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Karl fires up on Sussan Ley over “ruthlessly personal” purge

<p>A major reshuffle of the Coalition’s frontbench has erupted into political controversy, with Liberal leader Sussan Ley facing accusations of conducting a “ruthlessly personal” purge in her first major test since taking the reins from Peter Dutton.</p> <p>In a fiery interview on the <em>Today</em> Show, host Karl Stefanovic grilled Ms Ley over her decision to dump high-profile Senator Jane Hume – architect of the Coalition’s controversial work-from-home policy – and Victorian MP Sarah Henderson from the shadow cabinet.</p> <p>“I am not saying this is a bad thing, but you are ruthlessly personal,” Stefanovic said.</p> <p>“That’s not my view, Karl,” Ms Ley replied, defending the overhaul as part of building a “fantastic team” focused on challenging the Labor government. “Our job is to take the fight up to Labor to be the strongest possible Opposition on behalf of the Australian people.”</p> <p>When asked if she simply didn’t like Senator Hume, Ms Ley deflected: “Jane is a fantastic colleague and contributor and will remain in exactly the role she has as senator for Victoria.”</p> <p>The exclusion of Senator Hume, alongside the demotions of Senator Jacinta Nampijinpa Price and other senior women, has fuelled discontent within the party, especially amid concerns over gender representation. Ms Ley insisted that 40% of her shadow ministry are women when the outer ministry is included, but the shadow cabinet now includes just eight women out of 27 – fewer than under Peter Dutton.</p> <p>The removal of Senator Price from the shadow cabinet, now relegated to the defence industry portfolio in the outer ministry, has also raised eyebrows. Ms Ley said Price was “excited” about the new role and emphasised the Coalition’s focus on national security under Angus Taylor, who has moved from Treasury to Defence.</p> <p>Meanwhile, Senate leader Michaelia Cash has taken on the powerful foreign affairs portfolio, squaring off against Labor’s Senator Penny Wong. Ted O’Brien has replaced Taylor as Treasury spokesman, while Senator James Paterson has been elevated to the finance and government services portfolio.</p> <p>Leadership hopeful Andrew Hastie also earned a promotion, stepping into the home affairs role after requesting a shift from Defence.</p> <p>But the reshuffle has created clear winners and losers, with former Nationals leaders Barnaby Joyce and Michael McCormack both axed from the front bench. Mr McCormack hinted at ongoing tensions in the Nationals over their separation from the Liberals, telling <em>Sky News</em> he had more to say on key issues like net zero.</p> <p>Asked if his demotion was due to past criticisms of party leadership, McCormack replied, “You would have to ask David Littleproud.”</p> <p>That leadership is now under fresh scrutiny. Nationals MP Colin Boyce has accused Mr Littleproud of misleading the party room over negotiations with Ms Ley, saying, “How can you support a bloke that misleads the partyroom? I’m calling him out.”</p> <p>Senator Matt Canavan, who recently challenged Mr Littleproud for leadership, also weighed in, warning the Liberals to stay out of National Party business.</p> <p>Back in Liberal ranks, Senator Hume’s dumping remains one of the most contentious decisions. While Ley allies insist there’s no bad blood, others suggest a falling out between the two women and suspicions over Hume’s factional allegiances played a role.</p> <p>“She’s just collateral damage,” one Liberal MP said, hinting that internal tensions and past disagreements – including Hume’s controversial remarks during the last election – contributed to her downfall.</p> <p>The reshuffle, intended to position the Coalition as a stronger force heading into the next election cycle, has instead exposed deep rifts within both the Liberal and National parties. Whether this bold shake-up will unify the Opposition or deepen divisions remains to be seen.</p> <p><em>Images: Today show</em> </p>

TV

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Man charged with murder over house fire that killed 80-year-old

<p>A 50-year-old man has been arrested and charged with murder following a deadly house fire that claimed the life of an 80-year-old man in Sydney’s inner west.</p> <p>Emergency services were called to the scene of the ferocious blaze on Irrara Street in Croydon at around 4am on Wednesday. The fire was so intense that it caused the roof of the single-storey brick home to collapse, forcing firefighters to retreat as they battled the flames.</p> <p>The body of Ted Grantham, 80, was found inside the property. He has been remembered by loved ones as a gentle and devoted family man who dedicated his life to music and service in the church, where he played the organ.</p> <p>Following the fire, a major police operation was launched to locate a man who also lived at the residence and was related to the victim. He was tracked down overnight in Woy Woy, on the NSW Central Coast, and was found to be carrying a concealed machete at the time of his arrest.</p> <p>The man has since been charged with murder.</p> <p>“This has been an intensive few hours to locate a man we believe can assist with our inquiries into what we allege is a suspicious fire,” said Superintendent Christine McDonald. “It really is tragic.”</p> <p>An elderly woman, believed to have left the home about three hours before the fire began, is also assisting police with their investigation. Authorities have confirmed that the victim, the arrested man, and the elderly woman are all related.</p> <p>Six fire trucks and nearly two dozen firefighters responded to the emergency, gaining entry through the back of the property due to the “intense” flames engulfing the front of the house. Video footage taken after the blaze shows the roof collapsed and extensive fire damage throughout the home.</p> <p>Superintendent McDonald said police are in contact with devastated family members. Investigations into the circumstances surrounding the fire continue.</p> <p><em>Images: Facebook</em></p>

Legal

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Mother charged with murder after deadly house fire kills three children

<p>A 36-year-old Queensland mother has been charged with multiple counts of murder after a devastating house fire in Toowoomba claimed the lives of three of her children, in what police believe was a deliberately lit blaze.</p> <p>The fatal fire broke out just after midnight last Wednesday at the family's home in Harristown, engulfing the property before emergency services could bring it under control. When fire crews arrived, the house was already consumed by flames.</p> <p>Tragically, a young boy was found dead near the front door of the home. His two sisters, also young children, were rescued from the fire in critical condition and rushed to Queensland Children’s Hospital. Despite efforts to save them, both girls later died after being taken off life support.</p> <p>Queensland Police allege the children’s mother intentionally started the fire. In a statement on Tuesday, police confirmed she has been charged with three counts of murder (domestic violence offence), three counts of attempted murder (domestic violence offence), and one count of arson.</p> <p>Two other children survived the blaze, as did the woman’s 34-year-old partner. Investigators have ruled out the involvement of any other suspects, though police say the investigation remains ongoing.</p> <p>“This is an incredibly tragic incident that has deeply affected the community,” a police spokesperson said. “Our thoughts are with the surviving family members and all those impacted by this devastating loss.”</p> <p>The woman is expected to appear in court as the legal process continues.</p> <p><em>Images: 7 News / Facebook</em></p>

Legal

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Aussie TV star wins $9.2m on game show – the largest in history

<p>In an electrifying moment that will surely go down in television history, Australian reality TV star David Genat has claimed a jaw-dropping AUD$9.2 million prize on US television, securing the largest single cash payout ever seen on American TV.</p> <p>The 44-year-old, widely recognised by Aussie audiences from <em>Survivor Australia</em>, <em>Celebrity Apprentice</em>, <em>Rush</em> and <em>Getaway</em>, delivered a masterclass in risk-taking and intuition in NBC’s <em>Deal or No Deal Island</em>.</p> <p>Genat, dubbed the “Survivor golden god” after his 2020 <em>Survivor Australia: All Stars</em> victory, knew he had the upper hand early in the final showdown. But the real twist came when the show’s notorious banker was revealed as none other than Chrissy Teigen.</p> <p>Faced with 26 cases – one containing the life-changing sum of AUD$12.2 million – Genat navigated a nail-biting elimination round, fuelled by his father’s memory and a razor-sharp strategy. Rejecting a staggering seven offers, including multiple million-dollar deals, he played with nerves of steel until just two cases remained.</p> <p>Then came the final offer: a mind-blowing $US5.8 million ($AUD9.2 million). With tension at an all-time high, Genat made the call – he took the deal.</p> <p>It was a decision that paid off in monumental fashion. When his chosen case was opened, it contained just $75. Had he gambled one step further, he would have walked away with next to nothing. Instead, he etched his name into television history with the record-breaking win.</p> <p>“It was surreal,” Genat later shared with <em>USA Today</em>. <span style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;">“The offer came in at US$5.8 million and I started thinking about it, and that is just so much money. I was having a spiritual experience, man. I just knew where that money was. I knew which cases to open. I was looking for signs from my father, who passed away a couple of years ago. I felt his presence there, and he was just guiding me on what cases to open.”</span></p> <p>That deep connection gave him the clarity to seize the moment and walk away with a life-altering fortune. “My frequency is on another level,” he added. “I fully feel like I’m floating.”</p> <p><span style="font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen, Ubuntu, Cantarell, 'Open Sans', 'Helvetica Neue', sans-serif;">With his newfound millions, Genat already has a few indulgences in mind, including a new motorcycle, a luxury watch and some sleek new cars for his four kids.</span></p> <p>But the adventure might not stop here. Rumours are swirling that Genat could be gearing up for another reality TV showdown on the upcoming <em>Survivor: Australia vs. the World</em>, set to air later this year.</p> <p><em>Images: Instagram</em></p>

Money & Banking

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“They are treating us like chumps": Karl fires up over supermarket practices

<p>In a heated interview on the <em>Today </em>show, Karl Stefanovic confronted Treasurer Jim Chalmers over the conduct of major supermarket chains, accusing them of treating Australian consumers like "chumps". The exchange followed the release of the Australian Competition and Consumer Commission’s (ACCC) final report into supermarket practices, highlighting concerns over price-gouging, misleading discounts and "shrinkflation".</p> <p>The ACCC’s inquiry found that the dominance of Woolworths, which controls 38% of the national grocery market, and Coles, which holds 29%, has resulted in an “oligopolistic” effect. Despite this, the regulator refrained from endorsing Opposition Leader Peter Dutton’s call for greater powers to dismantle the supermarket giants, cautioning that there was no “silver bullet” solution.</p> <p>Treasurer Chalmers acknowledged the ongoing cost-of-living pressures, saying that “Australians are still feeling that pressure at the checkout. And that’s why we’re cracking down on the supermarkets.” He added that the government was working to foster greater competition in the industry to prevent further consumer exploitation.</p> <p>However, Stefanovic challenged Chalmers, arguing that no significant changes had been made to curb supermarket dominance. “They are treating us like chumps and they continue to,” he said. “And I’ve not seen anything that’s going to stop them from doing that.”</p> <p>Chalmers then defended the government’s economic policies, citing key improvements including declining inflation, rising real wages and economic growth. “We know that people are still under pressure,” he admitted but insisted that progress was being made.</p> <p>In response to the ACCC report, Coles issued a statement claiming the company also faces financial pressures, including rising rents and electricity costs. “We do not control these inflationary costs in the economy – but they contribute to higher grocery prices for Australian households,” the statement read.</p> <p>Coles also defended its pricing strategy, stating that grocery inflation (excluding tobacco) remained at just 1% for the first half of the financial year. The company assured that it is reviewing the ACCC’s recommendations and has already implemented changes to improve pricing transparency and customer communication.</p> <p><em>Images: The Today show</em></p>

Money & Banking

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New details emerge after Gold Coast Hilton Hotel catches fire

<p>New details have emerged after a massive fire erupted at the Hilton Surfers Paradise Hotel on the Gold Coast overnight, prompting the evacuation of hundreds of guests and staff.</p> <p>The blaze originated on the roof of the hotel's western tower at around 2am, with debris falling onto the second-floor restaurant area, notably affecting establishments like Steampunk Surfers Paradise. </p> <p>Emergency services responded promptly, with multiple fire crews arriving to combat the flames. The Queensland Fire Department reported that the fire on the pool deck was extinguished by around 2:20am, and the roof fire was under control by 2:40am. Guests were then permitted to return to their rooms at around 3am. </p> <p>Surfers Paradise resident Joevy Lyn captured dramatic footage of debris tumbling 120m from the roof to the streets below.  Legendary Australian jockey Shane Dye, who was staying on the 34th floor of a neighbouring tower, witnessed the fire firsthand and told the Courier Mail: "Everything was on fire and in flames, I couldn't believe it. It was right outside my window." Dye evacuated his building amid initial confusion, saying that hotel staff were initially unaware of the severity of the situation. </p> <p>Another guest, Leah Nicholson, who was staying at the Hilton with her wife and three-year-old daughter, reported not hearing any alarms but, upon contacting the front desk, was told of the fire. The family then descended 14 flights of stairs to evacuate, only hearing evacuation alarms upon reaching the ground level. </p> <p>Queensland police assisted in the evacuation, and while the cause of the fire remains under investigation, a woman staying at an apartment across the road reportedly said she believed the Hilton sign had exploded.</p> <p>“The H on top of the Hilton building just started to catch on fire and then it all started to explode,” the woman told 7NEWS. “Parts of it started to fall which caught … other parts of the building on fire. It was quite intense.”</p> <p><em>Images: 7NEWS</em></p>

Travel Trouble

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Steve Smith's huge retirement news

<p>Australian veteran cricketer Steve Smith has announced his retirement from One Day International cricket. </p> <p>The 35-year-old, who stepped in to fill Pat Cummins’ captaincy role during the ICC Champions Trophy tournament, has played his 170th and last match in the ODI format, losing to India by four wickets. </p> <p>After the epic showdown, Smith fronted the media to make the bombshell announcement that his time in the green and gold 50-over uniform had come to an end, effective immediately.</p> <p>He said, “Now is a great opportunity for people to start preparing for the 2027 World Cup so it feels like the right time to make way.”</p> <p>A two-time Australian ODI player of the year and a member of the ICC’s ODI Team of the Year in 2015, Smith plans to continue playing Test matches for some time yet.</p> <p>“Test cricket remains a priority and I am really looking forward to the World Test Championship Final, the West Indies in the winter and then England at home,” he added. </p> <p>“I feel I still have a lot to contribute on that stage.”</p> <p>Cricket Australia chief executive Todd Greenberg led the tributes to Smith, stating: “Congratulations to Steve on an amazing One-Day International career during which he has made a vast contribution to Australia’s performances in the 50-over format."</p> <p>“Right up until his final ODI innings Steve exhibited an incredible ability to accumulate runs in all conditions and his astute leadership has been crucial in the team’s ongoing success including the 2015 and 2023 ICC World Cup victories."</p> <p>“We’re fortunate Steve still has much to offer in the Test and T20 arenas and I look forward to witnessing the next stage of one of cricket’s great careers.”</p> <p><em>Image credits: RAHAT DAR/EPA-EFE/Shutterstock Editorial </em></p>

Retirement Life

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"It's time": ABC legend announces retirement

<p>ABC’s chief election analyst Antony Green has announced his plans to step down from the public broadcaster after 30 years in his distinguished role. </p> <p>Green announced that he would be retiring after the next federal election, which is rumoured to take place between March and May 2025. </p> <p>“By the time of the next election, I’ll be 68 and I know I’m not as sharp and quick as I was five years ago,” Green said, according to the <em>ABC</em>.</p> <p>“It gets harder and harder. It’s like a footballer, sometimes they play on a season too long, and I’m making sure I don’t do that.”</p> <p>Green, who has covered more than 90 Australian elections, said it was “time to retire” but he would “stay on” for a couple years “handing over work and doing other things”.</p> <p>“Essentially I’m deciding to retire and work less,” Green said.</p> <p>“I got this job as an election worker 36 years ago and I decided I enjoyed doing it – I’ve done a lot of development since. It’s been a long, fun journey.”</p> <p>Green’s final on-air appearances will be the West Australian state election on March 8th and the federal election, which is yet to be announced.</p> <p>Casey Briggs will step in  as ABC’s chief election and data analyst after Green's departure, as she announced he would be missed. </p> <p>“For more than three decades Antony Green has set the bar for election analysis. He is sharp, fast and, even under the immense pressure of the night, manages to keep his sense of humour,” Briggs said.</p> <p>“For me, it has been such a privilege to have had a front-row seat to watch and learn from the master at work."</p> <p>“We will all miss him from our screens, but I’m thankful that at least we get a couple more chances to celebrate his monumental contribution to Australia and its democracy.”</p> <p>ABC journalist Annabel Crabb said covering four federal elections with him had been “one of the great pleasures of (her) professional life”.</p> <p>“What a gift it is to our democracy and to our national broadcaster that in 1989 this wee maths nerd saw the ad in the paper for a research position at the ABC and the late Ian Carroll recognised in him the sprouts of the Tree Of Wisdom he’d become!” Crabb wrote in a social media post.</p> <p>“A legendary figure. A migrant success story. A generous colleague.”</p> <p><em>Image credits: ABC</em></p>

Retirement Life

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Being carers costs women more than $500,000 over a lifetime, leaving them with less in retirement than men

<div class="theconversation-article-body"> <p><em><a href="https://theconversation.com/profiles/myra-hamilton-8638">Myra Hamilton</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841"><em>University of Sydney</em></a></em></p> <p>By the time they retire, women typically have about <a href="https://link.springer.com/book/10.1007/978-981-97-5461-8">one third</a> less superannuation than men.</p> <p>This can amount to more than <a href="https://www.carersaustralia.com.au/wp-content/uploads/2024/03/Final-Economic-impact-income-and-retirement-Evaluate-Report-March-2022_2024EDIT.pdf">$500,000</a> when wages and super are combined over their lifetime.</p> <p>The gendered super gap has narrowed over the last few decades, as women have joined the workforce <a href="https://www.abs.gov.au/articles/changing-female-employment-over-time#:%7E:text=Women's%20participation%20in%20paid%20work,women%20are%20also%20working%20longer.">in increasing numbers</a> and the superannuation system has matured.</p> <p>But progress is too slow. If we keep tracking as we are, we can’t expect parity until <a href="https://www.womeninsuper.com.au/application/files/3816/8782/3898/7._Not_up_for_discussion.pdf">2070</a>. So why is the gap so persistent?</p> <h2>Making super compulsory</h2> <p>For most of the 20th century, Australia’s retirement incomes system produced more equal outcomes because the age pension is not linked to a person’s lifetime earnings.</p> <p>But the introduction of <a href="https://www.australianretirementtrust.com.au/learn/education-hub/superannuation-history-australia">compulsory super</a> in 1992 linked lifetime earnings and retirement income.</p> <p>The gender super gap arises because women and men have different patterns of paid work and earning over their lifetimes. Women have <a href="https://www.wgea.gov.au/the-gender-pay-gap#:%7E:text=conscious%20and%20unconscious%20discrimination%20and,responsibilities%2C%20especially%20in%20senior%20roles">14% lower</a> average weekly earnings than men. This is due to <a href="https://www.wgea.gov.au/the-gender-pay-gap#:%7E:text=conscious%20and%20unconscious%20discrimination%20and,responsibilities%2C%20especially%20in%20senior%20roles">three factors</a>:</p> <ul> <li> <p>women are much more likely to have unpaid care responsibilities. As a result, they take career breaks, work fewer hours, or work in jobs incommensurate with their skills</p> </li> <li> <p>discrimination, bias and lack of workplace flexibility mean better pay and career outcomes for men and fewer opportunities for people to combine work and career with care responsibilities</p> </li> <li> <p>occupational segregation means women are concentrated in female-dominated industries, which tend to attract lower wages than male-dominated ones.</p> </li> </ul> <p>Over a lifetime, these factors limit women’s capacity to earn and to accumulate super.</p> <p>On average, a woman in full-time permanent employment accumulates <a href="https://www.wgea.gov.au/sites/default/files/documents/Women%27s%20economic%20security%20in%20retirement.pdf">17.7% less</a> superannuation per year than a man in an equivalent role. That amounts to A$1,540 less per year. This annual shortfall compounds over time resulting in a wide gender super gap by the time women retire.</p> <h2>How does this work in practice?</h2> <p>The interruptions to work caused by providing unpaid care reduces people’s opportunities for accumulating superannuation. For example, having a child leads to substantial reductions in mothers’ workforce participation and earnings. Women’s earnings <a href="https://treasury.gov.au/sites/default/files/2023-03/p2023-372004.pdf">fall</a> by an average of 55% in the first five years after entry into parenthood.</p> <p>In contrast, research suggests men’s earnings are <a href="https://treasury.gov.au/sites/default/files/2023-03/p2023-372004.pdf">unchanged</a>, or even <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5340267/#:%7E:text=Over%20time%2C%20unmarried%20but%20coresident,support%20for%20egalitarian%20gender%20roles.">increase</a>, after they become parents. So parenthood has a much greater impact on a mothers’ super than a fathers’. One <a href="https://melbourneinstitute.unimelb.edu.au/assets/documents/hilda-bibliography/hilda-conference-papers/2007/Parr,-Nicholas_final-paper.pdf">estimate</a> suggests having a child reduces a woman’s superannuation balance at age 60 by about $50,000 and a man’s by $5,000.</p> <p>It’s not just parenthood. <a href="https://www.aihw.gov.au/reports/australias-welfare/informal-carers">One in 10</a> Australians provide care for an ageing relative or person with a disability or chronic illness. Women do most of this unpaid care. Unpaid carers <a href="https://bristoluniversitypressdigital.com/view/journals/ijcc/6/3/article-p318.xml">often</a> reduce their working hours, withdraw from work, or put their careers on hold. Among primary carers <a href="https://www.wgea.gov.au/gender-equality-and-caring#:%7E:text=Primary%20carers%20are%20carers%20who,carers">only 58%</a> are in paid work.</p> <p>According to a <a href="https://www.carersaustralia.com.au/wp-content/uploads/2024/03/Final-Economic-impact-income-and-retirement-Evaluate-Report-March-2022_2024EDIT.pdf">recent study</a>, on average, by age 67, primary carers have lost $392,500 in lifetime earnings and $175,000 in super.</p> <p>Some older workers, especially women, also care for their grandchildren. More than a <a href="https://aifs.gov.au/sites/default/files/2022-07/Grandparents%20and%20child%20care%20in%20Australia_0.pdf">quarter</a> of grandparents of a child aged 13 or under provide care for the child in a typical week, usually while the parents work.</p> <p>In a <a href="https://nationalseniors.com.au/uploads/09151356PAC_GrandparentsChildcareLabourForceParticipation_Report_FINAL_Web_0.pdf">recent</a> study, 70% of grandparents, mostly grandmothers, providing regular childcare reported they adjusted their work to accommodate it. One in three reported it had negative impacts on their financial security as they aged.</p> <p>These factors compound over a lifetime. Many Australians provide care for multiple family members simultaneously, or at different times throughout their lives.</p> <p>Women in employment are more likely to be in lower paid positions, and lower paid industries and occupations. Employees in feminised industries such as community services (including paid care workers) and retail have among the <a href="https://www.superannuation.asn.au/wp-content/uploads/2024/01/2311_An_update_on_superannuation_account_balances_Paper_V2.pdf">lowest</a> median super balances, less than half of those of managers and professionals.</p> <h2>What is the solution?</h2> <p>The gender super gap reflects deep inequalities in the distribution of work, incomes and care responsibilities between women and men across their lives. How do we fix it?</p> <p>Policy and public debate has focused on boosting women’s workforce participation. More women in work, means higher incomes and more saving, reducing the gender super gap, right?</p> <p>Yes, up to a point and rates of <a href="https://www.abs.gov.au/articles/changing-female-employment-over-time">women’s workforce participation</a> are increasing.</p> <p>But we also know in Australia, we have a <a href="https://nationalseniors.com.au/uploads/09151356PAC_GrandparentsChildcareLabourForceParticipation_Report_FINAL_Web_0.pdf">preference</a> for some family care of young children, and for care of adults with disability and older people in the <a href="https://www.aihw.gov.au/reports/australias-welfare/australias-welfare-2017-in-brief/contents/ageing-aged-care">community</a>. This means many parents and carers will continue to have at least some interruptions to paid work, reducing their super contributions.</p> <p>We also know when women are encouraged to enter paid work, care responsibilities are often “redistributed” to other women. When mothers enter or re-enter paid work it’s often <a href="https://theconversation.com/caught-in-an-intergenerational-squeeze-grandparents-juggle-work-and-childcare-47939">grandmothers</a> who step in, frequently reducing their incomes and super. For care of ageing <a href="https://www.cambridge.org/core/journals/ageing-and-society/article/abs/an-integrative-analysis-of-sibling-influences-on-adult-childrens-caregiving-for-parents/038C6F299E62380F9C954A9A586A28CD">parents</a> it is often non-working female siblings that step in.</p> <p>As the savings potential of one group of women increases, the savings potential of another decreases.</p> <p>Where care can’t be redistributed to other women within the family, it is redistributed to paid early childhood education and care, disability support, and aged care services. All of these services are dominated by women. As a highly feminised industry, the caring roles are <a href="https://www.abc.net.au/news/2024-08-14/why-are-nurses-and-childcare-workers-so-poorly-paid/104218868">poorly remunerated</a>, so those doing the care, while paid, are themselves limited to save enough super.</p> <p>Boosting women’s workforce participation is an important step. But another is to pay super contributions to parents during the time they are off work providing childcare, as <a href="https://ministers.pmc.gov.au/gallagher/2024/super-boost-new-parents#:%7E:text=It%20means%20that%20eligible%20parents,to%20their%20nominated%20superannuation%20fund.">recently</a> agreed by the federal government.</p> <p>But we need an <a href="https://www.unsw.edu.au/newsroom/news/2015/04/carers-deserve-more-credit-in-the-retirement-incomes-debate">equivalent</a> for other kinds of unpaid carers.</p> <p>Even so, as long as care continues to circulate between different groups of women – older women, low paid women – and as long as care isn’t valued for the large social and economic contribution it makes, the gender super gap will persist.</p> <p>To close the persistent gender gap, we need to go further, encouraging greater men’s involvement in care, and providing better recognition and remuneration of unpaid and paid care.</p> <hr /> <p><em>This article is part of The Conversation’s retirement series, in which experts examine issues including how much money we need to retire, retiring with debt, the psychological impact of retiring and the benefits of getting financial advice. Read the rest of the series <a href="https://theconversation.com/au/topics/retirement-series-2024-168372">here</a>.</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/240323/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/myra-hamilton-8638"><em>Myra Hamilton</em></a><em>, Associate Professor, gender, ageing and care, <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/being-carers-costs-women-more-than-500-000-over-a-lifetime-leaving-them-with-less-in-retirement-than-men-240323">original article</a>.</em></p> </div>

Money & Banking

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"It makes my blood boil": Today reporter fires up over athletes' pay

<p>Sports reporter and <em>Today</em> presenter Roz Kelly has fired up over a list revealing the highest paid athletes in 2024 for one major reason. </p> <p><a href="https://www.sportico.com/feature/highest-paid-athletes-in-the-world-1234765608/" target="_blank" rel="noopener">Sportico</a> revealed the list on Friday, which features one concerning theme that caught Kelly's attention: not a single female athlete features in the top 100 list.</p> <p>The salary figures for each athlete combine their reported annual salary as well as endorsement deals that are often worth millions. </p> <p>The lucrative list is topped by football icon Cristiano Ronaldo, who reportedly pocketed $411 million in 2024.</p> <p>"It makes my blood boil, it makes me so, so angry," Kelly said. "It's just proof of the gender pay gap in sport."</p> <p>"Some of these women are some of the most marketable in the world right now, they are on billboards everywhere."</p> <p>"I know like tennis players and surfers, they have equal prize money. There's still a long way to go in cricket, and soccer... I'm on a rant now."</p> <p>"When it comes to endorsement deals they are severely underpaid compared to their male counterparts."</p> <p>Five of the top 10 paid athletes in 2024 were football players, while basketball, golf, and American football also feature heavily in the top 20.</p> <p>Ben Simmons is the lone Aussie athlete in the top 100 after he earned $65m last year, coming in at 85th on the list.</p> <p><em>Image credits: Today / Shutterstock </em></p> <p style="box-sizing: border-box; margin: 24px 0px 0px; padding: 0px; border: 0px; font-stretch: inherit; font-size: 18px; line-height: 1.333; font-family: 'Proxima Nova', 'Helvetica Neue', 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; vertical-align: baseline; caret-color: #333333; color: #333333; letter-spacing: 0.25px;"> </p>

Money & Banking

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Should you use your retirement savings to pay off debt? Three things to keep in mind

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> and <a href="https://theconversation.com/profiles/jasmine-kinsman-1438670">Jasmine Kinsman</a>, <a href="https://theconversation.com/institutions/nelson-mandela-university-1946">Nelson Mandela University</a></em></p> <p>A host of countries have taken steps to reform the terms under which people can access their retirement benefits. South Africa is the most recent. In 2024 it <a href="https://theconversation.com/south-africa-has-changed-its-retirement-rules-to-help-boost-country-savings-how-it-will-work-233287">introduced changes</a> that allow access to some retirement savings while ensuring that most of the money is still preserved for later.</p> <p>Other countries that have changed the rules to allow members to dip into their savings before retirement include Australia, Chile, India and Portugal. Changes were introduced to ease the financial strain caused by COVID-19 pandemic lockdowns. People across the world are grappling with debt and the cost of living.</p> <p><a href="https://www.treasury.gov.za/comm_media/press/2024/2024%20Two-pot%20System%20Updated%20%20FAQ%20August%202024.pdf">Policymakers</a> have considered this an avenue that offers financially distressed fund members the flexibility to access their retirement funds while still supporting long-term retirement savings. Retirement funds are also often the only sizeable savings that fund members have.</p> <p>A recent report by South Africa’s <a href="https://www.discovery.co.za/portal/business/top-reasons-for-two-pot-withdrawal-requests">Discovery Corporate and Employee Benefits</a>, which represents 3,000 employers that provide pension and provident funds for just over one million employees, found that people aged between 35 and 45 made the most claims to access the savings component of their retirement.</p> <p>When asked what they used the funds for, 24% of members said their withdrawals were for financing home or car expenses. Another 21% of members were using their funds to pay off short-term debt. The majority of members who withdrew their retirement savings were low-income earners (earning up to R125,000 or US$7,000 a year). On the other hand, withdrawals were lowest among high-income earners (earning more than R1 million or US$56,000 a year).</p> <p>This data provides evidence that most low- to middle-income South African consumers are grappling with the trade-off between preserving their capital for retirement and meeting their monthly financial obligations.</p> <p>Given that everyone’s financial situation, goals and needs are different, it’s always best to speak to a financial advisor to assess whether using your retirement savings to pay off debt will be a sound move. But, as academics who have focused on financial planning, we offer three pointers to consider:</p> <ul> <li> <p>understand what you owe, to whom, and what it’s costing you</p> </li> <li> <p>plan beyond paying off debt</p> </li> <li> <p>weigh the pros and cons carefully.</p> </li> </ul> <h2>Know which debt to settle first</h2> <p>Debt with a high interest rate often takes longer to repay, because at the start of the loan repayment period, most of the repayments are going towards interest payments – not reducing the capital amount. If you use your retirement proceeds towards this, it could shorten the period that it would take to settle the loan and reduce the interest repayments, which are compounded according to the outstanding loan balance.</p> <p>Short-term loans, such as those with a repayment term of up to 18 months, tend to have higher interest rates. Unsecured debt, which is debt that is not tied to an asset, also attracts high interest rates because they have little to no collateral requirements. Collateral provides the lender with a guarantee of compensation in the event of default. When there is no collateral, the cost of debt becomes more expensive. Using your retirement proceeds towards settling these short-term loans can free up cash that can be used towards settling other debt and will improve your credit score.</p> <h2>Understanding borrowing behaviour</h2> <p>Using your retirement savings to settle debt should be a priority if you have a plan in place to ensure that your overall financial position will improve. Once the debt is cleared, consider how you can use your free cash in your favour. This could mean boosting your savings or acquiring assets and investments.</p> <p>But if retirement savings are being used to pay off debt while you accumulate more debt, this indicates on ongoing cycle of debt. For example, paying off the minimum amount due on a loan but also consuming the balance that becomes available on the same loan is a sign of poor borrowing behaviour. A more extreme example is taking on more debt to service existing debt.</p> <p>Without a change in borrowing behaviour, using your retirement savings to pay off debt will leave you worse off. You will have missed out on the opportunity to grow your retirement savings and you will have got into more debt.</p> <h2>Debt repayments vs retirement returns</h2> <p>When considering withdrawing from your retirement savings to pay down debt, it’s also important remember this will be at the expense of building your retirement nest egg. For instance, if a 35-year-old were to draw down R30,000 from their retirement fund, that same amount could have grown their retirement capital by over R200,000 by the time they reached 55 years old (assuming an investment return of 10%).</p> <p>Withdrawing your retirement savings on a frequent basis could also mean you may need to work longer and past your intended retirement age to compensate for the withdrawals. Or you may need to find ways to supplement your retirement savings through other investments, or consider reducing your standard of living at retirement.</p> <h2>Is this a sound move?</h2> <p>Remember, withdrawal from retirement savings is subject to tax.</p> <p>While retirement may seem far off when there are more pressing financial needs, using your savings to pay down debt has its advantages and drawbacks. Since withdrawals are being used to pay for expenses and service debt, it’s also important to reflect on borrowing behaviours that may need to be corrected. Otherwise, using retirement savings could become a financial crutch that could make your retirement income less secure.</p> <p>Settling debt using your retirement savings should be done after careful consideration and planning. If in doubt, speak to a financial advisor.<!-- 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/244837/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/bomikazi-zeka-680577"><em>Bomikazi Zeka</em></a><em>, Associate Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> and <a href="https://theconversation.com/profiles/jasmine-kinsman-1438670">Jasmine Kinsman</a>, Senior Lecturer in Financial Planning and Certified Financial Planner, <a href="https://theconversation.com/institutions/nelson-mandela-university-1946">Nelson Mandela 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/should-you-use-your-retirement-savings-to-pay-off-debt-three-things-to-keep-in-mind-244837">original article</a>.</em></p> </div>

Money & Banking

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Eagles star announces retirement after shock health diagnosis

<p>Steuart Smith, the lead guitarist of iconic rock band <em>The Eagles</em> has announced his retirement. </p> <p>The 72-year-old musician, who joined the band back in 2001, shared that he would be leaving the band following a shock health diagnosis. </p> <p>"It is with profound regret that, due to performance issues associated with my recently diagnosed Parkinsonism, I find that I must bow out of my role with <em>The Eagle</em>s while I can still do so gracefully," Smith told <em>People</em> magazine. </p> <p>"It's been a great quarter of a century, and I had hoped to be able to finish out this year with the band, but I must now do what’s best for all concerned."</p> <p>According to<em> Parkinsons.org.uk</em>, parkinsonism is "an umbrella term used to cover a range of conditions that share similar symptoms to Parkinson's".</p> <p>Bandmate and founding member of <em>The Eagles, </em>Don Henley, also released a statement praising Smith's talents, adding that the group will "be forever grateful" for his contributions to the band and their tour. </p> <p>“Steuart Smith has retired from touring. <em>The Eagles </em>will be forever grateful for the extraordinary talents that he brought to both our recordings and live performances," he told the publication. </p> <p>"Steuart will be greatly missed, but he will always be a part of our musical family. We know our many fans join us in wishing him well."</p> <p><em>The Eagles, </em>were formed in 1972 with founding members Henley, Glenn Frey, Bernie Leadon and Randy Meisner. They are known for their hit songs like<em> Hotel California</em> and <em>Lyin Eyes</em>. </p> <p><em style="box-sizing: inherit; margin: 0px; padding: 0px; border: 0px; font-size: 16px; vertical-align: baseline; color: #323338; font-family: Figtree, Roboto, 'Noto Sans Hebrew', 'Noto Kufi Arabic', 'Noto Sans JP', sans-serif; background-color: #ffffff; outline: none !important;">Image: SplashNews.com/ Shutterstock Editorial</em></p>

Caring

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Some ancient Romans got to retire with a pension at 42, but retirement’s changed a bit over the centuries

<div class="theconversation-article-body"> <p><em><a href="https://theconversation.com/profiles/anthony-asher-247115">Anthony Asher</a>, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW Sydney</a></em></p> <p>Over the ages, there have been broadly three reasons why people have retired.</p> <p>Some are forced to by poor health – theirs or someone they care for. Others have alternative income sources, meaning they don’t rely on a regular pay cheque. And some are made to retire by an employer who wants to overhaul staffing.</p> <p>But where did the idea of retirement come from? And how was it handled in ancient times?</p> <h2>Origins of support</h2> <p>Retirement support – which these days comes in the form of superannuation or a government pension – dates back to ancient history in various forms.</p> <p>Some forms of retirement support were funded by local taxes or tithes, others by donations. Some systems were corrupt and the coverage was patchy.</p> <p>Records are not readily available from other cultures, but we know a little about ancient Rome and English history since then.</p> <p>Emperor Augustus, who ruled after Julius Caesar died, set up a <a href="https://pensionresearchcouncil.wharton.upenn.edu/wp-content/uploads/2020/01/03Chap3.pdf">scheme</a> for Roman soldiers more than 2,000 years ago. The scheme aimed to ensure they retired while still strong and healthy, and would be less likely to cause trouble.</p> <p>The scheme paid a decent amount for soldiers after 25 years of service, so retirement age could be as young as 42.</p> <p>Pensions for older people in need also have ancient origins. The New Testament <a href="https://biblehub.com/1_timothy/5-9.htm">Bible</a> records the churches had schemes for needy widows right from the beginning.</p> <p>In the early Middle Ages, monasteries often provided for the needy, but Henry VIII famously <a href="https://en.wikipedia.org/wiki/Dissolution_of_the_monasteries">closed them</a> and took their assets. A fair share of their assets ended up with <a href="https://en.wikipedia.org/wiki/John_Russell,_1st_Earl_of_Bedford">high government officials</a> after the king’s takeover.</p> <p>Industry funds can also be seen to date back <a href="https://www.britannica.com/money/friendly-society">at least to the Middle Ages</a>, where the trade guilds provided for members and their families who fell on hard times.</p> <p>Retail funds mainly began as <a href="https://www.google.com/search?client=firefox-b-d&amp;q=history+of+life+insurance">mutual life insurance companies</a> that began more than 200 years ago.</p> <p>In the 18th century, the East India Company and the Bank of England began <a href="https://sas-space.sas.ac.uk/9224/1/McIlvenna%20PhD%20final.pdf">offering pensions</a>. These were at first discretionary based on need and loyalty, but later covered all employees. This idea then spread to other larger companies such railways and banks.</p> <p>As modern states developed the capacity to collect income taxes, it became feasible to provide comprehensive retirement benefits funded by central government.</p> <p>Beginning with <a href="https://www.ssa.gov/history/ottob.html">Germany in 1889</a>, developed countries began introducing universal national age pension arrangements.</p> <p>Unfortunately, a number of countries, such as <a href="https://www.uncdf.org/article/8799/governor-innovation-key-to-expanding-insurance-and-pension-coverage-in-png">Papua New Guinea</a>, still do not have the capacity to provide a universal safety net to cover older people.</p> <h2>Retirement in Australia</h2> <p>Three Australian states <a href="https://treasury.gov.au/publication/economic-roundup-centenary-edition-2001/article-3-towards-higher-retirement-incomes-for-australians-a-history-of-the-australian-retirement-income-system-since-federation">began schemes</a> in 1900, and the federal government provided a universal (but means tested) scheme from 1909.</p> <p>Most Australian retirees seem to enjoy a favourable standard of living. The <a href="https://grattan.edu.au/news/5-key-takeaways-from-the-retirement-income-review/">Grattan Institute</a> finds that the poorest 30% are, in fact, better off in retirement.</p> <p>Massive house price and rental inflation in the last 30 years, however, has gutted the living standards of those who don’t own their own homes. This gap in the safety net needs to be addressed.</p> <h2>Retirement ages</h2> <p>The Roman army model persists in some countries to this day: retirement from the US military is available <a href="https://sgp.fas.org/crs/misc/RL34751.pdf">after 20 years</a> of service.</p> <p>Retirement this early is obviously very expensive. The church scheme mentioned in the New Testament had a minimum age of 60, which is still the normal retirement age in many countries.</p> <p>The <a href="https://www.oecd.org/en/publications/2023/12/pensions-at-a-glance-2023_4757bf20.html">OECD</a> reports the average age of retirement in their 38 member countries is just under 64 for women, and just over 64 for men.</p> <p>Australians now qualify for the <a href="https://www.servicesaustralia.gov.au/who-can-get-age-pension?context=22526">age pension</a> at 67, which is slightly older than average.</p> <p>Retirement ages are, however, rising to allow for “population ageing”, a longer life expectancy and lower birth rates. Life expectancy at retirement age is the important number when calculating the cost of pensions.</p> <p>In ancient Rome it was about seven years and was <a href="https://www-cambridge-org.wwwproxy1.library.unsw.edu.au/core/services/aop-cambridge-core/content/view/30ED00A164475432670833C87D2F9E97/S2046164X00000405a.pdf/contributions_to_the_history_of_insurance_and_of_the_theory_of_life_contingencies_with_a_restoration_of_the_grand_pensionary_de_wits_treatise_on_life_annuities_concluded_from_no_vi.pdf">about the same</a> in Sweden in the middle of the 18th century.</p> <p>In Australia, the life expectancy of a 65 year old woman has risen from 12 years in 1895 to <a href="https://aga.gov.au/sites/aga.gov.au/files/2020-07/Australian%20Life%20Tables%202015-17%20v5.pdf">23 years on average</a>.</p> <h2>Earnings-related pensions</h2> <p>The <a href="https://www.ssa.gov/history/ottob.html">1889 German scheme</a> paid a minimum pension, plus an earnings-related component. Workers had a book for stamps for each week’s earnings.</p> <p>The Australian age pension has always just paid a minimum “liveable” amount. This has been subject to different means tests over time, but retirees have been able to supplement it with their own savings.</p> <p>Until 1987, only 40% of Australian employees were covered by employer sponsored schemes. Then in 1992, the <a href="https://www.apra.gov.au/superannuation-australia-a-timeline">Superannuation Guarantee Scheme</a> was introduced. Under this, employers were required to contribute 3% into all exployees’ super.</p> <p>The standard rate will rise to 12% in July next year.</p> <h2>The future</h2> <p>A growing ageing population will mean the Australian government and superannuation industry will need to adjust current support systems.</p> <p><a href="https://treasury.gov.au/consultation/c2023-441613">Over the next decade</a>, about 2.5 million Australians will move from accumulation (where you’re building up your super) to join the 1.6 million already receiving super benefits.</p> <p>We can expect more people to be living into their nineties and needing pensions for life.</p> <p>One government <a href="https://treasury.gov.au/sites/default/files/2023-12/c2023-441613-dp.docx">priority</a> is to make lifetime pensions as much part of the Australian system as they are in <a href="https://www.mercer.com/en-au/about/newsroom/mercer-cfa-institute-global-pension-index-2024/">the rest of the world</a></p> <p>And after 30 years of growing complexity in the rules covering superannuation, regulators are <a href="https://www.alrc.gov.au/publication/superannuation-and-the-legislative-framework-for-financial-services-fsl11/">counting the cost</a>, and <a href="https://www.brokernews.com.au/news/breaking-news/asic-targets-regulation-overhaul-286067.aspx">planning some simplification</a>.</p> <hr /> <p><em>This article is part of The Conversation’s retirement series, in which experts examine issues including how much money we need to retire, retiring with debt, the psychological impact of retiring and the benefits of getting financial advice. Read the rest of the series <a href="https://theconversation.com/au/topics/retirement-series-2024-168372">here</a>.<!-- 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/241121/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 --></em></p> <p><em><a href="https://theconversation.com/profiles/anthony-asher-247115">Anthony Asher</a>, Associate Professor in the UNSW Business School, <a href="https://theconversation.com/institutions/unsw-sydney-1414">UNSW 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/some-ancient-romans-got-to-retire-with-a-pension-at-42-but-retirements-changed-a-bit-over-the-centuries-241121">original article</a>.</em></p> </div>

Retirement Income

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Superannuation is complicated. A guaranteed government income in retirement would be simpler

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/brendan-coates-154644">Brendan Coates</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a></em></p> <p>Having compulsory super should help create a comfortable and stress-free retirement. But Australia’s super system is too complex for retirees to navigate.</p> <p>This can leave them stressed and lacking the confidence to spend their super savings.</p> <p>Our latest report, <a href="https://grattan.edu.au/report/simpler-s%5Buper/">Simpler super: taking the stress out of retirement</a>, recommends the federal government offer all Australians a lifetime <a href="https://moneysmart.gov.au/retirement-income/annuities">annuity</a> - a financial product that pays a guaranteed income for the rest of their lives.</p> <p>This would help retirees stress less, spend more, and enjoy their retirement years.</p> <h2>Stress prompts many to underspend super</h2> <p>For the first time, many Australians are entering retirement with significant super balances: Australians are retiring with an average super balance of more than A$200,000, and couples with about $300,000.</p> <p><a href="https://grattan.edu.au/news/balancing-act/">Despite having saved enough to be comfortable</a>, four in five people say planning for retirement is complicated, and 60% don’t think their retirements will be financially stress-free.</p> <p>Few retirees draw down on their retirement savings as intended. In fact, many are actually net savers – their savings continue to grow for decades after they retire.</p> <p><a href="https://grattan.edu.au/report/simpler-super/">Our analysis</a> of the <a href="https://www.abs.gov.au/participate-survey/household-survey/survey-income-and-housing">ABS Survey of Income and Housing</a> shows for those aged 60-64 in 2003-04, average super balances had grown by 37% in real terms by the time they were aged 76-80 in 2019-20.</p> <p>And their average net wealth, which excludes the equity in their home, grew by 14% over the same period.</p> <p>Australia’s <a href="https://www.apra.gov.au/quarterly-superannuation-performance-statistics-highlights-september-2024">$4 trillion</a> compulsory superannuation system is turning into a massive inheritance scheme. That’s not how super was supposed to work.</p> <h2>Retirees are given too little guidance</h2> <p>The super system makes most big decisions for working Australians, such as how much to contribute or how it’s invested. But once we retire there is little guidance about how to use our funds.</p> <p>More than four in five retirees are steered into account-based pensions. But partly because they’re anxious not to outlive their savings, this group manages their spending very cautiously.</p> <p>While on average, an Australian woman aged 65 today can expect to live until 88, they also have a one-in-five chance of either dying before age 81 or of making it to 94.</p> <p>Half of those retirees who use an account-based pension draw their super at legislated minimum rates, which if followed, leave 65% of super balances unspent by average life expectancy.</p> <p>This widespread use of account-based pensions makes Australia a global outlier. Retirees in most rich countries are automatically given – or otherwise strongly encouraged to choose – <a href="https://www.oecd.org/en/publications/2023/12/pensions-at-a-glance-2023_4757bf20.html">an income guaranteed to last their entire lives</a>.</p> <p>Research suggests having an income that is guaranteed to last until death <a href="https://www.researchgate.net/profile/Keith-Bender/publication/23647866_What_Makes_Retirees_Happy/links/0046353578c678a403000000/What-Makes-Retirees-Happy.pdf">can reduce stress</a> and <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3875802">boost retirees’ spending</a>.</p> <h2>Government could steer retirees into annuities</h2> <p>Our report argues retirees should be encouraged to use 80% of their super balance above $250,000 to purchase an annuity.</p> <p>The government could embed this pre-set guidance throughout the retirement income system. It could be included in all relevant communications with retirees from super funds, and especially at the point of retirement.</p> <p><a href="https://researchportalplus.anu.edu.au/en/publications/default-and-naive-diversification-heuristics-in-annuity-choice">Research shows</a> that retirees tend to choose the option put in front of them.</p> <p>The remaining super balance – $250,000, plus the remaining 20% of any savings above that level – would continue to be drawn down via an account-based pension. Retirees would still have to access their super for large purchases if needed.</p> <p>Using some super to buy an annuity could boost expected retirement incomes by up to 25%, compared to solely drawing on an account-based pension at legislated minimum rates.</p> <p>And it would ensure that the bulk of retirees’ incomes, irrespective of their super balances, would be guaranteed to last the rest of their lives.</p> <hr /> <p><iframe id="TYMjG" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/TYMjG/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <h2>Annuities should be provided by government, not super funds</h2> <p>But steering retirees into annuities offered via super funds is unlikely to work.</p> <p>Super funds <a href="https://www.superreview.com.au/news/superannuation/asfa-urges-against-cipr-longevity-component">have resisted</a> previous attempts by government to <a href="https://consult.treasury.gov.au/development-of-the-framework-for-comprehensive-income-products-for-retirement">require them to offer annuities to retirees</a>.</p> <p>Many people also struggle to understand and compare annuities. They often find it difficult to switch to a better deal later even if they can spot one.</p> <p>Recent <a href="https://www.fca.org.uk/publications/market-studies/retirement-income-market-study">experience in the UK</a> showed when required to purchase an annuity, most people simply took what their fund was offering and often got a poor deal.</p> <p>Designing a regulatory regime that overcomes these issues is a huge challenge. The best option, therefore, is for the government to directly offer annuities. It should offer all retirees a simple lifetime annuity as the baseline option.</p> <p>The government could also offer alternatives including investment-linked annuities, where payments are guaranteed for life, but payments could vary based on investment returns.</p> <p>Priced fairly, and managed by an independent agency, a government annuity would encourage there take-up. Retirees would be more confident that they’re getting a good deal.</p> <p>Annuity payments would be made from the pool of capital created by annuity purchases, with these investments managed by the Future Fund.</p> <p>Under reasonable assumptions we project the government annuity provider could be managing assets totalling 2.5% of GDP by 2040.</p> <p>Superannuation offers Australians the promise of a more comfortable and stress-free retirement. Government-offered annuities can help turn that dream into reality.</p> <p><em>Esther Suckling made substantial contributions to the research underpinning this article.</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/247383/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/brendan-coates-154644"><em>Brendan Coates</em></a><em>, Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</a> and <a href="https://theconversation.com/profiles/joey-moloney-1334959">Joey Moloney</a>, Deputy Program Director, Housing and Economic Security, <a href="https://theconversation.com/institutions/grattan-institute-1168">Grattan Institute</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/superannuation-is-complicated-a-guaranteed-government-income-in-retirement-would-be-simpler-247383">original article</a>.</em></p> </div>

Money & Banking

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Nick Kyrgios makes retirement announcement after Aus Open comeback

<p>Nick Kyrgios has made a candid admission about his participation in future Australian Opens as his comeback ended in tears. </p> <p>The 29-year-old returned to Melbourne after two years from the AO away to nurse an injury, although his return ended in disappointment in a straight-sets loss to Brit Jacob Fearnley.</p> <p>Many spectators were quick to point out that Kyrgios didn't seem like himself as his injury was affecting his serve and his endurance on the court. </p> <p>After looking down and out, he fought to the very end before crashing to the 7-6 (7-3), 6-3, 7-6 (7-2) loss.</p> <p>Speaking after the match, Kyrgios said he was “heartbroken” at being unable to perform at his show-stopping best, but added that he only played on for the packed John Cain Arena crowd cheering him on. </p> <p>“Realistically I can’t see myself playing singles again here,” he said.</p> <p>“It was special (atmosphere), taking that in, it was pretty good. I knew that I have doubles so I kind of was taking everything in tonight, in those moments, it was nuts."</p> <p>“I didn’t want to just throw in the towel and walk off or retire. I was hurting physically but I respect my opponent and the fans that waited hours to come see me play.”</p> <p>He later added: “Honestly, the reason I kept playing, tried to play tonight, was because of the fans. As I said, I don’t know how many times I’m going to be back here again."</p> <p>“That’s why I didn’t have headphones on, I wasn’t listening to music. I walked out there today, wanted to hear the crowd. There were some special moments.”</p> <p>Kyrgios still plans to team up with Thanasi Kokkinakis in the doubles and will continue to play out the season in singles.</p> <p>“It’s hard. When you’re competing for the biggest tournaments in the world and you’re struggling to win sets physically, it’s pretty tough,” he continued.</p> <p>“But I’ve still got a long year ahead. I’m trusting the process that I can still be able to do some cool things this year at some stage.”</p> <p>Despite the immediate devastation, Kyrgios was targeting a deep run at Wimbledon.</p> <p>“Obviously Wimbledon is a big one for me. I still feel like obviously, if I don’t have an abdominal strain, I feel when I sustained that five days before a grand slam, it’s not ideal,” he said.</p> <p>“Hopefully, if my body’s feeling good, I’ll be able to make some noise at Wimbledon.”</p> <p><em>Image credits: Rachel Bach/Shutterstock Editorial </em></p>

Retirement Life

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Readers response: What has been your approach to reducing or managing debt in retirement?

<p>We asked our readers for their holy grail tips for easing financial strain during retirement years, and the response was overwhelming. Here's what they said.</p> <p><strong>Elaine Ralph</strong> - Don’t accumulate debt, live very lightly, and don’t go to see specialists as they cost a fortune.</p> <p><strong>Karen Howson</strong> - Pay off every debt and stop spending.</p> <p><strong>John Fowler</strong> - We have always budgeted and try to plan for contingencies by allocating for them. We live on our credit card and pay it off when due. My wife has FND so I do all the cooking and keep it simple and cost effective and rarely dine out or eat take away. Our budget has always included allocated "pocket money" for personal spending.</p> <p><strong>Patricia Bennett</strong> - Try to be debt free (particularly mortgages) and stick to a budget.</p> <p><strong>Steve Smith</strong> - Don't have any, and make sure that you can pay your own way 100%. It's called "cut your coat according to your cloth". If you don't know how to budget then learn - it's never ever too late.</p> <p><strong>Barbara Everall</strong> - Stop going out as much as possible avoid the shops.</p> <p><strong>Marie Chong</strong> - Make sure you own your own home, before you retire.</p> <p><strong>Angela Chapman</strong> - Stop spending on unnecessary things.</p> <p><strong>Naomi Jeffrey</strong> - Hope for the best?</p> <p><em>Image credits: Shutterstock </em></p>

Retirement Income

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Prince Harry and Meghan Markle lend a hand to LA fire victims

<p>Prince Harry and Meghan Markle have been spotted lending a helping hand to those affected by the deadly wildfires in Los Angeles. </p> <p>The royal Californian residents, who live around 145 kilometres north of LA, were seen at the Pasadena Convention Centre on Friday handing out food and supplies alongside other volunteers.</p> <p>They also met with Pasadena mayor, Victor Gordo, and thanked first responders for their efforts amid the catastrophic fires, which have claimed at least 11 lives and destroyed tens of thousands of homes and iconic buildings. </p> <p>“It’s great people, great personalities and great heart for them to come out here and meet with the first responders, meet with the people who were affected,” Gordo told Fox 11 of his meeting with the pair. </p> <p>Mr Gordo added that their visit “really buoyed the spirits of the first responders” and that “people were very happy to see them”.</p> <p>“They want to be as helpful as they can be … we visited with some of the affected families in some of the burnt-out areas in Pasadena and Altadena,” he said. </p> <p>“They took the time to meet the people that are affected and spent time. They’re just very caring people who are concerned for their friends and neighbours.”</p> <p>Mr Gordo went on to explain that the high-profile couple had visited the World Centra Kitchen “anonymously” by “serving food with masks” and wearing baseball caps, insisting they weren’t there for “publicity”, but were keen to “work”.</p> <p>“We went to visit some of the families in the impacted area and view first-hand some of the impacted area and then they wanted to go visit the first responders and personally thank them for their efforts to help our families and their neighbours,” Mr Gordo said.</p> <p><em>Image credits: Fox 11</em></p>

International Travel

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"Totally heartbroken": Disabled Australian man dies in LA fires

<p dir="ltr">A heartbroken mother has recalled the moment she tried to save her son from the wildfires ravaging Los Angeles. </p> <p dir="ltr">In an emotional post on X, Shelley Sykes confirmed that her 32-year-old son, Australian citizen Rory Sykes, has died on Thursday after she lost the water supply to hoses she was using to extinguish embers on their home's roof. </p> <p dir="ltr">Rory, who was born blind and with Cerebral Palsy, lived in a self-contained cottage at the back of the family’s home in Malibu, which was decimated by the ongoing fires in the Californian city. </p> <p dir="ltr">"Rory's feet with the heat had started to swell, and he couldn't walk very well. And he also had  problems with his tummy. So he didn't want to be far away from the bathroom," Shelley told <em>Weekend Today</em>.</p> <p dir="ltr">"So he said, Mum, you go, I'm staying. Well, there's no way I could leave."</p> <p dir="ltr">"So I stayed in the main property with my two peacocks in a bathroom because it was hard to breathe. Sitting on the floor with bottled water and trying to keep wet."</p> <p dir="ltr">Keeping an eye on her son’s cottage, Shelley sprang into action when she saw embers start to land on Rory’s roof. </p> <p dir="ltr">After her calls to emergency services didn’t go through and no water came out of the garden hose, she jumped in her car and drove to the nearest fire station. </p> <p dir="ltr">"They said, 'what are you doing? You're not supposed to be here'. And I said, 'please help Rory. His cottage has got flames on it and I've got no water',” she recalled. </p> <p dir="ltr">"They said, 'Shelley, we've got no water either'."</p> <p dir="ltr">When Shelley and the fire crews returned to try and save Rory, it was too late.</p> <p dir="ltr">"When I got there, the three cottages were down to the ground and just black ash," she said.</p> <p dir="ltr">"My house was fine, the big main house, but there were embers flying everywhere and it was hard to breathe."</p> <p dir="ltr">Shelley said her son Rory was a "very courageous man" who had overcome huge adversity in his life.</p> <p dir="ltr">"They said he'd never see or walk, and he defied all the odds," she said.</p> <p dir="ltr">"He loved Australia. He grew up as an Aussie boy, and has the Aussie accent…. He was my baby."</p> <p dir="ltr">British-born Rory moved to Australia as a child and attended school in Sydney but has been living in the US more recently.</p> <p dir="ltr">Shelley said she is "totally heartbroken" by Rory’s death, writing on X, "A wonderful son, a gift born on mine & his grandma’s birthday... a true humanitarian.”</p> <p dir="ltr"><em>Image credits: X (Twitter) </em></p>

Caring

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