfortable retirement tomorrow."</p> </div> <div> <p><em><strong>For those seeking personalised advice, NGS Super’s team of financial planners is here to help guide you to a secure and joyful future. Read the <a title="https://protect.checkpoint.com/v2/r01/___https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/files/documents/financial-services-guide.pdf___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6MDk5ZToxNWJlNDQ0ODUwMWZmYzczYmUzZDY5N2NkNWFmY2M4ZTM0M2I5ZDQyNTI5ZGIwNjdjMDUxZDViY2E1YWRmYWFhOnA6VDpGHYPERLINK___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmM0OTdjMzdkZjcxOGIxNDQxYjdiMzQxMzA0NTcyMzc4Ojc6ZDgzMDowMTA3N2IxNTZmN2JhZDAzOTM5MDc4ODZjM2Y4NTUzYTkwNWE4ZDAxYmJhMmIxMTc0OWZjNjhmNmM5ODNlNzYyOmg6VDpG" href="https://protect.checkpoint.com/v2/r01/___https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/files/documents/financial-services-guide.pdf___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6MDk5ZToxNWJlNDQ0ODUwMWZmYzczYmUzZDY5N2NkNWFmY2M4ZTM0M2I5ZDQyNTI5ZGIwNjdjMDUxZDViY2E1YWRmYWFhOnA6VDpGHYPERLINK___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmM0OTdjMzdkZjcxOGIxNDQxYjdiMzQxMzA0NTcyMzc4Ojc6ZDgzMDowMTA3N2IxNTZmN2JhZDAzOTM5MDc4ODZjM2Y4NTUzYTkwNWE4ZDAxYmJhMmIxMTc0OWZjNjhmNmM5ODNlNzYyOmg6VDpG" data-auth="Verified" data-outlook-id="c4bb4623-ec0a-4e3a-a747-7bf0d2f5659b">NGS Financial Planning Financial Services Guide</a>.</strong></em></p> </div> <div> <p><em><strong>For further information, visit NGS Super’s <a title="https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/articles/news/whats-foro-what-can-you-do-about-it___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YzlhNDphZGM4Y2Q1YTFlZmQyNjExMGQ4ZDJmYWM3Y2IyOWMxM2FiNjE2MDMwMDc3YjA5ODE5OTY0NjQyYmZkNWE2NGM1OnA6VDpG" href="https://protect.checkpoint.com/v2/___https:/www.ngssuper.com.au/articles/news/whats-foro-what-can-you-do-about-it___.YzJ1OndlY29tbXVuaWNhdGlvbnM6YzpvOmMyMDk4YTI2ZGE5OWUzY2FhZWQ2Nzc5ZTg1YWM0OGJiOjY6YzlhNDphZGM4Y2Q1YTFlZmQyNjExMGQ4ZDJmYWM3Y2IyOWMxM2FiNjE2MDMwMDc3YjA5ODE5OTY0NjQyYmZkNWE2NGM1OnA6VDpG" data-auth="Verified" data-outlook-id="7c65864b-3f33-43bc-9037-cc1e7ca1acc0">website</a>.</strong></em></p> </div> <div> <p><em><strong>Toby Perkins is authorised to provide financial advice in Australia and is an Authorised Representative (Number 1002908) of Guideway Financial Services Pty Ltd, AFSL Number 420367. Any advice given in this article is general and does not consider your financial situation, needs or objectives so consider whether it is appropriate for you. Be sure to read the relevant PDS and TMD </strong><strong>before deciding whether a financial product is right for you.</strong></em></p> <p><em><strong>Image credits: Shutterstock  </strong></em></p> </div> <div> <p> </p> </div>

Travel Tips

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Grandma shares blunt advice for gift-giving season

<p>A grandmother has shared valuable advice for other grandparents who are prone to going over the top for birthday and Christmas presents. </p> <p>DeeDee Moore, who runs the TikTok account @morethangrand, reignited the debate on finding the line between spoiling your grandkids with an abundance of gifts, and not going over the top. </p> <p>With Christmas right around the corner, DeeDee shared some advice for grandparents before they hit the shops.</p> <p>"Too much stuff from grandparents is at the top of the list of topics that parents struggle with," Moore explained in a viral clip.</p> <p>A recent survey from <a href="https://www.morethangrand.com" target="_blank" rel="noopener">More Than Grand</a> found 75 percent of the parents surveyed, wished grandparents respected their wishes about gifts, for a few reasons, but the most common was the sheer volume of stuff.</p> <p>"Parents often don't have the physical space to accommodate the toys indulgent grandparents buy," she continued.</p> <p>However, the issue is that one grandparent probably isn't the only one going all out on gifts. </p> <p>"Say your grandson has four other grandparents and four aunts and uncles. Each of these people get him one gift for a second birthday. That's already nine gifts plus something for mum and dad. We're up to 10," she explained. </p> <p>"But if all of those grandparents buy him three things, and two of the aunts get him a little extra something, that's 22 presents for a two-year-old who would be just as happy with a box." </p> <p>Moore also pointed out while many kids are fortunate enough to be spoilt at Christmas, there are many children who are living in hardship and don't have the same luxuries. </p> <p>Her advice is to take some of the things you would have given to your grandchildren and donate them to a charity or organisation who works with less fortunate families.</p> <p>Dozens of mothers chimed in the comment section of the video, praising DeeDee's advice and sharing their own stress about presents. </p> <p>"I used to have so much anxiety about Christmas because my in-laws used to buy more than Santa, us and my parents combined. It was stressful," commented one mum. </p> <p><em>Image credits: Shutterstock</em></p>

Family & Pets

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Readers response: What’s the best advice you’ve received on staying healthy as you age?

<p>We asked our readers what the best advice they’ve received on staying healthy as you age is, and the response was overwhelming. Here's what they said. </p> <p><strong>Fred Pilcher </strong>- Don't smoke. That's the most important advice you're likely to get. If you do smoke, quit now. Today. I've lost parents and friends to lung cancer and emphysema - both terrible ways to go. (I say this as a former two pack a day addict.)</p> <p><strong>Kate Caddey</strong> - Stay as fit as you can. Walk, do the stretch, balance and dance offerings. Travel the slightly harder way with ups and downs included. Stay curious about people you meet and about everything in general. Never stop learning.</p> <p><strong>Marie Jones</strong> - Keep laughing.</p> <p><strong>Gloria Hickey</strong> - Keep active, but wish I had been told to have my B12 added to yearly blood work too. </p> <p><strong>Peter Connolly</strong> - Best advice I got was "Whatever you do, go out with a bang. There is absolutely no point in lying in bed in a hospital, dying of nothing!"</p> <p><strong>Terry Dolman</strong> - Enjoy being happy. It takes more energy to be grumpy than smile. Plus, a good Friend in Vietnam now said "don't carry the past plus a drink of whisky a day." </p> <p><strong>Heather Dixon</strong> - Keep busy.</p> <p><strong>Lydia Poli </strong>- Enjoy the ride while you can!</p> <p><strong>Marlene Cochrane</strong> - Don't stop moving. Both physically and mentally.</p> <p><strong>Karen Ambrose</strong> - Keep dancing!</p> <p><em>Image credits: Shutterstock </em></p>

Body

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Readers response: What advice would you give someone visiting Australia?

<p>We asked our readers what advice they would give to someone travelling to Australia, including where tourists need to see and what hidden gems cannot be missed. Here's what they said. </p> <p><strong>Peggy Rice</strong> - Respect our rules, the outback needs to be researched, swim between flags, don't swim with crocodiles. It's the best country in the world, let's keep it that way. Also do yourself a favour and put Tasmania on your list of beauty.</p> <p><strong>Kay L Bayly</strong> - Number 1 advice! Check distances between desired destinations. It is a much bigger country than most people understand.</p> <p><strong>Michael Pender</strong> - Bring a sense of humour.</p> <p><strong>Toni Stewart</strong> - You will need a year at least to see all the different areas from desert, scrub, rainforest, cities, beaches, country side fabulous little towns and lots of festivals.</p> <p><strong>Maureen Prince</strong> - We don’t have Kangaroos running the streets. Koalas are not in everybody's back yard trees. Whilst we do have snakes you’d be very unfortunate if you were to come across a venomous one. We don’t all go around saying “Good day mate”. Our scenery is incredible. Our food is superb and, best of all, we have good friends who do say “Good day mate”.</p> <p><strong>Tina Shaw</strong> - Leave preconceptions at customs. See who we are and you'll have a fantastic time.</p> <p><strong>Dianne Savage</strong> - Put Tasmania on your must do list.</p> <p><strong>Margaret Higgs</strong> - Use sunscreen, wear a hat, drink lots of fluids.</p> <p><strong>Cheryl Anne</strong> - Don't assume you can cover the whole country in 6 weeks.</p> <p><strong>Sarah Hayse-Gregson</strong> - Obey the beach culture. The flags, lifesavers are there for a reason. If a sign says, “beach closed” there’s no one to assist you if you get into difficulty. Our lifesavers are volunteers, don’t forget that. They give up their free time to monitor the beaches and are highly trained. Never turn your back to the sea.</p> <p><strong>Ann Lusby</strong> - Watch out for drop bears.</p> <p><em>Image credits: Shutterstock </em></p>

Domestic Travel

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"Completely out of touch" boomer slammed for housing advice

<p>An Aussie boomer has been slammed online after sharing advice for younger generations to buy a house, with her words of wisdom being labelled as "infuriating". </p> <p>The Sydney homeowner shared her matter-of-fact views when asked about her own property journey for a TikTok video by property app Coposit Street, who regularly hit the streets to ask people of all ages about their opinions on home ownership. </p> <p>The woman, who chose not to disclose her age or how much she has in savings, didn’t hold back when asked about younger Aussies, saying they “don’t make sacrifices” in order to break onto the property market. </p> <p>“When I was younger …. I never did brunches and partied and now (it’s what) they wanna do, she explained in the video, before admitting “it’s harder for them now”. </p> <p>“Things are so expensive but they can start off small. A lot of people buy places that are too big but you’ve got to make sacrifices.”</p> <p>When asked how she built her savings, she added, “I take my own lunch to work, I always have.” </p> <p>“If you want a place of your own, start small but make the sacrifices, do two jobs, work a lot. Don’t go out as much as you want to.”</p> <p>“I mean I feel sorry for the younger generation now because they’re thinking why bother because it’s too expensive, I’m just going to party and have a good time, which you can still do.”</p> <p>“When I entered (the property market) it was quite a while ago. I had a lot of difficulty because I was a single woman and I had prejudice against me so my father had to go guarantor and that was able to help,” she explained.</p> <p>“I had two jobs, I worked really hard. I was actually trying to save to go overseas and then I cancelled that and I was renting … and I thought, well, maybe if I saved a bit of money and worked hard, I could put a deposit down for myself.”</p> <p>These days, the woman acknowledged the cost of living in Sydney is “very expensive”, saying, “It’s terrible … Rents have all gone up and everyone’s willing to pay for everything so people are just thinking we’ll charge this and then everyone’s charging on top, and people aren’t getting assistance so it’s hard these days.”</p> <p>The woman's comments were met with a wave of backlash online, with many younger Australians calling her advice "infuriating". </p> <p>“We’ve turned our cars into taxis and our spare rooms into hotels to try and afford the same thing they had on a single income,” one person wrote. </p> <p>“How are people this completely out of touch?” another wrote. “Most of my mates have worked since 14/15 (years old), Not gone away internally (sic), have clacked out cars and still only scrape by. I’m 20 and I can’t even remember the last time I went clubbing.”</p> <p>“Yes not buying coffee is going to be enough to save for a house,” another sarcastically quipped.</p> <p>The woman's comments come after research conducted last year shows Gen Z and Millennials have a tougher path to buying a home than previous generations, with the latter facing mortgages 12 times their average income.</p> <p><em>Image credits: TikTok</em></p> <p style="box-sizing: inherit; border: 0px; font-stretch: inherit; line-height: inherit; font-family: 'Helvetica Neue', HelveticaNeue, Helvetica, Arial, sans-serif; font-size-adjust: inherit; font-kerning: inherit; font-variant-alternates: inherit; font-variant-ligatures: inherit; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-position: inherit; font-feature-settings: inherit; font-optical-sizing: inherit; font-variation-settings: inherit; font-size: 18px; margin: 0px 0px 24px; padding: 0px; vertical-align: baseline;"> </p>

Money & Banking

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The financial reality check after a major diagnosis

<p>Once you have received and processed your doctor’s diagnosis, take stock of the situation, because this will determine how you respond and what resources you have available to support you going forward.</p> <p>Who received the diagnosis – you or your spouse (if you have one)? Is it a terminal illness, chronic condition or treatable setback? </p> <p>If you are not yet retired, will you be able to keep working, need a period off work or will this bring forward your retirement? If leaving work temporarily, what are your prospects for re-entering the workforce? Will your partner need to leave their work to care for you (or vice versa)?</p> <p>Once you have clarified and considered this, spring into action as soon as possible.</p> <p><strong>Revisit your spending</strong></p> <p>Healthcare is expensive by any measure. </p> <p>Pensioners and healthcare card holders may get much or all of your treatment covered, but waiting times in the public system can be lengthy. For self-funded retirees, even with private health insurance, there can be considerable out-of-pocket costs: specialist visits, diagnostics, symptom management, physiotherapy and so on. </p> <p>Depending on the type of diagnosis, you may also need to modify your home (install ramps, railings etc.) and/or obtain specialist furniture and equipment. Then comes care requirements – private nurses, retirement living, hospice or palliative care.</p> <p>Your lifestyle may also change, and quickly. Your clothes and shoes may no longer fit if you lose weight rapidly. You may no longer be able to drive. You may need help with household chores – cleaning, cooking, gardening. Covering these requires money if you don’t have family and friends able to lend a helping hand.</p> <p>Carefully look at what supports your new reality demands and whether they will be one-off or ongoing expenses. Some things will need to be purchased, others could be hired to split the cost over the longer term. </p> <p><strong>Secure your income</strong></p> <p>Once you’ve established the impact on your ability to work and your spending needs, determine how you will pay for everything going forward.</p> <p>Your emergency fund can provide short-term cash if you need to stop working suddenly or fork out for large, unexpected bills. </p> <p>Depending on your age and circumstances, it may be worth bringing forward your retirement – allowing you to draw income from superannuation and focus more on your (or your partner’s) health.</p> <p>Check your insurances to see what claims you could make – having paid the premiums, now is the time make use of them. Relevant insurances include total permanent disability, income protection, trauma or critical illness cover. Meanwhile some life insurance policies may pay out based on a specialist’s diagnosis, unlocking much-needed funds sooner. Depending on your diagnosis, policy and the type of insurance, payouts may be a lump sum or smaller payments spaced out over time.</p> <p><strong>Update your estate plans</strong></p> <p>A major diagnosis typically elicits thoughts about mortality, legacy and how you want your loved ones to be provided for.</p> <p>Crucially, it may also influence factors such as guardianship of minors and pets while you are unwell/in hospital, Power of Attorney to cover important legal and financial decisions if you are incapacitated, and palliative care arrangements if required.</p> <p>Before heavy medications, surgeries or further deterioration of your health cloud your judgement, ensure your will and estate plans are updated to fully reflect your current needs and wishes.</p> <p><strong>Look after yourself</strong></p> <p>Stress, shock, anger and despair are common emotions to feel when faced with a major diagnosis. As such, it’s important you look after your mental and emotional wellbeing too.</p> <p>It needn’t cost a cent – you could look to free counselling services available such as Lifeline and Beyond Blue; a daily walk by the beach or through the local park; catching up with loved ones for support and companionship. </p> <p>Keeping your spirits up, as much as you can under the circumstances, can improve your quality of life while also helping you make clearer decisions about your health, finances and relationships – making it arguably the best investment of all.</p> <p>Back that up with sound legal, tax and financial advice. There is much to consider where insurance, superannuation, inheritances, Centrelink and more are involved, and you can’t know everything – especially when your focus is rightly elsewhere!</p> <p><em><strong>Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a></strong></em></p> <p><em><strong>Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.</strong></em></p> <p><em><strong>Image credits: Shutterstock </strong></em></p>

Money & Banking

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Readers response: What’s the best travel advice you’ve ever received?

<p>When planning a holiday, it's not unlikely to receive travel advice from others who have explored the world. </p> <p>We asked our readers to share the best travel advice they have ever received, and the response was overwhelming. Here's what they said.</p> <p><strong>Liz Mendygral</strong> - You must have travel insurance.</p> <p><strong>Nancy Rogers</strong> - Travel light and clever.</p> <p><strong>Anne Denise Houghton</strong> - If you are in a different country and see something you would really like to do, do it then as tomorrow you may miss the opportunity!</p> <p><strong>Deedee Cullum</strong> - Get off the beaten tourist track and meet the real people.</p> <p><strong>Karen Ambrose</strong> - When crossing the road in busy Vietnam cities, keep walking and the traffic will go around you. DON'T STOP!</p> <p><strong>Fran Cresswell</strong> - Pack what you think you will need then take out half of it!!</p> <p><strong>Bill King</strong> - Respect the customs of the country you are visiting.</p> <p><strong>Lorraine Kirkwood</strong> - Pack a spare set of clothes and Pjs in your cabin luggage. When your suitcases get lost you are ok.</p> <p><strong>Chris Walker</strong> - Go while you can.</p> <p><strong>Terry Dolman </strong>- Book your flight way ahead. Saves mega $$.</p> <p><strong>Denise Sutherland</strong> - Where your passport is concerned NEVER BEHAVE BADLY, save that for your backyard.</p> <p><em>Image credits: Shutterstock</em></p>

Travel Tips

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10 signs you’re not on the right financial path

<p>Dreaming of owning a big house, nice car and a boat? Or just having enough cash to be comfortable?</p> <p>Here are 10 signs that you are not (yet) on the path to financial freedom.</p> <p><strong>1. You don't think about ways to make extra money</strong></p> <p>If you are paid a salary and nothing more, you are limited in the ways you can get ahead. The only way to save is to spend less. But if you switch it up and start to look for ways to earn more, your horizons open up. Most of the world's super wealthy have more than one income stream – some of which are usually passive, requiring no regular input. This could be something such as rental income from an investment property or the sale of a product such as an ebook. Add in some sensible savings habits and you will be on your way.</p> <p><strong>2. You leave your savings in a savings account</strong></p> <p>If you stick your cash in a savings account, it is basically doing nothing. You are better to look at ways to put that money to work. You could put it in a managed fund, buy shares or even lend it out via a peer-to-peer platform, to get a better return. Make sure you get good advice to understand what you are doing.</p> <p><strong>3. You borrow to buy</strong></p> <p>Borrowing to buy a house is fine. Borrowing to buy a car is (generally) not. If you are putting all your purchases on finance or credit card and paying them off with high rates of interest, you are pouring money down the drain. Live within your means if you want to get rich.</p> <p><strong>4. You don't know where your money goes</strong></p> <p>The first step to getting on the right track is to have a clear idea of what you're spending money on. If you don't know, chances are you're wasting it.  Have a look through your recent bank statements, draw up a budget. Stamp out some discretionary spending and you'll have more of that money to put to work that we mentioned earlier.</p> <p><strong>5. You're putting off planning for your retirement</strong></p> <p>If you think you are too young to have to worry about the future, you are doing yourself a huge disservice. When you are working towards a long-term financial goal, such as retirement, time is a huge asset to have on your side. The power of compounding means that any returns you make in a vehicle such as your KiwiSaver account then attract their own returns, over and over each year until you withdraw the money. The later you start saving, the more of that compounding power you miss.</p> <p><strong>6. You hate risk</strong></p> <p>It is great to be careful with your money but if you never take a risk, you miss out on returns. Over the long term, the biggest gains are usually from riskier investments, such as equities. You may also find ways to wealth by getting out of your comfort zone. Quitting your job and starting a new business is risky and scary, but could pay off if you have planned it well and know your stuff.</p> <p><strong>7. You don't have a plan</strong></p> <p>If you don't know how you're going to get rich, it probably isn't going to happen. Write down your goals. What do you want to achieve this week, month and year? What about in 10 years? If you can, identify someone who is in a position you'd like to get to and find out what they did to get there. Work out what you need to do to follow suit and break it down into small, achievable steps.</p> <p><strong>8. You don't pay yourself first</strong></p> <p>If you have decided to save money and think you'll just put aside everything that is left in your account at the end of the month, you will be horribly disappointed. This method almost always fails because there is invariably nothing left. Pay yourself first. Using your budget and plan, put aside the amount that you have worked out you can afford to save as soon as you get paid, and then live off the rest.</p> <p><strong>9. You think you're bad with money</strong></p> <p>It's a self-fulfilling prophecy. If you think you are bad with money, you won't pay any attention to your finances and they will get out of control. Stop thinking money is some sort of secret club that you could not possibly understand. Everyone can get a handle on it.</p> <p><strong>10. You don't know the basics</strong></p> <p>But having said that, it's important to get a good knowledge of the basic stuff. If you are not clear how your credit card works, or how your mortgage interest is calculated, get someone to help you break it down and bust the jargon. Websites such as Sorted have good tools or you can seek financial advice from your bank or an adviser.</p> <p><em>Image credits: Shutterstock </em></p> <p><em>Written by Susan Edmonds. First appeared on <a href="http://www.stuff.co.nz/" target="_blank" rel="noopener"><strong><span style="text-decoration: underline;">Stuff.co.nz</span></strong></a>. </em></p>

Money & Banking

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Readers response: What’s your best advice for managing medications while travelling?

<p>When taking a trip, many people often have to factor in how their changing schedule will affect their regular medication routines. </p> <p>We asked our readers for their best advice on managing medications while travelling, and the response was overwhelming. Here's what they said.</p> <p><strong>Kristeen Bon</strong> - I put each days tablet into small ziplock bags and staple them at one corner. All that goes into one larger ziplock bag and into my toilet bag. I store all the outer packs flat into another ziplock bag and that stays in the zip pack with my first aid kit in the main suitcase. I travel long haul up to six times a year and this is the most manageable way I have found.</p> <p><strong>Diane Green</strong> - Firstly, take sufficient  supply of all meds to last the time I'm away. I separate morning medications and evening medications. Then it depends on how long I'm away. I have one that needs to be refrigerated. Depending on where I travel, this can entail arranging overnight in the establishment fridge while taking a freezer pack for daytime travel.</p> <p><strong>Irene Varis</strong> - Always get a letter from my doctor, with all my prescriptions for when I get overseas. Saves you a lot of trouble!</p> <p><strong>Helen Lunn</strong> - Just get the chemist to pack into Medipacks. I usually take an extra week. I alway put some of the packs in my partners baggage incase my bag goes missing and a pack and a doctor’s letter in my hand luggage.</p> <p><strong>Jancye Winter</strong> - Always pack in your carry on with prescriptions.</p> <p><strong>Jenny Gordon</strong> - Carry a letter from doc with all medications, leave in original packaging. Double check that it isn’t illegal to carry your medication as some countries have strict regulations for things like Codeine. Always carry in carry on as you don’t want them to get lost.</p> <p><strong>Nina Thomas Rogers</strong> - Be organised with all your medicines before you leave.</p> <p><em>Image credits: Shutterstock </em></p>

Travel Tips

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More Australians are using their superannuation for medical procedures. But that might put their financial health at risk

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/neera-bhatia-15189">Neera Bhatia</a>, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a></em></p> <p>A record number of Australians are accessing their superannuation early on compassionate grounds, mainly to fund their own medical procedures – or those of a family member.</p> <p>Some 150,000 Australians have used the scheme in the last five years. Nearly 40,000 people <a href="https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/super-statistics/early-release/compassionate-release-of-super">had applications approved</a> in 2022-23, compared to just under 30,000 in 2018-19 – an increase of 47%.</p> <p>Some people think this flexible use of funds is a good way to ensure people can fund their own medical needs. But more transparency and better oversight is needed.</p> <h2>What are compassionate grounds?</h2> <p>Since July 2018, the Australian Tax Office has administered the early release of superannuation – meaning before <a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/super-withdrawal-options#Preservationage">retirement</a> – under certain circumstances, including compassionate grounds.</p> <p><a href="https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/access-on-compassionate-grounds/expenses-eligible-for-release-on-compassionate-grounds">Compassionate grounds</a> for you or your dependant (such as child or spouse) are:</p> <ul> <li>medical treatment or transport</li> <li>modifying your home or vehicle to accommodate special needs for a severe disability</li> <li>palliative care for a terminal illness</li> <li>death, funeral or burial expenses</li> <li>preventing foreclosure or forced sale of your home.</li> </ul> <p>The medical treatment must be for a life-threatening illness or injury, or to alleviate acute or chronic pain, or acute or chronic mental illness.</p> <p>The treatment cannot be “readily available” through the public system. Cosmetic procedures are excluded.</p> <p>You also have to prove you cannot afford to pay part or all of the expenses without accessing your super, for example, by spending your savings, selling assets or getting a loan.</p> <p>People who can access other funding for the expense, such as via the <a href="https://theconversation.com/lists-of-eligible-supports-could-be-a-backwards-step-for-the-ndis-and-people-with-disability-236578">National Disability Insurance Scheme</a>, are ineligible.</p> <h2>Why are people using this scheme more?</h2> <p>The ATO has not explained what is driving the surge. General cost-of-living pressures may play a role. People may have fewer savings to draw on for medical procedures.</p> <p>But the treatments most commonly being accessed using superannuation – fertility treatments, weight loss surgeries and dental care – point to other systemic issues.</p> <p>There have long been issues with IVF and <a href="https://theconversation.com/why-isnt-dental-included-in-medicare-its-time-to-change-this-heres-how-239086#:%7E:text=The%20real%20reason%20dental%20hasn,has%20a%20structural%20budget%20problem.">dental care</a> not being readily available or funded in the public health system.</p> <p>Weight loss surgeries (including <a href="https://www.mayoclinic.org/tests-procedures/bariatric-surgery/about/pac-20394258">bariatric surgery</a>) can help combat potentially life-threatening conditions such as heart disease. Recent <a href="https://www.monash.edu/news/articles/fewer-australians-having-bariatric-surgery-monash-university-led-report">research</a> suggests there has been an overall drop in the number of Australians having bariatric surgeries since 2016. But of those, 95% are performed through the private system.</p> <p>While early access to super can provide individuals access to critical treatment, there are issues with how compassionate grounds are defined and regulated.</p> <h2>Lack of clarity</h2> <p>As my co-author and I <a href="https://www.unswlawjournal.unsw.edu.au/wp-content/uploads/2021/06/Issue-442-PDF-3-Bhatia-and-Porceddu.pdf">have shown</a>, the vague wording of the <a href="https://www.legislation.gov.au/F1996B00580/2022-09-28/text">Superannuation Industry regulations</a> leaves them worryingly open to interpretation.</p> <p>For example, the meaning of “mental disturbance” is not defined.</p> <p>You may not meet the criteria of having an acute or life-threatening illness, or acute or chronic pain. But if you can show a certain condition causes you acute mental disturbance, you may qualify to release your superannuation early.</p> <p>People accessing their superannuation for IVF use this criterion, for example, by arguing they need to access funds to continue treatment and alleviate the acute mental distress caused by ongoing infertility issues.</p> <p>Two registered medical practitioners are each required to submit a report demonstrating the treatment is needed, and one must be a specialist in the field in which the treatment is required. However, the regulations do not specify clearly that the specialist should have relevant qualifications.</p> <p>In the IVF example, this means the specialist opinion can be provided by a fertility doctor rather than a mental health expert – and that person may stand to profit if they later also provide treatment.</p> <h2>A closed-loop system</h2> <p>Conflict of interest is another major issue.</p> <p>There is nothing in the regulations to stop a medical practitioner – such as a dentist – being involved in all steps and then financially benefiting. They could encourage a patient to access superannuation for a treatment, write the specialist report and then also receive payment for the treatment.</p> <p>Some clinics <a href="https://www.theguardian.com/australia-news/2024/apr/06/online-ads-promote-simple-access-to-super-to-pay-for-healthcare-despite-strict-rules">promote</a> accessing superannuation as an option to pay for expensive treatments.</p> <p>This raises important questions about the independence of the process, as well as professional ethics.</p> <p>Medical practitioners making recommendations for early release of superannuation should be doing so on genuinely compassionate grounds. But the potential for exploitation remains an ethical concern, when a practitioner can financially benefit from recommending early access to nest egg funds.</p> <p>Transparency around potential <a href="https://theconversation.com/people-are-using-their-super-to-pay-for-ivf-with-their-fertility-clinics-blessing-thats-a-conflict-of-interest-161278">conflicts of interest</a> are impossible to ensure without proper oversight.</p> <h2>What is needed?</h2> <p><strong>1. Mandatory financial counselling</strong></p> <p>The ATO <a href="https://www.theage.com.au/healthcare/worrying-trend-record-number-of-australians-raid-super-to-fund-medical-treatments-20240920-p5kc44.html">has warned</a> accessing super early is not “free money”, with a spokesperson urging people to get financial advice. But the law should go a step further and make this compulsory. That way people making decisions during an emotionally charged moment can understand any future implications.</p> <p><strong>2. Tightening of the criteria</strong></p> <p>Greater clarity in the legislation – such as defining “mental disturbance” – would help prevent loopholes being exploited.</p> <p><strong>3. Better oversight</strong></p> <p>Less health-care industry involvement would promote greater transparency and independence. An independent body of medical practitioners could assess applications rather than practitioners who could financially benefit if applications are approved. This would help alleviate perceived and actual conflicts of interest.</p> <p>Accessing superannuation early may be the only option for some people to start a family or access other life-changing medical care. But they should be able to make this decision in a fully informed way, safeguarded from exploitation and aware of the implications for their future.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/239588/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/neera-bhatia-15189"><em>Neera Bhatia</em></a><em>, Associate Professor in Law, <a href="https://theconversation.com/institutions/deakin-university-757">Deakin University</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/more-australians-are-using-their-superannuation-for-medical-procedures-but-that-might-put-their-financial-health-at-risk-239588">original article</a>.</em></p> </div>

Money & Banking

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Retirement doesn’t just raise financial concerns – it can also mean feeling unmoored and irrelevant

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/marianne-janack-681018">Marianne Janack</a>, <a href="https://theconversation.com/institutions/hamilton-college-2966">Hamilton College</a></em></p> <p>Most discussions of retirement focus on the financial aspects of leaving the workforce: “<a href="https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/top-10-ways-to-prepare-for-retirement.pdf">How to save enough for retirement</a>” or “<a href="https://www.businessinsider.com/personal-finance/investing/when-can-i-retire">How do you know if you have enough money for retirement</a>?”</p> <p>But this might not be the biggest problem that potential retirees face. The deeper issues of meaning, relevance and identity that retirement can bring to the fore are more significant to some workers.</p> <p>Work has <a href="https://www.theatlantic.com/ideas/archive/2023/03/work-revolution-ai-wfh-new-book/673572/">become central to the modern American identity</a>, as <a href="https://www.theatlantic.com/atlantic-editions/">journalist Derek Thompson bemoans</a> in The Atlantic. And some theorists have argued that work shapes what we are. For most people, as business ethicist <a href="https://www.luc.edu/quinlan/faculty/algini.shtml#:%7E:text=About,the%20Society%20for%20Business%20Ethics.">Al Gini</a> argues, one’s work – which is usually also one’s job – <a href="https://doi.org/10.4324/9780203950555">means more than a paycheck</a>. Work can structure our friendships, our understandings of ourselves and others, our ideas about free time, our forms of entertainment – indeed our lives.</p> <p>I <a href="https://www.hamilton.edu/academics/our-faculty/directory/faculty-detail/marianne-janack">teach a philosophy course about the self</a>, and I find that most of my students think of the problems of identity without thinking about how a job will make them into a particular kind of person. They think mostly about the prestige and pay that come with certain jobs, or about where jobs are located. But when we get to <a href="https://plato.stanford.edu/entries/existentialism/">existentialist philosophers</a> such as <a href="https://plato.stanford.edu/entries/sartre/">Jean-Paul Sartre</a> and <a href="https://plato.stanford.edu/entries/beauvoir/">Simone de Beauvoir</a>, I often urge them to think about what it means to say, as the existentialists do, <a href="https://philosophynow.org/issues/115/On_Being_An_Existentialist">that “you are what you do</a>.”</p> <p>How you spend 40 years of your life, I tell them, for at least 40 hours each week – the time many people spend at their jobs – is not just a financial decision. And I have come to see that retirement isn’t just a financial decision, either, as I consider that next phase of my life.</p> <h2>Usefulness, tools and freedom</h2> <p>For Greek and Roman philosophers, <a href="https://search.worldcat.org/title/Work-what-it-has-meant-to-men-through-the-ages/oclc/780872063">leisure was more noble than work</a>. The life of the craftsperson, artisan – or even that of the university professor or the lawyer – was to be avoided if wealth made that possible.</p> <p>The good life was a life not driven by the necessity of producing goods or making money. Work, Aristotle thought, was an obstacle to the achievement of the particular forms of excellence characteristic of human life, like thought, contemplation and study – <a href="https://classics.mit.edu/Aristotle/nicomachaen.7.vii.html">activities that express</a> the <a href="https://classics.mit.edu/Aristotle/nicomachaen.8.viii.html">particular character of human beings</a> and are done for their own sake.</p> <p>And so, one might surmise, retirement would be something that would allow people the kind of leisure that is essential to human excellence. But contemporary retirement does not seem to encourage leisure devoted to developing human excellence, partly because it follows a long period of making oneself into an object – something that is not free.</p> <p>German philosopher Immanuel Kant distinguished between the value of objects and of subjects by the idea of “use.” Objects are not free: They are meant to be used, like tools – their value is tied to their usefulness. But rational beings like humans, who are subjects, are more than their use value – <a href="https://search.worldcat.org/title/5796114">they are valuable in their own right</a>, unlike tools.</p> <p>And yet, much of contemporary work culture encourages workers to think of themselves and their value <a href="https://www.simonandschuster.com/books/Bullshit-Jobs/David-Graeber/9781501143335">in terms of their use value</a>, a change that would have made both Kant and the ancient Greek and Roman philosophers wonder why people didn’t retire as soon as they could.</p> <h2>‘What we do is what we are’</h2> <p>But as one of my colleagues said when I asked him about retirement: “If I’m not a college professor, then what am I?” Another friend, who retired at 59, told me that she does not like to describe herself as retired, even though she is. “Retired implies useless,” she said.</p> <p>So retiring is not just giving up a way of making money; it is a deeply existential issue, one that challenges one’s idea of oneself, one’s place in the world, and one’s usefulness.</p> <p>One might want to say, with Kant and the ancients, that those of us who have tangled up our identities with our jobs have made ourselves into tools, and we should throw off our shackles by retiring as soon as possible. And perhaps from the outside perspective, that’s true.</p> <p>But from the participant perspective, it’s harder to resist the ways in which what we have done has made us what we are. Rather than worry about our finances, we should worry, as we think about retirement, more about what the good life for creatures like us – those who are now free from our jobs – should be.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/233963/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/marianne-janack-681018">Marianne Janack</a>, John Stewart Kennedy Professor of Philosophy, <a href="https://theconversation.com/institutions/hamilton-college-2966">Hamilton College</a></em></p> <p><em>Image </em><em>credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/retirement-doesnt-just-raise-financial-concerns-it-can-also-mean-feeling-unmoored-and-irrelevant-233963">original article</a>.</em></p> </div>

Retirement Income

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Readers response: What advice would you give to seniors looking to start a new relationship?

<p>When entering the dating world, there are always nerves, expectations and excitement at any age.</p> <p>But when it comes to dating and starting new relationships in your senior years, priorities can be skewed, and meeting someone can be nerve-wracking. </p> <p>We asked our readers what advice they would you give to seniors looking to start a new relationship, and the response was overwhelming. Here's what they said. </p> <p><strong>Judy Chappell</strong> - Don’t! Nothing better than independence &amp; freedom late in life after 63 years married. I have my kids, grandkids, great grandies &amp; great friends that’s enough for me. Don’t need another male around.</p> <p><strong>Jan Heggie</strong> - If it feels right, do it. If it doesn’t feel right after a while, leave. Life is too short to not enjoy it.</p> <p><strong>Karen Simpson Nikakis</strong> - Put legals in place to protect your assets, do not cohabit or marry, and split all bills. </p> <p><strong>Lois Hone </strong>- Be true to yourself. Choose someone who completes you, the one person you feel you can’t live without. The one person, who makes you smile, laugh and is still there when you are sad and hurt and wants to support you. Oh and if they like to cook and clean as well, go for it!</p> <p><strong>Julie Fause</strong>r - Live each in your own home.</p> <p><strong>Marilyn Langelaar </strong>- Do not compare to previous partner.</p> <p><strong>Janet Olsson</strong> - Be careful. Don't rush into anything.</p> <p><strong>Lynn Dilley</strong> - Just go for it if you are happy and feel safe, but keep your money and documents to yourself.</p> <p><strong>Merle Finlayson</strong> - Go for it! It’s never too late.</p> <p><strong>Margot R McCamley </strong>- Enjoy the relationship, but there are always buts so tread carefully. Think it through thoroughly, but don't dismiss it as folly.</p> <p><em>Image credits: Shutterstock</em></p>

Relationships

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Peter Overton's heartfelt advice on Father's Day

<p>In the delightful chronicles of the Overton family, one thing has become abundantly clear: Peter Overton absolutely adored witnessing the close bond between his father, John, and his daughters, Allegra and Giselle. It was a sight that not only warmed his heart, but reassured him that the family ties would endure through generations.</p> <p>Overton has often reflected on his father’s age – nearly 87 – and marvelled at how John and his mother still live in the family home where Peter himself grew up. Even at 58, Peter couldn't help but beam with pride when talking about his parents. “They loved all their grandchildren,” he told <a href="https://honey.nine.com.au/parenting/fathers-day-2024-peter-overton-interview-fatherhood-two-daughters/f39eb07c-f966-4bcf-bc74-0e78c69d8458" target="_blank" rel="noopener">NineNews</a>, “but Allegra and Giselle were the youngest, and they talked to them every day.”</p> <p>This Father's Day just gone, however, held special significance. The family hadn’t seen each other "for a while", and Peter knew it was high time they rectified that. The plan? A simple yet heartwarming meal of barbecue chickens and salad, enjoyed together at his parents' home. "We're going to buy barbecue chickens and salad and go over and sit with them," Peter had said in the days leading up to Father's Day, “because he's been an amazing mentor and friend and dad to me. He's an extraordinary, extraordinary human."</p> <p>As Peter reminisced, he couldn’t help but hope that his daughters would hold him in similar regard. “I hope my girls see that in me,” he said, “and I’m sure they do.” Peter has always been a hands-on dad, always encouraging open communication and making sure Allegra and Giselle know they can talk to him and his wife Jess Rowe about anything without fear of judgment.</p> <p>Peter has often recalled how his father had been a great communicator, even with the demands of his career as a professor of paediatric anaesthesia for 40 years. Peter remembered the early mornings when, after a night out, he and his siblings would cross paths with their father in the backyard. “Where are you going, Dad?” they’d ask, only to hear about some emergency with sick kids being flown in from Dubbo. Despite his busy job, John had never taken his eye off his children.</p> <p>Now, as a father of two daughters, Peter has found himself similarly devoted. He's currently been teaching his eldest, Allegra, how to drive. “She’s got about 50 hours down,” he brags, though not without a hint of stress: “I’ve ripped out the grab handles in the car from stress,” he admits, only half-jokingly. It's all part of life’s passage; the gradual letting go as children navigate their teenage years.</p> <p>Peter understands the delicate balance of being there for his daughters while allowing them the freedom to make their own choices, and yes, even mistakes. “You’ve got to let them fly, don’t you?” he says, with a wisdom that can only come from years of parenting. He and Jess have certainly found that balance, even as they continue to support their daughters through the ups and downs of school and teenage relationships.</p> <p>And while there are many special memories the close-knit family have shared, Peter often recalls the days when his daughters were born as the most precious. “I remember both of them vividly,” he says, describing how he could still feel the weight of newborn Allegra in his hands as he proclaimed, “It’s a girl!” And with Giselle, born via emergency cesarean, he cherished the moment he held her skin-to-skin while Jess was tended to.</p> <p>These moments, etched forever in his heart, are Peter’s best memories by a million. So, when asked what advice he’d give to new dads, Peter kept it simple: “Rely on your instincts”.</p> <p>And with that, the legacy of love, devotion and the occasional heart-pounding driving lesson continues in the Overton family, one barbecue chicken at a time.</p> <p><em>Images: Instagram</em></p>

Family & Pets

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Financial hardship is the biggest driver of loneliness. Here’s why – and how to tackle it

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/michelle-h-lim-176472">Michelle H Lim</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a></em></p> <p>One in four Australians <a href="https://lonelinessawarenessweek.com.au/wp-content/uploads/2024/08/why-we-feel-lonely.pdf">report</a> feeling lonely, according to our new report released this week from our research collaboration.</p> <p>The data builds on a large <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">study we conducted last year</a> on social connection. Together, the data show that once someone <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">becomes lonely</a>, they’re likely to stay lonely.</p> <p>Feeling lonely can have a <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">negative impact on your health</a>. It increases the chance of having <a href="https://pubmed.ncbi.nlm.nih.gov/27124713/">social anxiety and depression</a>, and impacts the <a href="http://dx.doi.org/10.1037/0022-3514.85.1.105">health of your heart</a>, your <a href="http://pss.sagepub.com/content/13/4/384.full.pdf">sleep</a> and levels of <a href="https://pubmed.ncbi.nlm.nih.gov/15041083/">inflammation</a>. It also increases the likelihood of an <a href="https://www.ncbi.nlm.nih.gov/pubmed/?term=Loneliness+and+Social+Isolation+as+Risk+Factors+for+Mortality%3A+A+Meta-Analytic+Review">earlier death</a>. Staying lonely can accelerate these <a href="https://pubmed.ncbi.nlm.nih.gov/31237442/">negative impacts</a>.</p> <p>As more Australians grapple with a cost-of-living crisis, a key driver of loneliness is financial hardship.</p> <h2>Am I lonely?</h2> <p>Loneliness is a negative feeling that arises when your <a href="https://www.gilc.global/_files/ugd/410bdf_62e236db3a7146cd9f2654877a87dbc6.pdf">social needs are not met</a> by the relationships you hold. So you can feel alone, even if you’re surrounded by others, if you’re not getting the right kind of company and support.</p> <p>This might mean you feel, to a certain extent, that:</p> <ul> <li>you are not “in tune” with others</li> <li>your relationships are not meaningful</li> <li>you do not belong</li> <li>you do not have a group of friends</li> <li>no one understands you</li> <li>you do not have shared interests with others</li> <li>there is no one you can turn to.</li> </ul> <p>Not all of these may relate to you and you may experience these in varying degrees.</p> <h2>What drives loneliness?</h2> <p>We <a href="https://endingloneliness.com.au/wp-content/uploads/2023/10/ELT_LNA_Report_Digital.pdf">found</a> particular communities were more at risk of persistent loneliness:</p> <ul> <li>those aged 18 to 24</li> <li>people from culturally and linguistically diverse backgrounds</li> <li>people who were single or divorced</li> <li>those with a chronic disease</li> <li>those with mental ill health.</li> </ul> <p>But the largest effect we found, even after we accounted for all other possible contributing factors, is the impact of financial hardship.</p> <p>People who face financial hardship were almost seven times more likely to report persistent loneliness, and almost five times more likely to report persistent social isolation, compared with people who did not face financial hardship.</p> <p>This aligns with other studies that link economic hardships to <a href="https://pubmed.ncbi.nlm.nih.gov/33241698/">poor health</a>.</p> <p>In <a href="https://pubmed.ncbi.nlm.nih.gov/37761396/">children from low-income backgrounds</a>, for example, their family’s economic hardship is one of the main factors that negatively impacts their physical and psychological health.</p> <p>In a large <a href="https://www.sciencedirect.com/science/article/pii/S0277953622004282?via%3Dihub">study</a> using the UK Biobank, people who are from a lower economic background had a higher probability of reporting loneliness.</p> <p>In <a href="https://pubmed.ncbi.nlm.nih.gov/37528108/">Australia</a>, when compared with people on incomes more than A$150,000, those with incomes under $80,000 were 49% more likely to experience loneliness in one year and 66% more likely to report loneliness in at least two consecutive years.</p> <h2>Being poor affects how we interact with others</h2> <p>Factors such as income and your living environment are some of the <a href="https://www.who.int/health-topics/social-determinants-of-health#tab=tab_1">social determinants of health</a>, which influence our health outcomes.</p> <p>However, to date, little has been done to examine exactly how the lack of financial resources negatively affects the way we interact with others. There are two plausible scenarios.</p> <p>First, having financial pressures may change the way we feel and relate to others due to higher stress levels.</p> <p>Second, financial pressures may stop us from socialising because we have to take on more work to earn more money or we try to cut costs to save money. Socialising can be free in some circumstances, but most of the time, there is a cost to getting to places, or doing an activity together.</p> <h2>What can we do as a society?</h2> <p>The <a href="https://news.gallup.com/opinion/gallup/512618/almost-quarter-world-feels-lonely.aspx">high prevalence of loneliness across the world</a> – and the growing scientific evidence of the negative impact on our health, wellbeing and productivity, and subsequently the economy – can no longer be ignored.</p> <p>The World Health Organization is repositioning loneliness as a global public health priority and has established a <a href="https://www.who.int/groups/commission-on-social-connection">Commission on Social Connection</a>. This commission aims to set the global agenda for social connection, work with high-level commissioners to make the case for global action, scale up proven solutions and measure progress.</p> <p>We need to start by building a <a href="https://lonelinessawarenessweek.com.au/wp-content/uploads/2024/08/How-can-we-create-a-culture-of-connection.pdf">culture of connection</a> in Australia. This means changing the way we make decisions on how we relate to each other, promoting social connection within our schools, workplaces and communities. And to modify policies to allow us to start and maintain healthy social connections.</p> <p>Health and social policies to address loneliness and social isolation have to consider the impact of low incomes and increased financial pressures as barriers to building and maintaining meaningful social connection.</p> <p>Related to this is urban planning. People require safe and no- or low-cost spaces to interact in and to start and maintain relationships. This includes parks, libraries, public squares, community gardens and neighbourhood houses.</p> <p>Cuts to building or maintaining these spaces will stop people from interacting, gathering, or socialising within their community.</p> <p>Not addressing loneliness effectively or quickly will lead us to persistent loneliness and to potentially more distress.</p> <h2>How to connect if you’re financially pressured</h2> <p>Don’t feel alone in this experience. Let your family or friends know that you are financially pressured. Chances are, they are experiencing the same pressures because of the rise in the cost of living.</p> <p>Select no- or low-cost activities such as walking in the park with a friend, or connecting on the phone. Look for free events offered in your local area and city.</p> <p>Consider having meals at home as opposed to going out, or low-cost food options. Find some digital spaces which can allow you to interact with others in shared interest topics.</p> <p>If someone shares they are feeling lonely, asking “is there anything I can do to help?” facilitates the conversation and lets others know you are there without judgement.</p> <hr /> <p><em>If this article has raised issues for you, or if you’re concerned about someone you know, you can call Lifeline on 13 11 14.</em><!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/236135/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/michelle-h-lim-176472">Michelle H Lim</a>, Associate Professor of Psychology, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/financial-hardship-is-the-biggest-driver-of-loneliness-heres-why-and-how-to-tackle-it-236135">original article</a>.</em></p> </div>

Money & Banking

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Readers response: What is the best piece of advice you've passed down to your children?

<p>if there's one thing you can count on your parents or grandparents for, it's to hand down valuable advice that will work its way through generations. </p> <p>This advice could be simple everyday words of wisdom, or more life-altering affirmations. </p> <p>We asked our reader what is the best piece of advice they have passed down to their children and grandchildren, and the response was overwhelming. Here's what you said. </p> <p><span dir="auto"><strong>Margaret Barnes</strong> - Treat other people as you would like them to treat yourself.</span></p> <p><span dir="auto"><strong>Kate Stephens</strong> - Listen to your mother.</span></p> <p><span dir="auto"><strong>Keryn Bache</strong> - I recently advised my 22 year old granddaughter that if you have nothing nice to say, then say nothing at all. </span></p> <p><span dir="auto"><strong>Linda Kauffman</strong> - Be careful in relationships.</span></p> <p><span dir="auto"><strong>Janice Evans</strong> - Live within your means.</span></p> <p><span dir="auto"><strong>Norell Standley</strong> - Learn self defence to protect yourselves.</span></p> <p><span dir="auto"><strong>Les Thornborough</strong> - Look after your parents in their old age.</span></p> <p><span dir="auto"><strong>Linda Kauffman </strong>- Thinking before acting.</span></p> <p><span dir="auto"><strong>Liz N Jeff Busky</strong> - Don't try drugs, you may just like them.</span></p> <p><span dir="auto"><strong>Rick Dayes</strong> - Mind your own business.</span></p> <p><span dir="auto"><strong>Margie Buckingham</strong> - Live respectfully.</span></p> <p><span dir="auto"><strong>Marian Arakiel </strong>- Get a job, get up, dress up and show up.</span></p> <p><em><span dir="auto">Image credits: Shutterstock </span></em></p>

Family & Pets

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Woman seeks advice over family member’s list of “stupid” baby names

<p dir="ltr">A woman has asked for advice after seeing her cousin’s list of potential baby names, with many of them being classed as “just stupid”. </p> <p dir="ltr">The woman took to Reddit to explain how her cousin sent her baby name list to her family group chat, and no one has yet replied. </p> <p dir="ltr">"This was all sent in a family group chat and no-one has replied yet. I feel bad because at least she has put some thought into these names, especially compared to how most of us were named. On the other hand, well, you saw the names," the woman posted on Reddit. </p> <p dir="ltr">The names her cousin has shared and her logic behind them include: </p> <ol> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Urf (Earth..because no matter where the child lives in life, it will always be on Earth. Can't fault the logic on that one – Elon Musk might take umbrage though.)</p> </li> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Seaeoh (CEO. Apparently names dictate destiny and this name will cosmically transform the child into a successful business magnate.)</p> </li> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Stamp (She was in a long distance relationship with the father for a while and they used to send each other letters with...stamps. Sounds like what a caveman character in a film would be called.)</p> </li> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Biotic (Connected to antibiotic. This will protect the child from disease. Antibiotic would be and I quote, 'Ridiculous because it would sound like 'Aunty' which would cultivate bullying because she would sound old.')</p> </li> <li dir="ltr" aria-level="1"> <p dir="ltr" role="presentation">Ayeai (AI. In the future AI will take over and if it turns nasty it will go easy on her kid because they share a name.)</p> </li> </ol> <p dir="ltr">The woman explained that her cousin's logic for going with something very different for a name is "so many children nowadays have unique names that it will eventually become normal and people with 'standard' names will be the ones looking foolish." </p> <p dir="ltr">She also added that her cousin's husband isn't "brave enough" to say anything about the names and hopes she will lose interest. </p> <p dir="ltr">The people of Reddit had a lot to say about the choices, with one person commenting, “Those are all just terrible." </p> <p dir="ltr">"I say this in the kindest way possible. She is delusional and I dare say, stupid. That poor future child deserves better," wrote another user. </p> <p dir="ltr">Another suggested a normal name might actually be unique now and wrote, "Having a 'standard' name is what is unique now. How many kids are being named David and Lisa?" </p> <p dir="ltr"><em>Image credits: Shutterstock </em></p>

Family & Pets

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Been scammed? Here's how to financially recover

<p>Many people feel shame and embarrassment after realising they have been scammed. But you shouldn’t. You did nothing wrong; you are the victim of a crime. </p> <p>Not only are such feelings bad for your mental wellbeing, but they also often stop people reporting the scam or taking action to avoid further losses. </p> <p>Remember too that you’re not alone: victims reported more than 601,000 scams to the ACCC in 2023, together losing a staggering $2.74 billion. People of all ages, professions, and backgrounds have been affected. </p> <p>As hard as it may be, try to leave emotion aside and approach this like any other money matter – logically and methodically. Doing so will help you act faster and more decisively, which is crucial to your financial recovery. </p> <p>The following checklist will help you through this process:</p> <ul> <li><strong>Step 1 – Try to recoup your stolen money</strong></li> </ul> <p>Report the scam immediately. Contact your bank or card provider to stop the transaction being processed. Notify the company or marketplace where it occurred – they may have options to reverse the payment or for you to claim compensation for fraud. </p> <p>Also inform the ACCC’s Scamwatch and police if relevant, which may aid in tracking down the scammer and will help them alert the wider public on what to look out for. </p> <p>Unfortunately, the money is likely gone for good, but prompt action may just help you get some or all of it back. </p> <ul> <li><strong>Step 2 – Secure your accounts from further thefts</strong></li> </ul> <p>Once scammers have found a way to steal money, they often go back to try for more. Don’t let them! </p> <p>Freeze or cancel affected debit and credit cards, accounts etc. Change and strengthen all your passwords. Set up two-factor authentication if you haven’t already. Remove any suspicious applications on electronic devices. </p> <p>Double check the registrations of any business, adviser or tradesperson before engaging their services. Regularly check your superannuation, investments etc. to monitor for any inconsistencies.</p> <ul> <li><strong>Step 3 – Safeguard your cash flow</strong></li> </ul> <p>Don’t multiplying your losses by racking up new debts to cover the stolen money. That means limiting the use of credit cards, payday lenders and Buy Now, Pay Later schemes. Consider paying with cash instead to help you stick to a budget.</p> <p>If you have lost everything, register with Centrelink for income support. You may also be able to apply for hardship provisions with your bank, phone and energy providers and other essential services.</p> <ul> <li><strong>Step 4 – Get reputable advice</strong></li> </ul> <p>Legal advice may be able to get you out of bogus contracts, like loans or phone plans, and help you in the event your personal information has been stolen (which can be used in various ways to steal money). If you can’t afford a lawyer, there are free alternatives such as Legal Aid or Community Legal Centres. Specialist services such as the Women’s Legal Service may offer support where partner coercion or domestic abuse is involved.</p> <p>Accounting and financial advice may also help you navigate assistance options and longer term recovery efforts.</p> <ul> <li><strong>Step 5 – Rebuild your finances</strong></li> </ul> <p>Your ability to rebuild your finances after a scam will depend on a range of factors, including how much was lost plus your age and circumstances.</p> <p>You could seek to increase your earnings and/or cut your spending by tweaking your household budget, delaying retirement, or temporarily taking a second job to boost your income. </p> <p>Another option is to make your remaining finances work harder than before, such as adjusting your investment strategies (e.g. changing your risk weightings or selling assets) including within your superannuation or accessing equity in your home.</p> <p>If you’re a self-funded retiree, you may now qualify for a part or full pension if your scam losses push your total assets below the means test threshold.</p> <p>Ultimately, the most important things when dealing with the fallout from a scam is to look after yourself and protect what you have left.</p> <p>Scammers have already taken off with your dollars. Don’t let them steal your sense too!</p> <p><em><strong>Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a></strong></em></p> <p><em><strong>Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.</strong></em></p> <p><em>Image </em><em>credits: Shutterstock </em></p>

Money & Banking

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What are financial years – and why are they different from calendar years?

<div class="theconversation-article-body"> <p><em><a href="https://theconversation.com/profiles/michaela-rankin-1544784">Michaela Rankin</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a></em></p> <p>Yesterday was July 1, the first day of the new financial year in Australia.</p> <p>Also called fiscal years, financial years are often abbreviated in print. The one that’s just begun in Australia – July 1 2024 to June 30 2025 – will typically be denoted by FY24/25 or FY25.</p> <p>As the name suggests, financial years are used for financial reporting, tax and budgeting purposes. Whether you are preparing an individual tax return or financial statements for a business, it is important to understand the difference between financial and calendar years.</p> <p>Both have 365 days. But the calendar year, based on the <a href="https://www.timeanddate.com/calendar/gregorian-calendar.html">Gregorian calendar</a>, runs from New Years’ Day on January 1 through to December 31.</p> <p>Australian financial years on the other hand run from July 1 of one year to June 30 the next.</p> <p>But this July to June financial year <a href="https://web.archive.org/web/20200430054150/https:/www.cia.gov/library/publications/the-world-factbook/fields/228.html">does not apply</a> in all countries. Many align their financial year with the calendar year, but others have further variations still.</p> <p>So why are they different, and what does that mean for businesses operating across borders?</p> <h2>Different around the world</h2> <p>In contrast to our own, the United Kingdom’s financial year starts on April 6 each year and runs to April 5 the next.</p> <p>The English and Irish New Year traditionally fell on March 25, when taxes and other accounts were due. But in the 18th century, the British empire switched from the Roman Julian calendar to the Gregorian calendar, and had to <a href="https://www.bowesbrooks.co.uk/why-does-the-tax-year-start-on-6th-april/">adjust the start date</a> to avoid losing tax revenue.</p> <p>India’s fiscal year runs from April 1 until March 31, for a <a href="https://www.idfcfirstbank.com/finfirst-blogs/finance/reasons-why-the-financial-year-starts-from-april">number of reasons</a>. Historically a country that was heavily focused on agriculture, this timeframe aligned with the crop cycle and allowed the government to develop financial plans for the sector.</p> <p>The British empire also influenced the April reporting schedule in India, as prior to independence many financial policies were based on the British system.</p> <h2>Government budgets play a role</h2> <p>In the United States, fiscal years once ran from July 1 to June 30, like Australia’s do now. But in 1974 this was <a href="https://www.federaltimes.com/management/budget/2022/09/20/why-the-us-federal-fiscal-year-2023-starts-in-october/">changed</a> to instead span October 1 to September 30, giving Congress more time to agree on a budget each year.</p> <p>In the US, however, companies can also <a href="https://www.business.com/articles/how-to-decide-on-fiscal-year/">choose their own</a> fiscal years. Some choose a calendar year, but others elect dates that better align with their business cycle.</p> <p>Walmart’s, for example, ends on January 31 each year to reflect its typically strong financial performance over the holiday period at the end of the year.</p> <p>In Australia, the financial year matches government reporting cycles.</p> <p>Unlike the northern hemisphere, our parliamentarians typically take holidays over summer in December and January, which makes meeting over November and December to approve government budgets difficult.</p> <p>The federal budget is issued in May for the following financial year, giving parliament time to consider it before the new fiscal year begins.</p> <h2>Comparing (and taxing) performance</h2> <p>Regardless of the time period over which a financial year operates, its primary purpose is to provide a standardised time frame for financial reporting.</p> <p>Financial years allow income and expenses to be tracked and compared over the same timeframe each year. This allows investors to compare business performance across consistent periods. They are also used to determine the collection of personal income tax.</p> <p>Our government uses this information to calculate the amount of tax it will collect through the Australian Taxation Office each year.</p> <p>Businesses with operations spanning multiple countries may have to contend with fiscal years that do not align. Where this is the case, they may need to choose one financial year for the whole company, typically that used by the parent company.</p> <p>Keeping track of the financial year is helpful for individuals, in knowing when tax returns need to be prepared (and when to expect end-of-financial-year sales).</p> <p>It is also important for businesses to consider the financial year in making budgeting, business and tax planning decisions. <!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/233655/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/michaela-rankin-1544784"><em>Michaela Rankin</em></a><em>, Professor and Head, Department of Accounting, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-are-financial-years-and-why-are-they-different-from-calendar-years-233655">original article</a>.</em></p> </div>

Money & Banking

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Super funds are using ‘nudges’ to help you make financial decisions. How do they work?

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/fernanda-mata-1533222">Fernanda Mata</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>; <a href="https://theconversation.com/profiles/breanna-wright-267597">Breanna Wright</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>, and <a href="https://theconversation.com/profiles/liam-smith-5152">Liam Smith</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a></em></p> <p>Late last year the federal government announced <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/government-unveils-comprehensive-financial-advice">measures</a> to make it easier for Australians to access financial advice.</p> <p>As part of this, the government wants super funds to use “nudges” to get members to engage more with their retirement investments and superannuation, especially when they’re starting work and approaching retirement.</p> <p>While the legislation containing the changes is still in the consultation phase, super funds are <a href="https://www.afr.com/companies/financial-services/super-funds-spend-big-ahead-of-advice-reforms-20240418-p5fkx6">upskilling staff</a> and making other changes to improve customer service or risk a government crackdown.</p> <p>Telling funds to use <a href="https://www.behaviourworksaustralia.org/blog/nudging-what-is-it-and-how-can-we-use-it-forgood">nudge theory</a> to advise on super comes as more than five million Australians are heading towards retirement.</p> <h2>What is nudge theory?</h2> <p>Nudging is used to encourage people to pick the “better” option, without taking away their freedom to choose differently.</p> <p>For example, sending regular reminders to members about the benefits of voluntary contributions can get them to increase the amount they put in. This nudge makes it easier for them to contribute more – the better option – while still allowing them to choose not to.</p> <p>Assistant Treasurer Stephen Jones <a href="https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/government-unveils-comprehensive-financial-advice">explained</a> the government’s changes were needed because so-called “fin-fluencers” were providing unregulated financial advice on social media platforms to Australians unable to pay an adviser.</p> <h2>Helping people protect their interests</h2> <p>There are three ways, supported by research, nudges can help Australians engage with their super.</p> <p><strong>1. Future self visualisation</strong></p> <p>This involves getting young people to think about their <a href="https://www.halhershfield.com/considering-the-future-self">future selves</a> and visualise their life in retirement. This can help them to recognise the long-term benefits of getting actively involved with their super.</p> <p>Showing fund members how they might look when older by using an ageing filter software, for example, can make this visualisation more real for them and <a href="https://journals.sagepub.com/doi/full/10.1177/23794607231190607">enhance understanding of their future selves, leading to higher engagement</a>.</p> <p><strong>2. Simplification</strong></p> <p>We all know financial products and superannuation can be complicated. The information and choices presented can lead to <a href="https://thedecisionlab.com/biases/choice-overload-bias">decision paralysis</a>, causing people to delay or opt out of making a decision. By simplifying the process, funds can motivate people to get more engaged with their super.</p> <p>To get people to make voluntary contributions, for example, it might be more effective for funds to recommend <a href="https://siepr.stanford.edu/news/how-simple-nudge-can-motivate-workers-save-retirement">a specific percentage of their salary</a> rather than offering several options. Deciding whether to boost contributions by an extra 3%, 4% or 5% can be overwhelming, especially for people with poor <a href="https://theconversation.com/are-you-financially-literate-here-are-7-signs-youre-on-the-right-track-202331">financial literacy</a>.</p> <p><strong>3. Language and framing</strong></p> <p>The way options are framed and the language super funds use can significantly impact member engagement.</p> <p>Australians may be more likely to make higher voluntary contributions if they are asked how much they want <a href="https://www.bi.team/press-releases/the-small-nudges-that-could-make-young-people-142000-better-off-in-retirement/">to “invest” in their super </a> instead of how much they want to “contribute” or “add”.</p> <p>The word “invest” encourages people to think about future benefits, motivating them to make higher contributions.</p> <p>How options are labelled can also have an impact on <a href="https://www.bi.team/press-releases/the-small-nudges-that-could-make-young-people-142000-better-off-in-retirement/">member engagement</a> and decision making.</p> <p>For example, highlighting concrete benefits of different voluntary payments, such as “a 4% contribution keeps you above the poverty line”, and “a 10% contribution allows for a comfortable retirement according to Australian standards” can increase how much people are willing to contribute.</p> <h2>Ethical use of nudges</h2> <p>The <a href="https://www.superreview.com.au/news/superannuation/industry-body-backs-super-fund-nudges-though-parameters-need-be-set">Financial Services Council</a> backs the government on getting super funds to nudge members about contributions and investments but says there are limits.</p> <p>Parameters around nudging should be set […] to ensure that the language is appropriate and does not ultimately amount to defaulting.</p> <p>For example, letting a customer know that as they approach retirement, they need to make a decision about what retirement product they wish to utilise would be an acceptable nudge, while contacting a customer to let them know that they will be placed in a product when they retire, would not necessarily be acceptable.</p> <p>The council emphasises the importance of super funds recognising <a href="https://www.superreview.com.au/news/superannuation/industry-body-backs-super-fund-nudges-though-parameters-need-be-set">people’s autonomy</a> when delivering a “soft” or “hard” nudge.</p> <p>Soft nudges are gentle prompts and reminders designed to guide people to make good choices without pressuring them, such as sending an email reminder to review their investment options. Hard nudges are more direct in their guidance. These might include recommending specific investment options.</p> <p>Despite these differences, <a href="https://www.behaviourworksaustralia.org/blog/can-we-have-a-quiet-word-about-behavioural-science">ethical use of nudges</a> should encourage engagement while respecting people’s autonomy by making it easy for them to opt out.</p> <p>The use of nudges presents a valuable opportunity to increase superannuation fund members’ engagement.</p> <p>Whether through future self visualisation, simplification or language framing, ethical nudges can motivate members to take action, leading to greater confidence in navigating the retirement transition and achieving retirement goals.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/230404/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/fernanda-mata-1533222">Fernanda Mata</a>, Research Fellow, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>; <a href="https://theconversation.com/profiles/breanna-wright-267597">Breanna Wright</a>, Research fellow, BehaviourWorks Australia, Monash Sustainable Development Institute, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a>, and <a href="https://theconversation.com/profiles/liam-smith-5152">Liam Smith</a>, Director, BehaviourWorks, Monash Sustainable Development Institute, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/super-funds-are-using-nudges-to-help-you-make-financial-decisions-how-do-they-work-230404">original article</a>.</em></p> </div>

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Why you should never take nutrition advice from a centenarian

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/bradley-elliott-1014864">Bradley Elliott</a>, <a href="https://theconversation.com/institutions/university-of-westminster-916">University of Westminster</a></em></p> <p>It’s a cliche of reporting on people who reach 100 years of age, or even 110, to ask them some variation of the question: “What did you do to live this long?”</p> <p>Inevitably, some interesting and unexpected answer is highlighted. <a href="https://www.theguardian.com/society/2024/apr/05/briton-says-becoming-worlds-oldest-man-at-111-is-pure-luck">Fish and chips</a> every Friday. Drinking a glass of <a href="https://news.sky.com/story/worlds-oldest-man-juan-vicente-perez-dies-aged-114-13107627">strong liquor</a> every day. <a href="https://www.businessinsider.com/susannah-mushatt-jones-loves-bacon-2015-10">Bacon</a> for breakfast every morning. <a href="https://apnews.com/article/health-france-nursing-homes-795c8273f66b61669e93103cc9c25cd0">Wine and chocolate</a>.</p> <p>While a popular news story, this is a relatively meaningless question that doesn’t help us understand why certain people have lived so long. Let me try to explain why, via beautiful buildings, fighter pilots and statistics.</p> <p>In the second world war, Allied statisticians were applying their skills to minimising the number of bombers being shot down by enemy fire. By studying the damage patterns of bombers returning from action, maps could be drawn up of the most frequently damaged parts of aeroplanes so that expensive, heavy armour could be added to these areas.</p> <p>Simple enough, right? Then, along comes statistician Abraham Wald who argues for the exact <a href="https://www.jstor.org/stable/2287454?origin=crossref">opposite point</a>. The planes that they’re studying are all those that did return from combat with extensive damage, but what about those that didn’t return?</p> <p>Wald argues that armour should be added to those places that are undamaged on all the returning planes, as any plane hit in these undamaged areas was shot down, never making it back to be surveyed.</p> <h2>Survivorship bias</h2> <p>This phenomenon is known as survivorship bias, or the cognitive and statistical bias introduced by only counting those that are around to count but ignoring those that haven’t “survived”.</p> <p>You can take these examples to the absurd. Imagine a group of 100 people, all of whom have smoked their entire life. As a group, the smokers would die earlier of cancers, lung disease or heart disease, but one or two might defy the odds and live to 100 years of age. Now imagine the intrepid journalist interviewing the lucky soul on their 100th birthday with that classic question: “What do you attribute your successful ageing to?”</p> <p>“Smoking a pack a day,” says the newly minted centenarian.</p> <p>It seems obvious but survivorship bias is everywhere in society. We can all think of that one famous actor or entrepreneur who succeeded despite adversity, who worked hard, believed in themselves and one day made it. But we never read about or hear about the countless examples of people who tried, gave it their all and never quite made it.</p> <p>That’s not a good media story. But this creates a bias, we primarily hear the successes, never the failures. This bias applies to our perceptions of architecture (mostly great buildings from a given period “survive”), to finances (we often hear examples of people who have succeeded in risky investments, those who fail don’t sell books or self-help plans) and to career plans (“If you work hard, and drop out of college now, you can be a successful athlete like me,” say those who have succeeded).</p> <p>I work with a variety of older people and often include extreme outliers who have lived to extreme ages. We’re currently studying over 65-year-olds who have maintained unusually high levels of exercise into older age and have maintained excellent health.</p> <p>They’re phenomenal examples of older humans, many of them are faster, fitter and stronger than me by many of the measures we perform in the lab, despite being almost twice my age.</p> <p>While we know that their lifelong exercise is associated with their unusually good health into older age, we can’t directly say one causes the other yet. It could be that highly active people are protected against chronic diseases such as cancers, diabetes and heart disease. But it also could be that these people are still active into older age as they’ve not been afflicted by cancers, diabetes or heart disease earlier in their lives.</p> <p>Conversely, there could be some unknown third factor that we’ve not yet identified about these people that both keeps them healthy and separately keeps them exercising.</p> <p>For clarity, there are things that scientists like me will say in carefully caveated, scientific language that will probably help you to live longer. Being very physically active, not eating too much and not smoking are all on that list, along with generally having a positive outlook in life, and of course, picking the right parents and grandparents.</p> <p>Correlation does not equal causation. That point is hammered home relentlessly to students in science degrees. It’s how our brain works, we see a pattern between two variables, and assume they’re linked in some way. But often, like in survivorship bias, we’re not looking at all the data, and so finding patterns where there are none.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/229159/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/bradley-elliott-1014864">Bradley Elliott</a>, Senior Lecturer in Physiology, <a href="https://theconversation.com/institutions/university-of-westminster-916">University of Westminster</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-you-should-never-take-nutrition-advice-from-a-centenarian-229159">original article</a>.</em></p> </div>

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