Global Trends Decreasing Your Pension. By Tina Zawila.

If you are an aged pensioner I'm sure you have heard that there will be changes to the asset test limits next year which may impact on your entitlement to the aged pension.  Even if you are not currently receiving a pension, but intend to apply next year, you should seek professional advice in the next few weeks.  If you are receiving a pension before 1st January 2017, but as a result of the asset test changes will lose your pension next year, you will be able to retain your Seniors Health Care Card for life, even if you never receive a pension in the future.  So it might be worthwhile to apply for a pension (or part pension) before the new year rolls around. 

       

So why is the Government tweaking with aged pensions?  Quite simply, it's because of demographics.  We are an aging population with life expectancies increasing and falling birth rates.  This increasing proportion of elderly people challenges the solvency of social welfare systems including pensions and healthcare.  This is not just a problem in Australia, the world's population of people older than 65 is expected to double to 1 billion by 2030.   

Our changing demographics represents one of the top "Global Trends" in the world today, and governments will need to implement bold policies to cope with these demographic changes.

However, there are other changes happening to our world population.  Seemingly on the other side of the coin, there is also a youth "explosion" happening in developing countries.  Nigeria's population is expected to exceed America's by 2045 and Africa's population will double by 2050.  These young people will need jobs and so these regions will face the challenge of integrating their youth into saturated labour markets.  

Add to this the way technology is changing the way that people work, and the increasing levels of education available in emerging markets, the face of our global workforce will change significantly with physical borders almost becoming irrelevant.

There is an underlying theme that connects all of the demographic trends we're seeing - the world is becoming a more diverse place.  

If you need help interpreting how future global trends will impact on your business or your financial investments, call our professional team at Sothertons Gladstone on 4972 1300.