Where Will You Be At Age 65?

December 18, 2019

Where you would be at the age of 65? This is a question the government wanted to know, and several years ago they did a census to find out financially where people will be. The results, I’ve got to tell you, are absolutely staggering.

What they found out was 15% actually don’t even make it to the age of 65. Of the ones that do 74% or 87% of people are retiring under pension. That means 87% of people are on track 100% for the pension. In today’s figures, 2019, if you’re a single person that’s a whopping $458 per week. If you’re a couple, that’s $690 per week. I don’t know about you but I’m not sure what kind of comfortable lifestyle you can have on between $400 to $700 per week.

Not very comfortable considering that you’ve worked for 40 years of your life day in and day out, 40 hours a week, 40 years of your life, to retire on something that’s probably less than 40% of what you’ve currently been earning. That’s the reality though, and 87% of people are on track for that.

Working To Survive At Retirement

Eight percent of people are on track but are still working just to survive. When you look at those people, and I see them often – they sit down with me, those clients of mine, they’re still working because one they’re still got a mortgage, they’ve still got a debt, and they still want to have to pay off that debt. They can’t survive on the pension so they have to continue to work.

I don’t know about you, but I don’t want to be continually working after 65, or be in a position where I am forced to work, but rather, be in a position where I could choose to work, and that should be the goal. When we look at that 3% are financially secure and 1% is considered wealthy.

Let me ask you this question – when you think of the top 1% of people aged 65 what kind of income do you think you would have to earn on a per annum basis to be in that top 1%? Just think about it.

When I ask this question to people, people tell me, “Shane, half a million a year, one million, five million, ten million.” – and that probably makes sense. You would think that if you were going to be in the top 1% of Australian income earners at the age of 65, it would stand to reason that you should be making millions of dollars a year, correct?

Will You Be In The Top 1%?

Well, the sad reality is that if you’re making more than $1,000 per week at retirement then you’re in the top 1% of Australians.

When I sit down with people and I talk to them and say how much do you want to earn at retirement, people were telling me they want to earn $50,000 – $100,000. For most people, $100,000 is double what they will earn at retirement. 99% of people won’t achieve that $100,000 goal, 1% will.

When you examine that 1% of people, you’ll see that they have chosen a particular vehicle that they have then gone and accelerated in. What vehicle are we talking about? The vehicle is either property, shares, or it’s business.

Wealth Creation Vehicles

In life, there’s only five legal vehicles to create wealth. Three of the main ones are property, shares, and business – that’s where you have to choose from.

The successful people in the top 1% have chosen one of those vehicles or one or more of those vehicles and really accelerated in that vehicle – that’s the secret to get into the top 1%.

If you want to avoid the pension, you have to do something different to what most people are doing. Look around you – look at all the people that you know and do the opposite. That would get you into the top 1%. Focus on the three vehicles, business, property, and shares. Choose one that really resonates with you and feels comfortable with you. Then, put the pedal to the metal and accelerate in that, and you will be in the top 1% and avoid the pension.