• TFC Financial

Your Retirement. A Glimpse into the Future.

Demography is the study of population – births, deaths, ages, life spans, migration, and so on. Governments can record the changes but in free societies can do very little to change the overall trends. It’s a bit like the tide coming in – you can adjust where you sit on the beach but you can’t stop the water rising.

Research by worldwide organisations including the United Nations and European Union shows disturbing trends such as these:​

  • In Australia, by 2020 there will be more people aged 65 than 1-year-olds. At this rate, there will never again be more children than grey heads.

  • In 1980 Australia’s median age was 29. By 2050 it will be almost 50.

  • By 2050, there will be only 2.7 people of working age to support each Australian aged 65 years and over. This is compared to 5 in 2010.

  • By 2055 there will be around 40,000 Australians aged 100 years or over.

  • By 2050 there will be twice as many older citizens in the world than children, with the exception of Russia and China.


There are three irreversible demographic trends behind these figures. First is the bulge in retirement from the baby boomers (those born between 1946 and 1964). Many of the early baby boomers have either already retired or are close to it, and the late boomers are well into planning for their retirement. This bulge will guarantee a high proportion of older people in our society in the future.

Second is the fall in fertility rate. In developed societies we are not having enough babies to replace ourselves.

And thirdly, better nutrition and medical care means we are living longer.


These three trends mean:​

  • The number of employed people, ie. taxpayers, will dramatically reduce.

  • The number of retired people needing social security, health and aged care support will rise.

  • Government budgets will come under increasing pressure as society struggles with the problem of supporting a very large population of older people.

  • Financial systems will come under threat as retirees sell off their assets to fund their retirement.

Every nation’s medical and social security system depends on taxpayer money to fund its existence. Politicians may be unwilling to admit it but some unpopular decisions will have to be made. The simple choices are to raise taxes or restrict access to government benefits to only the most needy. The longer the decisions are delayed, the more difficult the transition will be.

The constant decline in birth rates will stunt the growth of national economies. As the consumer population decreases, production and product advancement will decrease due to a lack of demand, and economies will follow.

What does this mean for you?

Of course, it depends on your age and financial situation. Self-sufficiency in retirement should be a goal for everyone – nobody wants to be reliant on a heavily burdened and potentially restrictive welfare system. Being self-sufficient will give you the freedom to choose the lifestyle you want.

If you are a long way from retirement, make a commitment now to be a self-funded retiree. Investigate the many opportunities to accumulate a healthy superannuation balance by your preferred retirement age. With more time up your sleeve the contributions can be far more manageable.

If you are planning on retiring soon, you may need to review what retirement means to you and look at other options such as working a few more years.

This all sounds like a reality we would rather not hear, but like the tide coming in, there is not much we can do to stop it.

Is it time to review your retirement plans with a financial planner?

Talk to your Adviser at TFC Financial about the best ways to manage your investment risk.

Phone Us: 07 4639 1399


Toowoomba Financial Centre Pty Ltd ABN 88073088070, trading as TFC Financial is a corporate authorised representative of Charter Financial Planning Limited ABN 35 002 976 294 Australian Financial Services Licensee License number 234665. This article contains general advice only. You need to consider with your financial planner, your investment objectives, financial situation and your particular needs prior to making any strategy or product decision.


Phone:  (07) 4639 1399

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Office:   Canberra Place 123 Margaret Street

              Toowoomba QLD 4350

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Postal:   PO Box 1591, Toowoomba QLD  4350


December 4, 2018

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Toowoomba Financial Centre Pty Ltd ABN 88 073 088 070, trading as TFC Financial is a corporate authorised representative of Australian Financial Services Licensee 234665, Charter Financial Planning Limited ABN 35 002 976  This website contains general advice only. You need to consider with your financial planner, your investment objectives, financial situation and your particular needs prior to making any strategy or products decision.

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