Lucy Dean's recent article in the Australian Financial Review comprehensively analyses a groundbreaking research report by renowned demographer Bernard Salt. In her piece, Dean delves into the shifting paradigms of adulthood and retirement in Australia, unveiled by Salt's research.
Redefining Life Stages
Dean underscores the significance of Bernard Salt's research in reshaping our understanding of life stages in Australia. In the 1950s, life was traditionally divided into three stages—childhood, adulthood, and old age. However, Salt's research reveals a more complex and nuanced landscape.
Prolonged Adolescence
Dean delves into the striking extension of adolescence, which now spans from 13 to 28. This prolonged phase is attributed to the growing demand for knowledge-based jobs requiring higher education, causing individuals to delay conventional life milestones.
Extended Working Lives
The article emphasises how advancements in healthcare and the prevalence of knowledge-based professions have led to longer working lives for Australians. This shift prompts individuals to reconsider their retirement plans and financial strategies.
Shifting Wealth Goals
Dean reports on the changing perspective on wealth in Australia. Homeownership, once the primary measure of wealth, is no longer the sole focus. Australians are exploring alternative avenues such as savings, equities, and managed investments to secure their financial futures.
A Holistic View of Wealth
The article highlights that the concept of wealth has evolved to encompass financial independence and factors such as contentment, good health, freedom, absence of stress, time, and a sense of success.
The Emergence of a "Retired" Cohort
Dean introduces the "retired" cohort concept, reflecting the growing emphasis on post-retirement life planning. This development aligns with changing dynamics in an aging population and the need for innovative retirement strategies.
Policy Challenges
Given their recent emergence, the article acknowledges the challenges policymakers face in addressing these new concepts. The absence of historical context complicates efforts to meet the financial needs of an aging population.
The Role of Financial Advice
AMP CEO Alexis George underscores the importance of personal financial advice in light of evolving goals and aspirations among Australians. Financial literacy and effective planning are essential to achieving unique passions and objectives.
Lucy Dean's article in the Australian Financial Review illuminates the profound insights offered by Bernard Salt's research, transforming our understanding of adulthood, retirement, and wealth in contemporary Australia. It is a valuable resource for individuals and policymakers navigating these evolving life stages and financial objectives.
