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An experiment conducted by the project made some millennials “shocked” about their future.
The eight millennials who accepted the “Project” pension experiment felt “emotional” and “stunned” by their findings.
Young Australians between the ages of 26 and 35 were asked about their ideal retirement life.
“I want to retire at the age of 40. I want to make sure that basically I can book a first-class ticket to anywhere in the world without having to look at the price,” said Logan, 26.
The 29-year-old Beth wants it to be stress-free, relaxed and a little adventurous, while the 34-year-old Nicky’s goal is to rely on her own money instead of receiving an elderly care pension.
In the experiment, millennials stood in front of a series of circles leading to the red line. If the financial issues about them apply to them, they must move forward.
The closer they are to the red line, the greater the chance that they will encounter financial stress in retirement.
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But one suggestion shocked the participants.
Ellie Fordham, Dozzi’s financial adviser, explained: “If you are single, you will need nearly $1 million in retirement assets to have no debts and a fully paid-off house without relying on pensions,” a financial planning company based in Brisbane Company, he helped carry out this experiment.
In response to the $1 million figure, 27-year-old Joshua said: “To be honest, I feel a little emotional. I think this is a bit of a wake-up call.”
The 31-year-old Ben said he was not sure whether he could do it “even if he has been in a stable job full-time for 30 years.”
Mother Beth panicked most. “If Ben is scared than I am scared, because I think I am the closest to this line of all the people here,” she said.
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Ms. Fordham told millennials that to retire comfortably, individuals need $545,000, while couples need a super pot of $640,000, but there is a problem. It only applies if they don’t pay rent, even if they have so much money, they still need to rely on pensions.
“My current pension balance is just over $100,000, and at the age of 29, I feel that I am very close to the $500,000 I must have,” Eva said.
But for Joshua, this is a different story. “I still don’t feel that my finances are good, I don’t have much pension, so that’s why I’m here,” he explained. “It’s really scary. I’m 27 years old and I might be worth $20,000.”
During one stage of the experiment, all the women in the room were asked to take a step forward.
“How does it feel to have been disadvantaged because of gender?” Ms. Fordham asked.
She revealed that women’s super balances are usually 40% lower than men’s.
“I have always been a single-parent family, staying at home (up to) six or seven years, so this is a large part of the labor force and pension, so I have a lot of things to do,” Beth said.
If participants are renting a house and are still trying to break into the ownership of the house, they will also be asked to come forward.
26-year-old Eric (Eric) said: “All house prices are rising immediately, which scares me.”
“I live at home, but I want to buy my own house (but) trying to afford it now is crazy,” Joshua added.
Ms. Fordham explained that home ownership is an important factor in young people’s retirement.
“Since 1995, the number of homeowners under the age of 35 has been reduced by half, and now most properties are concentrated in the hands of people 65 and older. Considering how important it is to have your own home to enjoy a comfortable retirement life,” she Say. Say.
Millennials are also required to move forward if their income is less than $62,500, they withdraw their pension early or it may take more than 6 months.
Ms. Fordham said that the rise of the gig economy may also have a significant impact on the retirement of millennials.
“Currently, less than half of Australians are in permanent full-time jobs, and by 2025, 75% of the workforce will be made up of millennials,” she said. “With the rise of the gig economy, more and more millennials will not deposit donations into their retirement funds. This is really worrying.”
If participants did not make additional contributions to their pensions, they were also asked to move forward-Ms. Fordham suggested that this is a good start for millennials to obtain pensions.
At the end of the experiment, Logan was the only one who was confident of his retirement.
“I am 100% on a good track and I am excited about where I sit today, which shows that everything my mother taught me has paid off,” he said.
After the show aired, host Carrie Bickmore said that she was shocked by one incident.
“I’m too naive. To be honest, I think we have 40% less pensions than women than men,” she said.
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