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How to keep doing good once you’re gone

<p>Most of us like to think that once we are no longer walking the Earth, we can still leave a legacy to mark our time here and contribute positively to those left behind.</p> <p>Doing so is not only possible but, as you’ll see below, fairly straightforward – providing you do some basic preparation beforehand.</p> <p>Seek the help of professional advice to ensure your plans can be enacted in full and deliver the best possible outcomes for everyone involved.</p> <p><strong>Have your affairs in order</strong></p> <p>Make things simpler for your grieving loved ones by having your wishes clearly outlined in writing, with specific instructions that leave no room for misinterpretation. Doing so makes your wishes easier to implement, faster to enact and reduces fights among your beneficiaries.</p> <p>Keep your will and other affairs updated as circumstances change too, so that everyone you want is included (such as kids and grandkids) and those you don’t, aren’t given an unexpected windfall (such as your ex or an adult child’s ex).</p> <p><strong>Provide for everyone</strong></p> <p>Providing for everyone is not necessarily straight forward, especially if you have a blended family. </p> <p>For instance, leaving your share of your home to your children from a previous relationship could lead to disagreements if your partner doesn’t want to leave.</p> <p>Instead, think about how your assets can be divided fairly without disadvantaging anyone. Children could be nominated beneficiaries of your superannuation and/or life insurance, leaving your home for your partner. </p> <p><strong>Keep wealth flowing</strong></p> <p>Certain structures can allow you to keep giving to your descendants long after you’re gone – offsetting their income and providing far greater wealth over time than any lump sum could achieve.</p> <p>A family or testamentary trust allows ongoing wealth creation through shared assets, with regular dividends paid out, creating a family legacy that can last for generations. Or a family company can allow a commercial entity to continue trading and growing as an asset.</p> <p><strong>Manage tax impacts</strong></p> <p>Implement tax-effective strategies that maximise how much your beneficiaries actually receive and minimise what the tax man pockets. </p> <p>While there isn’t an inheritance tax per se, beneficiaries can be hit with Capital Gains Tax (CGT) on asset sales plus transfer costs to put an asset into their own name – not to mention the ongoing maintenance and compliance costs of asset ownership.</p> <p>In some instances, your loved ones may benefit more if you sell assets now and leave them the proceeds, rather than leave them the asset – and its associated tax bill – once you’re gone.</p> <p><strong>Ensure loved ones are home and housed</strong></p> <p>Property is perhaps the biggest of all sources of wealth, yet it is increasingly difficult for younger people and singles to get (and stay) on the property ladder.</p> <p>Ensure everyone can reap the benefits of property ownership over their own lifetime, either by transferring ownership of properties in your name or contributing chunks of cash towards a deposit. </p> <p>However, it’s important to do so sustainably – gifting grandkids a large property they can’t afford to maintain isn’t going to work.</p> <p><strong>Charitable donations</strong></p> <p>Many people like to support charities and social causes once they are gone. Consider the end user here and what they stand to benefit from your donation – whether it be people, planet or both.</p> <p>It could be leaving a lump sum on your death, or regular ongoing donations from your estate. You may wish to do so anonymously, or include a message with your donation outlining your reasons why that particular charity/cause is important to you and what you hope the money will go towards.</p> <p>Donations may not necessarily be financial either – perhaps you have a valuable historic artefact that others could enjoy if donated to a museum? </p> <p><strong>Organ donation</strong></p> <p>The greatest gift of all is not money but life itself. So, consider whether organ donation is something you wish to do.</p> <p>While not suitable for everyone, and dependent on a range of factors including your age, health and religious beliefs, a single organ donor can save up to seven lives, as well as improve the quality of life of numerous others through eye and tissue donation.</p> <p>That is a lot of life you can give to others – and all without costing your own loved ones a cent!</p> <p><em><strong>Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a></strong></em></p> <p><em><strong>Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.</strong></em></p> <p><em><strong>Image credits: Shutterstock </strong></em></p>

Retirement Income

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Is it worth selling my house if I’m going into aged care?

<p><em><a href="https://theconversation.com/profiles/colin-zhang-1234147">Colin Zhang</a>, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a></em></p> <p>For senior Australians who cannot live independently at home, residential aged care can provide accommodation, personal care and general health care.</p> <p>People usually think this is expensive. And many assume they need to sell their home to pay for a lump-sum deposit.</p> <p>But that’s not necessarily the case. Here’s what you need to consider.</p> <h2>You may get some financial support</h2> <p>Fees for residential aged care are complex and can be confusing. Some are for your daily care, some are means-tested, some are for your accommodation and some pay for extras, such as cable TV.</p> <p>But it’s easier to think of these fees as falling into two categories:</p> <ul> <li> <p>an “entry deposit”, which is usually more than <a href="https://www.health.gov.au/sites/default/files/documents/2020/06/eighth-report-on-the-funding-and-financing-of-the-aged-care-industry-july-2020-eighth-report-on-the-funding-and-financing-of-the-aged-care-industry-may-2020.pdf">$A300,000</a>, and is refunded when you leave aged care</p> </li> <li> <p>daily “<a href="https://www.myagedcare.gov.au/aged-care-home-costs-and-fees">ongoing fees</a>”, which are $52.71-$300 a day, or more. These cover the basic daily fee, which everyone pays, and the means-tested care fee.</p> </li> </ul> <p>To find out how much government support you’ll receive for both these categories, you will have a “<a href="https://www.myagedcare.gov.au/income-and-means-assessments/#aged-care-home">means test</a>” to assess your income and assets. This means test is similar (but different) to the means test for the aged pension.</p> <p>Generally speaking, the lower your aged-care means test amount, the more government support you’ll receive for aged care.</p> <p>With full support, you don’t need to pay an “entry deposit”. But you still need to pay the basic daily fee (currently, <a href="https://www.myagedcare.gov.au/aged-care-home-costs-and-fees">$52.71</a> a day), equivalent to 85% of your aged pension. If you get partial support, you pay less for your “entry deposit” and ongoing fees.</p> <h2>You don’t need a lump sum</h2> <p>You don’t have to pay for your “entry deposit” as a lump sum. You can choose to pay a rental-style daily cost instead.</p> <p>This is calculated as follows: you multiply the amount of the required “entry deposit” by the maximum permissible interest rate. This rate is set by government and is currently at <a href="https://www.health.gov.au/sites/default/files/documents/2021/03/schedule-of-fees-and-charges-for-residential-and-home-care-schedule-from-20-march-2021_0.pdf">4.01%</a> per year for new residents. Then you divide that sum by 365 to give a daily rate. This option is like borrowing money to pay for your “entry deposit” via an interest-only loan.</p> <p>You can also pay for your “entry deposit” with a combination of a lump sum and a daily rental cost.</p> <p>As it’s not compulsory to pay a lump sum for your “entry deposit”, you have different options for dealing with your family home.</p> <h2>Option 1: keep your house and rent it out</h2> <p>This allows you to use the rental-style daily cost to finance your “entry deposit”.</p> <p><strong>Pros</strong></p> <ul> <li> <p>you could have more income from rent. This can help pay for the rental-style daily cost and “ongoing fees” of aged care</p> </li> <li> <p>you might have a special sentimental attachment to your family house. So keeping it might be a less confronting option</p> </li> <li> <p>keeping an expensive family house will not heavily impact your residential aged care cost. That’s because any value of your family house above <a href="https://www.health.gov.au/sites/default/files/documents/2021/03/schedule-of-fees-and-charges-for-residential-and-home-care-schedule-from-20-march-2021_0.pdf">$173,075.20</a> will be excluded from your <a href="https://www.servicesaustralia.gov.au/organisations/health-professionals/services/aged-care-entry-requirements-providers/residential-care/residential-aged-care-means-assessment">means test</a></p> </li> <li> <p>you can still access the capital gains of your house, as house prices rise.</p> </li> </ul> <p><strong>Cons</strong></p> <ul> <li> <p>your rental income needs to be included in the means test for your aged pension. So you might get less aged pension</p> </li> <li> <p>you might need to pay income tax on the rental income</p> </li> <li> <p>compared to the lump sum payment, choosing the rental-style daily cost means you will end up <a href="https://www.smh.com.au/money/super-and-retirement/seek-help-when-weighing-up-how-to-pay-for-your-aged-care-20191202-p53g16.html">paying more</a></p> </li> <li> <p>you are subject to a changing rental market.</p> </li> </ul> <h2>Option 2: keep your house and rent it out, with a twist</h2> <p>If you have some savings, you can use a combination of a lump sum and daily rental cost to pay for your “entry deposit”.</p> <p><strong>Pros</strong></p> <ul> <li> <p>like option 1, you can keep your house and have a steady income</p> </li> <li> <p>the amount of lump sum deposit will not be counted as an asset in the pension means test.</p> </li> </ul> <p><strong>Cons</strong></p> <ul> <li> <p>like option 1, you could have less pension income, higher age-care costs and need to pay more income tax</p> </li> <li> <p>you have less liquid assets (assets you could quickly sell or access), which could be handy in an emergency.</p> </li> </ul> <h2>Option 3: sell your house</h2> <p>If you sell your house, you can use all or part of the proceeds to pay for your “entry deposit”.</p> <p><strong>Pros</strong></p> <ul> <li> <p>if you have any money left over after selling your house and paying for your “entry deposit”, you can invest the rest</p> </li> <li> <p>as your “entry deposit” is exempt from your aged pension means test, it means more pension income.</p> </li> </ul> <p><strong>Cons</strong></p> <ul> <li>if you have money left over after selling your house, this will be included in the aged-care means test. So you can end up with less financial support for aged care.</li> </ul> <h2>In a nutshell</h2> <p>Keeping your house and renting it out (option 1 or 2) can give you a better income stream, which you can use to cover other living costs. And if you’re not concerned about having access to liquid assets in an emergency, option 2 can be better for you than option 1.</p> <p>But selling your house (option 3) avoids you being exposed to a changing rental market, particularly if the economy is going into recession. It also gives you more capital, and you don’t need to pay a rental-style daily cost.</p> <hr /> <p><em>This article is general in nature, and should not be considered financial advice. For advice tailored to your individual situation and your personal finances, please see a qualified financial planner.</em></p> <p><em>Correction: this article previously stated the amount of lump sum deposit will not be counted as an asset in the aged-care means test, as a pro of option 2. In fact, the amount of lump sum deposit will not be counted as an asset in the pension means test.</em><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/161674/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><a href="https://theconversation.com/profiles/colin-zhang-1234147"><em>Colin Zhang</em></a><em>, Lecturer, Department of Actuarial Studies and Business Analytics, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/is-it-worth-selling-my-house-if-im-going-into-aged-care-161674">original article</a>.</em></p>

Retirement Income

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The biggest faux pas for self-funded retirees

<p>Whether you have been retired for some time or are still looking forward to the time you can step back, chances are there are important considerations you may have overlooked.</p> <p>From planning and pensions to family and housing, these are the biggest self-funded retirement mistakes I come across, and some insights into how to avoid repeating them:</p> <ol> <li><strong>Lack of a plan</strong></li> </ol> <p>Not having a retirement plan is perhaps the most basic faux pas, but often the most costly.</p> <p>A detailed plan should cover things like:</p> <ul> <li>When you AND your partner will retire </li> <li>Where you will live (you may want to downsize, relocate, seek assisted living)</li> <li>Anticipated living costs (living situation, health, lifestyle)</li> <li>How you will spend your time (hobbies, travel, volunteering, time with family)</li> <li>Strategies to maximise investments and superannuation</li> <li>Tax minimisation strategies</li> </ul> <p>Remember: failing to plan = planning to fail.</p> <ol start="2"> <li><strong>Poor planning</strong></li> </ol> <p>Having a plan is the starting point, but it won’t get you far if it’s incomplete, not updated as circumstances change, or omits critical factors.</p> <p>For couples, not considering age differences is a big mistake. One partner retiring before the other can have big shifts on financial and tax dynamics and even the relationship itself. Then there is end-of-life care, particularly if the younger partner is still working.</p> <p>Not building in a safety buffer is another no-no. Too many retirees have been caught out by the high inflation of recent years, having calculated their anticipated income needs on much lower living costs.</p> <p>Balance short-term and long-term goals: being overly conservative early on can limit your financial situation down the track.</p> <p>And no plan is complete without contingencies for worst case scenarios – insurances, protections, back-up options.</p> <ol start="3"> <li><strong>Insecure housing </strong></li> </ol> <p>Government data has long shown major differences in quality of life for retirees who own their home versus those who don’t. </p> <p>Homelessness or insecure housing, the mercy of the rental market, and inability to customise your home as you age or if you need specialised support with disability or health issues are some of the challenges renters face.</p> <p>Furthermore, public estimates of how much the average Australian needs to retire typically assume home ownership – meaning rent is not part of that calculation. That’s a huge living cost you may not have factored into your retirement planning. </p> <ol start="4"> <li><strong>Unclaimed pensions</strong></li> </ol> <p>Contrary to popular belief, self-funded retirement and claiming a pension are not mutually exclusive. </p> <p>You may be eligible for a part-pension, calculated pro-rata according to the value of your assets and other income. Claiming a part-pension, no matter how small it may be, reduces how much income you need to draw down from super – making it last longer. </p> <p>Don’t fall into another common trap when applying – overestimating your assets. It’s easy to assume your non-monetary assets are worth more than what they really are, reducing how much pension you receive or negating your eligibility altogether.</p> <ol start="5"> <li><strong>Depleted Bank of Mum and Dad</strong></li> </ol> <p>With home ownership increasingly out of reach for younger adults, the Bank of Mum and Dad is often sought to bridge the gap. How you do so will impact your own situation.</p> <p>Giving more than you can afford can leave you overstretched. Missed loan repayments could see you fall behind on your own bills. Not putting agreements in writing can lead to disputes down the track. Having a loan guarantee called in could see you homeless.</p> <p>Be wise about decisions you make here and don’t let heartstrings cloud your judgement.</p> <ol start="6"> <li><strong>Suffering in silence</strong></li> </ol> <p>Elder abuse is a sad but significant problem. Given they have money in the bank, self-funded retirees are often the most vulnerable.</p> <p>Its effects can be far-reaching, impacting your mental and physical health, financial wellbeing, social interactions, and quality of life.</p> <p>Be aware of <a href="https://www.oversixty.com.au/finance/retirement-income/are-you-a-victim-of-elder-abuse-without-even-realising-it">the signs that something isn’t right</a>. If you recognise it happening to you – or someone you know – speak up and seek help. </p> <ol start="7"> <li><strong>Forgoing professional advice</strong></li> </ol> <p>How much of the above details did you already know? Chances are, not all of them. And that’s just the tip of the iceberg.</p> <p>Money is a complicated business and you simply don’t know what you don’t know, which is why seeking independent, tailored advice from a professional is so important. </p> <p>A good financial advisor can help you identify new opportunities and manage risks you may not have considered, limit expenses and also work with your accountant to minimise your tax.</p> <p><strong><em>Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a></em></strong></p> <p><strong><em> Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.</em></strong></p> <p><strong><em>Image credits: Shutterstock </em></strong></p>

Retirement Income

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Retirement doesn’t just raise financial concerns – it can also mean feeling unmoored and irrelevant

<p><em><a href="https://theconversation.com/profiles/marianne-janack-681018">Marianne Janack</a>, <a href="https://theconversation.com/institutions/hamilton-college-2966">Hamilton College</a></em></p> <p>Most discussions of retirement focus on the financial aspects of leaving the workforce: “<a href="https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/top-10-ways-to-prepare-for-retirement.pdf">How to save enough for retirement</a>” or “<a href="https://www.businessinsider.com/personal-finance/investing/when-can-i-retire">How do you know if you have enough money for retirement</a>?”</p> <p>But this might not be the biggest problem that potential retirees face. The deeper issues of meaning, relevance and identity that retirement can bring to the fore are more significant to some workers.</p> <p>Work has <a href="https://www.theatlantic.com/ideas/archive/2023/03/work-revolution-ai-wfh-new-book/673572/">become central to the modern American identity</a>, as <a href="https://www.theatlantic.com/atlantic-editions/">journalist Derek Thompson bemoans</a> in The Atlantic. And some theorists have argued that work shapes what we are. For most people, as business ethicist <a href="https://www.luc.edu/quinlan/faculty/algini.shtml#:%7E:text=About,the%20Society%20for%20Business%20Ethics.">Al Gini</a> argues, one’s work – which is usually also one’s job – <a href="https://doi.org/10.4324/9780203950555">means more than a paycheck</a>. Work can structure our friendships, our understandings of ourselves and others, our ideas about free time, our forms of entertainment – indeed our lives.</p> <p>I <a href="https://www.hamilton.edu/academics/our-faculty/directory/faculty-detail/marianne-janack">teach a philosophy course about the self</a>, and I find that most of my students think of the problems of identity without thinking about how a job will make them into a particular kind of person. They think mostly about the prestige and pay that come with certain jobs, or about where jobs are located. But when we get to <a href="https://plato.stanford.edu/entries/existentialism/">existentialist philosophers</a> such as <a href="https://plato.stanford.edu/entries/sartre/">Jean-Paul Sartre</a> and <a href="https://plato.stanford.edu/entries/beauvoir/">Simone de Beauvoir</a>, I often urge them to think about what it means to say, as the existentialists do, <a href="https://philosophynow.org/issues/115/On_Being_An_Existentialist">that “you are what you do</a>.”</p> <p>How you spend 40 years of your life, I tell them, for at least 40 hours each week – the time many people spend at their jobs – is not just a financial decision. And I have come to see that retirement isn’t just a financial decision, either, as I consider that next phase of my life.</p> <h2>Usefulness, tools and freedom</h2> <p>For Greek and Roman philosophers, <a href="https://search.worldcat.org/title/Work-what-it-has-meant-to-men-through-the-ages/oclc/780872063">leisure was more noble than work</a>. The life of the craftsperson, artisan – or even that of the university professor or the lawyer – was to be avoided if wealth made that possible.</p> <p>The good life was a life not driven by the necessity of producing goods or making money. Work, Aristotle thought, was an obstacle to the achievement of the particular forms of excellence characteristic of human life, like thought, contemplation and study – <a href="https://classics.mit.edu/Aristotle/nicomachaen.7.vii.html">activities that express</a> the <a href="https://classics.mit.edu/Aristotle/nicomachaen.8.viii.html">particular character of human beings</a> and are done for their own sake.</p> <p>And so, one might surmise, retirement would be something that would allow people the kind of leisure that is essential to human excellence. But contemporary retirement does not seem to encourage leisure devoted to developing human excellence, partly because it follows a long period of making oneself into an object – something that is not free.</p> <p>German philosopher Immanuel Kant distinguished between the value of objects and of subjects by the idea of “use.” Objects are not free: They are meant to be used, like tools – their value is tied to their usefulness. But rational beings like humans, who are subjects, are more than their use value – <a href="https://search.worldcat.org/title/5796114">they are valuable in their own right</a>, unlike tools.</p> <p>And yet, much of contemporary work culture encourages workers to think of themselves and their value <a href="https://www.simonandschuster.com/books/Bullshit-Jobs/David-Graeber/9781501143335">in terms of their use value</a>, a change that would have made both Kant and the ancient Greek and Roman philosophers wonder why people didn’t retire as soon as they could.</p> <h2>‘What we do is what we are’</h2> <p>But as one of my colleagues said when I asked him about retirement: “If I’m not a college professor, then what am I?” Another friend, who retired at 59, told me that she does not like to describe herself as retired, even though she is. “Retired implies useless,” she said.</p> <p>So retiring is not just giving up a way of making money; it is a deeply existential issue, one that challenges one’s idea of oneself, one’s place in the world, and one’s usefulness.</p> <p>One might want to say, with Kant and the ancients, that those of us who have tangled up our identities with our jobs have made ourselves into tools, and we should throw off our shackles by retiring as soon as possible. And perhaps from the outside perspective, that’s true.</p> <p>But from the participant perspective, it’s harder to resist the ways in which what we have done has made us what we are. Rather than worry about our finances, we should worry, as we think about retirement, more about what the good life for creatures like us – those who are now free from our jobs – should be.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/233963/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><em><a href="https://theconversation.com/profiles/marianne-janack-681018">Marianne Janack</a>, John Stewart Kennedy Professor of Philosophy, <a href="https://theconversation.com/institutions/hamilton-college-2966">Hamilton College</a></em></p> <p><em>Image </em><em>credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/retirement-doesnt-just-raise-financial-concerns-it-can-also-mean-feeling-unmoored-and-irrelevant-233963">original article</a>.</em></p>

Retirement Income

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Is Paris 2024 really achieving its goals for gender equality?

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/rachael-jefferson-297850">Rachael Jefferson</a>, <a href="https://theconversation.com/institutions/charles-sturt-university-849">Charles Sturt University</a></em></p> <p>The <a href="https://olympics.com/en/paris-2024">Paris Olympics</a> has proudly proclaimed to be the first games in 128 years to offer gender equality.</p> <p>This has been achieved by the <a href="https://olympics.com/ioc/news/genderequalolympics-paris-2024-making-history-on-the-field-of-play">International Olympic Committee (IOC)</a> providing an equal number of quota places for female and male athletes, while also increasing the number of women in coaching, broadcasting and sport governance roles.</p> <p>However, gender equality in sport is not just about the numbers – it involves dismantling systemic patriarchy piece by piece.</p> <figure><iframe src="https://www.youtube.com/embed/uaCIpFiN6us?wmode=transparent&amp;start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption><span class="caption">The Paris games will feature the highest proportion of women in the history of the Olympics.</span></figcaption></figure> <h2>Female athlete participation</h2> <p>The ratio of female-to-male athlete parity is significant in the Paris Olympics, given <a href="https://www.theguardian.com/commentisfree/2021/jul/28/the-guardian-view-on-women-and-the-olympics-the-athletes-caught-up-now-the-ioc-must">women were banned from the first games in 1896</a> and only permitted to compete in small numbers in “female-appropriate” events four years later.</p> <p>There was a steady increase in female participation as the games became more popular through the 20th century. However, it was not until 1979 that the right of women to participate in sport was formally included in the first international convention (United Nations) on <a href="https://www.ohchr.org/Documents/ProfessionalInterest/cedaw.pdf">the elimination of all forms of discrimination</a> against women.</p> <p>It took another 33 years for women to be allowed to <a href="https://library.olympics.com/default/zoom-femme-et-sport.aspx?_lg=en-GB">compete in all events</a> on the Olympic program in 2012.</p> <p>At the Paris Olympics, <a href="https://www.statista.com/statistics/1090616/olympics-share-athletes-by-gender-since-1896/">50% of competing athletes are women</a>, and the Australian team has its <a href="https://www.health.gov.au/ministers/the-hon-anika-wells-mp/media/australia-supports-unesco-push-for-gender-equality-in-sport?language=en">highest ever proportion of women (55%)</a>.</p> <h2>Women’s visibility</h2> <p>The IOC has been working hard at shaking off its patriarchal reputation for the past three decades or so.</p> <p>Two major milestones were the establishment of the <a href="https://olympics.com/ioc/gender-equality/gender-equality-through-time">Women and Sport Working Group</a> in 1995, and the <a href="https://www.europarl.europa.eu/RegData/etudes/BRIE/2019/635560/EPRS_BRI(2019)635560_EN.pdf">amending of the Olympic Charter</a> a year later to include advancing women in sport as an Olympic principle.</p> <p>Despite this progress, women’s Olympic events have often been <a href="https://revista-apunts.com/en/media-representation-of-women-athletes-at-the-olympic-games-a-systematic-review/">sidelined by the media</a>, enabling male athletes to enjoy greater publicity (and associated sponsorship) than their female counterparts.</p> <p>The long-established scheduling of events <a href="https://www.jou.ufl.edu/insights/gender-based-sports-coverage-a-quarter-century-of-prime-time-summer-olympics/">offers male athletes peak viewing times</a> across the globe, thereby consigning many women to the margins.</p> <p>In Paris, this <a href="https://olympics.com/ioc/news/genderequalolympics-paris-2024-making-history-on-the-field-of-play">gender discrimination</a> has been disrupted to better the balance.</p> <p>Combat and strength sports are now based on weight categories, permitting the women’s and men’s events to alternate instead of having men’s events available in the popular evening slot.</p> <p>The women’s marathon – only introduced to the Olympics in 1984 – will <a href="https://worldathletics.org/news/news/key-information-athletics-paris-2024-olympic-games">also conclude the athletics program</a> instead of the men’s for the first time.</p> <h2>Media representation</h2> <p>Amplifying women’s voices and stories from the games has been a key objective for the Paris Olympics.</p> <p>The IOC has been instrumental in this endeavour via its <a href="https://olympics.com/ioc/gender-equality/portrayal-guidelines">2024 Portrayal Guidelines:</a> gender-equal, fair and inclusive representation in sport.</p> <p>These guidelines have led to a large increase in the number of female staff in broadcast roles and production teams in Paris.</p> <p>And <a href="https://olympics.com/ioc/news/olympic-broadcasting-more-women-in-key-broadcast-roles-at-paris-2024">female-targeted training camps</a> in 2023 provided by the Olympic Broadcasting Services (OBS) have been a timely institutional transformation.</p> <p>Improved media representation of female athletes is also a priority, focusing on how they are visually captured and presented in all forms of media and communication.</p> <p>This helps to reframe persistent patriarchal narratives about how sportswomen must <a href="https://theconversation.com/uniform-discontent-how-women-athletes-are-taking-control-of-their-sporting-outfits-164946">maintain their femininity</a> to be worthy recipients of the <a href="https://vc.bridgew.edu/cgi/viewcontent.cgi?article=1269&amp;context=grad_rev">male gaze</a>.</p> <p>Regrettably, this is still a work in progress for some commentators such as <a href="https://www.skynews.com.au/business/media/you-know-what-women-are-like-eurosport-commentator-bob-ballard-sacked-for-sexist-remark-after-australias-freestyle-relay-win/news-story/739bc7a0efaf9d7007250ab0c4313f15">Bob Bollard, whose recent sexist “makeup” remark</a> went viral when he was reporting on the gold medal win for the Australian women’s 4x100m freestyle relay team.</p> <p>After the Bollard incident, Yiannis Exarchos, the <a href="https://www.scmp.com/yp/discover/news/sports/article/3272286/paris-olympics-camera-operators-told-avoid-filming-women-sexist-way">OBS chief, swiftly reminded</a> mostly male camera operators to refrain from any sexist filming of female athletes. He said the problem was mainly down to “unconscious bias”, with camera operators and TV editors tending to show more close-up shots of women than men.</p> <h2>Leadership and infrastructure</h2> <p>Female under-representation in the IOC is well documented.</p> <p>There were <a href="https://www.europarl.europa.eu/RegData/etudes/BRIE/2019/635560/EPRS_BRI(2019)635560_EN.pdf">no women in the IOC from 1896 to 1981</a> before Flor Isava Fonseca (Venezuela) and Pirjo Häggman (Finland) were co-opted as the <a href="https://stillmed.olympics.com/media/Documents/Olympic-Movement/Factsheets/Women-in-the-Olympic-Movement.pdf">first two female IOC members in 1981</a>.</p> <p>In the IOC’s most recent election in July, the number of <a href="https://olympics.com/ioc/news/ioc-session-in-paris-elects-two-new-vice-presidents-and-eight-ioc-members">female members rose to 42.3%</a> – more than a 100% increase in the past decade.</p> <p>Following a long overdue <a href="https://unwomen.org.au/paris-2024-olympics-a-new-era-for-women-in-sport/">IOC rule change in 2020</a>, the traditional male flag bearer in the Olympics Opening Ceremony was accompanied by a female.</p> <p>Gender issues arise with elite sport coaches too – <a href="https://olympics.com/ioc/female-coaches">only 13% of coaches</a> at the 2020 Tokyo Olympics were women.</p> <p>In Paris, it is estimated <a href="https://www.telegraph.co.uk/olympics/2024/07/27/female-coaches-misogyny-olympics-paris-2024-equality-wish/#:%7E:text=At%20the%20Tokyo%20Olympics%20in,10%20coaches%20will%20be%20female.">one in ten coaches are female</a>.</p> <p>Outrage about <a href="https://abcnews.go.com/GMA/Culture/nikes-olympic-track-womens-uniforms-criticized-athletes-sexism/story?id=109267006">sexist Nike uniforms</a> and the <a href="https://theconversation.com/the-olympics-and-fifa-are-trying-to-better-support-mum-aletes-what-are-australian-sports-doing-233218">lack of facilities for “mum-aletes”</a> until the 2024 games both highlight the incessant institutional hurdles elite sportswomen encounter.</p> <h2>A new era for female athletes</h2> <p>The Paris games are a springboard for much needed systemic change in the minutiae of Olympic policies and practices.</p> <p>Female athletes are no longer victims of vast patriarchal conspiracies to lock them out of this male-dominated arena. They’ve gained ground and are kicking sexism to the touchline with relish.</p> <p>We all need to welcome in this new era.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/235665/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/rachael-jefferson-297850"><em>Rachael Jefferson</em></a><em>, Lecturer in Human Movement Studies (Health and PE) and Creative Arts, <a href="https://theconversation.com/institutions/charles-sturt-university-849">Charles Sturt University</a></em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/is-paris-2024-really-achieving-its-goals-for-gender-equality-235665">original article</a>.</em></p> </div>

Caring

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Your parents’ income doesn’t determine yours – unless you’re ultra rich or extremely poor

<div class="theconversation-article-body"><em><a href="https://theconversation.com/profiles/catherine-de-fontenay-5631">Catherine de Fontenay</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p>Australia is among the strongest global performers in terms of income mobility between the generations, according to a new <a href="https://www.pc.gov.au/research/completed/fairly-equal-mobility">Productivity Commission report</a>.</p> <p>The country’s long-term economic growth has led to each generation earning more than the last, on average.</p> <p>Our report finds 67% of the so-called <a href="https://www.businessinsider.com/xennials-born-between-millennials-and-gen-x-2017-11">“Xennial”</a> generation – those born in 1976–1982, on the cusp of the Millennial/Gen X divide – earn more than their parents did at a similar age.</p> <p>This is particularly true of those born into poorer families.</p> <hr /> <p><iframe id="NsmB3" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/NsmB3/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>When we look at where people rank in an income distribution, the picture is a little less rosy. While children with parents at the bottom or top of the income scale are more likely to remain there, almost 15% of people with parents in the lowest income decile, remain there while just 6% move to the top.</p> <p>And those living in poverty - who often include renters, people from migrant backgrounds who don’t speak English at home and single parents - face some of the biggest barriers to improving their economic lot.</p> <p><a href="https://www.pc.gov.au/research/completed/fairly-equal-mobility">Fairly Equal? Economic mobility in Australia</a>, released on Thursday, measures intergenerational income mobility by examining the relationship between a person’s income and the eventual income of their children.</p> <h2>Measuring inequality</h2> <p>Most countries anxiously monitor income distribution and economic mobility amid concerns inequality may be increasing.</p> <p>And countries with high inequality tend to have low mobility: the rungs of the social ladder are far apart making it difficult to move up to the next level.</p> <p>If mobility is low, the consequences are serious. Low mobility is discouraging, unproductive and unstable. If young people have little chance of achieving their aspirations, their wellbeing is affected.</p> <p><a href="https://ideas.repec.org/p/cor/louvco/2023026.html">Social unrest is more likely</a>. And the abilities of young people from less affluent backgrounds are under-used. The next tech entrepreneur Steve Jobs may never be discovered, and many other opportunities are lost.</p> <p>In Australia we are used to thinking of ourselves as having inequality and mobility somewhere between Scandinavia and the US; but that comparison is not as comforting as it used to be, if inequality and mobility are worsening in the US.</p> <p>Our report considers people’s income mobility over the course of their lives, and across generations. If income mobility is low, people will struggle to recover from initial disadvantage, and those born into privilege will be financially secure.</p> <p>First we look at whether people move in the income distribution; there is a surprising amount of movement. And we look for evidence people can access opportunities throughout life, after setbacks.</p> <h2>Recovering from setbacks</h2> <p>There is not much evidence of recovery after a person experiences a severe illness or a job loss, perhaps because the causal factors are still at work.</p> <p>More encouragingly, the income of women who experience separation <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0020/4815110/HILDA-User-Manual-Release-22.0.pdf">does increase</a>, eventually restoring the buying power of their household. This is in part due to well-targeted government support.</p> <p>For intergenerational mobility, we extended the dataset developed by <a href="https://www.aeaweb.org/articles?id=10.1257/jel.20211413">an analytical dataset</a> to measure the influence parents’ income had on the income their offspring were likely to earn.</p> <p>We found Australia’s intergenerational mobility is actually higher than the <a href="https://onlinelibrary.wiley.com/doi/10.1111/sjoe.12197">Scandinavian</a> countries, and second only to <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3662560">Switzerland</a> among comparable studies.</p> <hr /> <p><iframe id="5DFB9" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/5DFB9/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>In all countries studied there was some link between parents’ income mobility and that of children, because parents pass on tastes, ambitions and abilities.</p> <p>And there was greater correlation between the incomes of mothers and daughters, and fathers and sons than with parents of the opposite gender, perhaps because of role model effects.</p> <hr /> <p><iframe id="BJ4hD" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/BJ4hD/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>While Australia’s strong income mobility between generations is remarkable, it’s concerning there is less mobility among those at the very bottom and top of the income distribution scale.</p> <p>The fact children born into the poorest families were more likely to remain in the lowest deciles, while those born into the top earning families tended to remain in the top deciles, suggests privilege is often passed on.</p> <p>People who grew up in frequently poor households were <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/3537441/HILDA-Statistical-report-2020.pdf">three time more likely</a> to be poor at age 26 to 32 than those who never experienced poverty.</p> <hr /> <p><iframe id="SxHBo" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/SxHBo/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe></p> <hr /> <p>And consistent with <a href="https://www.aihw.gov.au/getmedia/37c2c8b7-328c-41e1-bace-87ed7a551777/australias-welfare-chapter-2-summary-18sept2019.pdf.aspx">other studies</a> we found children whose family received government payments were twice as likely to receive support as adults, compared with those whose families received no help.</p> <h2>Movement in the middle</h2> <p>Taken together, these results suggest some segmentation of opportunities. In the middle of the income distribution, there are opportunities to get ahead, and individuals’ careers are not restricted by their families’ circumstances.</p> <p>At the bottom, things are a lot more “sticky”, and finding opportunities to permanently escape poverty is more difficult. Some of this boils down where people live, peers, school quality and local job options.</p> <p>Researchers <a href="https://www.aeaweb.org/articles?id=10.1257/jel.20211413">Deutscher and Mazumder</a> (2023) have shown regional economic conditions have a big impact on mobility, and we show remoteness limits movement out of poverty.</p> <p>Overall, the mobility picture is extremely good news for most Australians.</p> <p>But this should not blind us how difficult it is to move out of poverty, especially for those in remote areas. Identifying where mobility fails to deliver allows us to focus our policy response.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/234158/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/catherine-de-fontenay-5631">Catherine de Fontenay</a>, Honorary Fellow, Department of Economics, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/your-parents-income-doesnt-determine-yours-unless-youre-ultra-rich-or-extremely-poor-234158">original article</a>.</em></p> </div>

Money & Banking

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How do I plan for my retirement? Step one – start right away

<p><em><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a></em></p> <p>Planning for retirement is important because it will help you build the nest egg you’ll need to financially sustain your retirement years.</p> <p>Past <a href="https://www.tandfonline.com/doi/epdf/10.1080/03601277.2012.660859?needAccess=true">studies</a> have shown that those who plan for their retirement are more likely to be better off at retirement compared to those don’t.</p> <p>The sooner the planning process gets underway, the better. This gives your money more time to grow by generating investment returns. And the income from your first job is your first opportunity to save for retirement. As the saying goes: “The best time to plant a tree was 20 years ago. The second best time is now.”</p> <p>As people <a href="https://www.statssa.gov.za/?p=15601">can expect to live longer</a>, they must save more for retirement so that they don’t outlive their savings. This is particularly true given that the pensions landscape worldwide has undergone some major changes.</p> <p>In the past, governments and employers provided retirement income for individuals through government social security benefits and employment-based retirement funds. Because of increasing life expectancies, pension plans that guaranteed a retirement benefit to employees are now rare. Employees are now responsible for making contributions towards their own pensions as well as choosing the investments offered by the pension fund.</p> <p>Since employers are no longer responsible for funding their employees’ retirement and governments lack resources to provide a universal state pension, each person is ultimately responsible for ensuring they have enough retirement savings. So it’s very important to know the basics of the retirement planning process.</p> <p>As a researcher, I’m interested in how people use financial products to overcome economic challenges and build wealth. One of the things I investigate is whether planning for retirement leads to better retirement outcomes. For instance, my <a href="https://www.researchgate.net/profile/Bomikazi-Zeka-2/publication/340130176_Retirement_funding_adequacy_in_black_South_African_townships/links/5e8bf3924585150839c6408b/Retirement-funding-adequacy-in-black-South-African-townships.pdf?_sg%5B0%5D=started_experiment_milestone&amp;origin=journalDetail&amp;_rtd=e30%3D">research</a> has found that individuals whose financial affairs are in order are more likely to maintain their standard of living at retirement.</p> <p>Given that everyone’s financial situation is unique, it’s always a good idea to speak to a financial planner for tailored financial advice.</p> <p>If you haven’t given retirement planning much thought or don’t know where to start, here are four points to help get the ball rolling.</p> <h2>What are my retirement goals?</h2> <p>Retirement goals make you think about what you want to achieve by the time you retire and what you need to do to achieve it. Some people may have a goal in mind about when they want to retire, or how much wealth they’d like to have by the time they retire. And since wealth has different meanings for different people, others may think about maintaining or improving their standard of living at retirement.</p> <p>Once you’ve thought about your retirement goals, the <a href="https://corporatefinanceinstitute.com/resources/management/smart-goal/">“smart” goals</a> framework is a useful guide. It outlines that goals should be: specific, measurable, attainable, relevant and time-bound.</p> <p>When goals are clear, within reach, achievable, realistic and time-sensitive, they become a blueprint to help you turn them into a reality.</p> <h2>How do I start saving for retirement?</h2> <p>For those who have a job that comes with retirement fund membership, a workplace pension is used to provide for retirement. But there are also other options available to help you save.</p> <p>For instance, retirement annuity funds are voluntary retirement savings. Personal assets such as <a href="https://www.allangray.co.za/what-we-offer/unit-trust-investment/#fund-3">unit trusts</a> or <a href="https://www.gov.za/faq/money-matters/how-can-i-make-tax-free-investment">tax-free investments</a> can also be used as a savings tool. Unit trusts are generally better suited for people willing to take on risk because their value is tied to the movements of financial markets. In other words, they can generate positive returns but they can also lose value. The drawback of tax-free investments in South Africa is that they have a lifetime contribution limit. You can’t use them to save more than R500,000 (US$27,400).</p> <p>Each of these options has its advantages and disadvantages and what works best for one person may not be best for another. But there are several ways to save for retirement depending on your financial situation and retirement goals. Getting professional advice will help you determine what’s best for you.</p> <h2>Will my retirement savings be enough?</h2> <p>Once you’ve set your retirement goals and have a retirement savings plan in place, you can calculate whether you are saving enough to achieve your retirement goals.</p> <p>For example, if your retirement goal is: “I want to retire at the age of 65 years with an income equivalent to R35,000 (US$1,900) per month” then you can use a <a href="https://www.sanlam.co.za/tools/Pages/retirement.aspx">retirement calculator</a> to track your progress and determine whether you need to make adjustments to meet your goals.</p> <p>You might have to increase the monthly amount you’re putting away for retirement or reconsider your retirement age. The retirement calculators are also a useful tool for regular check-ins on your progress should your financial situation change – for example, if you change employers and earn a different salary.</p> <h2>What other issues should I consider?</h2> <p>It’s also important to think about your lifestyle and priorities.</p> <p>For instance:</p> <ul> <li> <p>do you aim to retire with your mortgage settled?</p> </li> <li> <p>are there debts you plan to clear before you retire or children who need financial support at retirement?</p> </li> <li> <p>would you like to renovate your home?</p> </li> <li> <p>would you like to buy a new car when you reach retirement age?</p> </li> </ul> <p>Another important consideration is healthcare costs. Many people assume that they will be able to work indefinitely and overlook the fact that healthcare costs may increase with age.</p> <h2>Starting early matters</h2> <p>Many people plan to work after retirement age, while others don’t plan to retire at all. It may be that they can’t afford to. They may have accessed their retirement benefits too soon, made inconsistent retirement fund contributions, or had to pay high administrative costs that eroded the final value of a retirement payout.</p> <p>So best be prepared. Retirement may seem like a distant event to plan and save for, especially when there are more pressing financial needs. It’s important to think about the financial decisions you make now that may cost you in the future. If you start to plan for your retirement now, your future self will thank you for it.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/230553/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><em><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a></em></p> <p><em>Image credits: Shutterstock </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/how-do-i-plan-for-my-retirement-step-one-start-right-away-230553">original article</a>.</em></p>

Retirement Income

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Don’t give mum chocolates for Mother’s Day. Take on more housework, share the mental load and advocate for equality instead

<p><em><a href="https://theconversation.com/profiles/leah-ruppanner-106371">Leah Ruppanner</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p>With Mother’s Day right around the corner, many grateful and loving families are thinking about what to give mum to show their appreciation.</p> <p>Should you give her chocolate? Nope. Fancy soaps? Nope. Fuzzy slippers, pyjamas, scented candles? No, no and no.</p> <p>On this Mother’s Day, keep your cash and give your wonderful mother gifts that will actually have a long-term impact on her health and well-being.</p> <h2>1. Do a chore that mum hates and hold onto it … forever</h2> <p>Research <a href="https://www.tandfonline.com/doi/full/10.1080/13545701.2020.1831039">shows</a> men have increased the amount of time spent on housework and childcare and that mothers, over time, are doing less (hooray!).</p> <p>But, women <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1741-3737.2008.00479.x">still do more housework</a> than men, especially when <a href="https://onlinelibrary.wiley.com/doi/full/10.1111/gwao.12497?fbclid=IwAR2dp04p2sFqbDqdehXmXgDSfTYwX3GRzP7ScMJhSOrMePTGQVErR2TTX88">kids are in the home</a>.</p> <p>Further, <a href="https://journals.sagepub.com/doi/abs/10.1177/0891243205285212">men tend to pick up the more desirable tasks</a>, like <a href="https://www.jstor.org/stable/3598304">cooking and playing with the kids</a>, leaving mothers to do the less pleasurable chores (think cleaning toilets and clearing out fridges).</p> <p>The chore divide in same-sex relationships is generally found to be more equal, but some critique suggests equality may suffer <a href="https://www.nytimes.com/2018/05/16/upshot/same-sex-couples-divide-chores-much-more-evenly-until-they-become-parents.html">once kids are involved</a>.</p> <p>This year give your mum (or mums) the gift of equal housework and childcare sharing – start by taking the most-hated tasks and then hold onto them… forever.</p> <p><a href="https://onlinelibrary.wiley.com/doi/full/10.1111/gwao.12727">Research</a> shows housework inequality is bad for women’s mental health. Undervaluing women’s housework and unequal sharing of the chores deteriorates <a href="https://link.springer.com/article/10.1007/s11199-022-01282-5">relationship quality</a>, and <a href="https://journals.sagepub.com/doi/full/10.1177/0038038516674664">leads to divorce</a>.</p> <p>Housework and childcare take up valuable time to keep the family happy, harmonious and thriving, often at the expense of mum’s health and well-being.</p> <p>So, skip the chocolates and show mum love by doing the worst, most drudgerous and constant household chores (hello, cleaning mouldy showers!) and keep doing these… forever.</p> <h2>2. Initiate a mental unload</h2> <p>The <a href="https://www.abc.net.au/news/health/2017-09-14/the-mental-load-and-what-to-do-about-it/8942032">mental load</a> is all of the planning, organising and management work necessary to keep the family running.</p> <p>The mental load is often perceived as list making or allocating tasks to family members.</p> <p>But, it’s so much more – it is the <a href="https://theconversation.com/planning-stress-and-worry-put-the-mental-load-on-mothers-will-2022-be-the-year-they-share-the-burden-172599">emotional work</a> that goes with this thinking work.</p> <p>The mental load is the worry work that never ends and can be done <a href="https://www.tandfonline.com/doi/abs/10.1080/13668803.2021.2002813">anywhere, anytime and with anyone</a> (in, for example, said mouldy shower).</p> <p>Because the mental load is performed inside our heads, it is invisible. That means we don’t know when we or others are performing this labour unless we really tune in.</p> <p>In fact, it is often when we tune in through quiet time, relaxation or meditation that the mental load rears its ugly head. Suddenly you remind yourself to buy oranges for the weekend soccer game, organise a family movie night and don’t forget to check in on nanna.</p> <p>Women in heterosexual relationships are <a href="https://journals.sagepub.com/doi/abs/10.1177/0003122419859007">shown to do more</a> of the mental load with serious consequences for their mental health. But we don’t have a comprehensive measurement of how much women do it nor how it is allocated in same-sex couples.</p> <p>So, on this mothers’ day spend some time talking about, cataloguing, and equalising the family’s mental load.</p> <p>This isn’t just making a list about what has to be done but also understanding <a href="https://www.abc.net.au/news/health/2017-09-14/the-mental-load-and-what-to-do-about-it/8942032">how the mental load</a> connects to the emotional health of the family, and the person carrying this <a href="https://www.newamerica.org/better-life-lab/blog/making-the-mental-load-visible/">invisible labour, worry and stress</a>.</p> <h2>3. Speak up for your mum and all caregivers</h2> <p>Families alone cannot bear the brunt of the caregiving necessary to keep us thriving.</p> <p>Governments, workplaces and local communities also play a critical role. For this mothers’ day, pick an issue impacting mothers (for example, equal pay, affordable childcare or paid family leave) and do one thing to help move the needle.</p> <p>Write a letter to your boss, your local MP, or donate money to an advocacy organisation advancing gender equality.</p> <p>Or, role model these behaviours yourself – normalise caregiving as a critical piece of being an effective worker, create policies and practices that support junior staff to care for themselves, their families and their communities and use these policies.</p> <p><a href="https://journals.sagepub.com/doi/abs/10.1177/0891243216649946">Research</a> shows men want to be equal carers and sharers but often fear what taking time off for caregiving will signal to their employer despite evidence that fathers who request flexible work are perceived more <a href="https://academic.oup.com/sf/article-abstract/94/4/1567/2461609?login=false">favourably</a>.</p> <p>Appearing to be singularly devoted to work was shown to be impossible during the pandemic with kids, spouses, partners, and pets home all day long.</p> <p>Learning to create more care-inclusive workplaces and communities is critical.</p> <p>Paid parental leave, affordable and accessible high-quality childcare, flexibility in how, when and where we work and greater investments in paid sick leave, long-term disability support and aged care are just a few policies that would strengthen the care safety net.</p> <p>We will all be called upon to care at some point in our lives – let’s create the environments that support caregiving for all, not just mum.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/182330/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><em><a href="https://theconversation.com/profiles/leah-ruppanner-106371">Leah Ruppanner</a>, Professor of Sociology and Founding Director of The Future of Work Lab, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a></em></p> <p><em>Image credits: Getty Images </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/dont-give-mum-chocolates-for-mothers-day-take-on-more-housework-share-the-mental-load-and-advocate-for-equality-instead-182330">original article</a>.</em></p>

Family & Pets

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Monty Python star's candid financial admission

<p>Monty Python star Eric Idle has made a candid admission about the state of his finances, revealing why he still has to work at the age of 80. </p> <p>The comic legend admitted he receives only a fraction of the millions the Python team have made in the past because the finances are a “disaster”.</p> <p>In messages on X, formerly Twitter, Idle wrote: “I don’t know why people always assume we’re loaded”.</p> <p>“I have to work for my living. I never dreamed that at this age the income streams would tail off so disastrously."</p> <p>“I have been working and earning for Pythons since 1995. And now no more.”</p> <p>Idle also took aim at TV lawyer Holly Gilliam, the daughter of fellow Python member Terry Gilliam, who took over the Python brand in 2013 as part of HDG Projects Ltd. </p> <p>He said, “I guess if you put a Gilliam child in as your manager you should not be so surprised”.</p> <p>“One Gilliam is bad enough. Two can take out any company.”</p> <p>Daughter Lily Idle backed him, writing online, “I’m so proud of my dad for finally finally finally starting to share the truth.”</p> <p>The Pythons, who also included John Cleese, 84, Michael Palin, 80, and the late Terry Jones — made a fortune thanks to their iconic cult films, including <em>Life of Brian</em>, hit stage show <em>Spamalot</em>, which Idle co-wrote, and the original <em>Flying Circus</em> BBC TV series.</p> <p>They were back in the limelight in 2014 with <em>Monty Python Live (Mostly) — One Down, Five to Go</em>: a reference to former member Graham Chapman who died in 1989 aged just 48.</p> <p>It featured interpretations of some of their famous sketches, and reportedly earned the surviving members at least £2 million ($3.87m AUD) each.</p> <p><em>Image credits: Getty Images </em></p>

Retirement Income

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Downsizing cost trap awaits retirees – five reasons to be wary

<p><em><a href="https://theconversation.com/profiles/erika-altmann-361218">Erika Altmann</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a></em></p> <p>It’s time to debunk the myth of zero housing costs in retirement if we want to understand why retirees resist downsizing. Retirees have at least five reasons to be wary of the costs of downsizing.</p> <p>Retirees living in middle-ring suburbs face frequent calls to downsize into apartments to free up larger allotments in these suburbs for redevelopment. Retirees who fail to downsize into smaller units and apartments are viewed as being a greedy, baby-boomer elite, stealing financial security from younger generations.</p> <p>It also makes sense to policymakers for retirees to move into less spacious accommodation and make way for high-density housing. Housing think-tank AHURI <a href="http://www.ahuri.edu.au/__data/assets/pdf_file/0021/14079/AHURI_Final_Report_No_286_Australian-demographic-trends-and-implications-for-housing-assistance-programs.pdf">fosters this view</a>. Yet seniors remain resistant to moving, in part because of the ongoing costs they would face.</p> <p>The concept of zero housing costs in retirement is based on a 1940s view of a well-maintained, single dwelling on a single allotment of land where the mortgage has been paid off. This concept is incompatible with medium- and high-density housing and refusing to acknowledge ongoing housing costs may cause significant poverty for retirees.</p> <h2>Reason 1 – upfront moving costs are high</h2> <p>When a house is sold the owner receives the sale funds minus the real estate and legal fees. When the same person then buys a different property to live in, they pay legal fees plus stamp duty.</p> <p>For cities such as Melbourne and Sydney, these costs are likely to exceed A$70,000.</p> <p>These high transfer costs may mean it is not cost-effective <a href="https://theconversation.com/why-older-australians-dont-downsize-and-the-limits-to-what-the-government-can-do-about-it-76931">for the person to move</a>.</p> <h2>Reason 2 – levies are high</h2> <p>Because apartment owners pay body corporate levies, people often assume this is just the same as periodic payment of rates, water, insurance and other costs. It is not.</p> <p>Fees remissions for low-income retirees for rates, power, insurance and water are difficult to apply within a body corporate environment. As a consequence, these are usually not applied to owners of apartments.</p> <p>The costs of maintaining essential services, such as mandatory fire-alarm testing, yearly engineering certification, lift and air-conditioning inspections, significantly increase ownership costs.</p> <p>When additional services are supplied, such as swimming pools, gyms and rooftop gardens, these also require periodic inspections. Garbage collection, cleaning, gardening, concierge and strata management services also <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&amp;eprintid=23322">must be paid</a>.</p> <p>Owners of standard suburban homes choose whether they want these services, with those on fixed incomes going without them.</p> <p>Annual levies for apartment buildings vary, but expect to pay between $10,000 and $15,000. They <a href="https://www.strata.community/understandingstrata/faqs">may be more than this</a>.</p> <h2>Reason 3 – costs of maintenance</h2> <figure class="align-right "><figcaption></figcaption></figure> <p>Apartments are often sold as a maintenance-free solution for older people. The maintenance is not free. It needs to be paid for.</p> <p>Maintenance costs are higher in an apartment than a standard suburban home because there are more items and services to be maintained and fixed. Lifts and air conditioning need periodic servicing and fixing. This is in addition to the mandatory inspections listed above.</p> <h2>Reason 4 – loss of financial security</h2> <p>It is a mistaken belief that the maintenance costs that form part of the body corporate fee include periodic property upgrades. This relates to items that are owned collectively with other apartment owners.</p> <p>Major servicing at the ten-year mark and usually each five-to-seven years after that include painting, floor-covering replacement, and lift and air-conditioning repair or replacement.</p> <p>Major upgrades may also include garden redesign or other external building enhancement including <a href="https://eprints.utas.edu.au/cgi/users/home?screen=EPrint%3A%3AView&amp;eprintid=23315">environmental upgrades</a>. All owners share these upgrade costs.</p> <p>Costs of upgrading the inside of an apartment (a bathroom disability upgrade, for example) are additional again.</p> <p>Once the body corporate committee members pledge funds towards an upgrade, all owners are required to raise their share of the funds, whether they can afford it or not. Communal choice outweighs an individual owner’s need to delay upgrade costs.</p> <p>Owners who buy apartments that are part of a body corporate effectively lose control of their future financial decisions.</p> <h2>Reason 5 – loss of security of tenure</h2> <p>Loss of security of tenure is usually associated with renters. However, the recent introduction of <a href="http://www.lpi.nsw.gov.au/__data/assets/pdf_file/0009/25965/Termination_of_a_strata_scheme_by_RG.pdf">termination legislation</a> in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell.</p> <p>There are valid reasons why termination legislation is desirable, as many older apartment complexes are reaching the end of their useful life.</p> <p>Even so, as termination legislation is rolled out across the states, owner- occupiers effectively lose control of how long they will own a property for. They no longer have security of tenure, which means retirees may face an uncertain housing future in their old age.</p> <h2>Downsizing raises poverty risks</h2> <p>Because current data sets do not adequately take account of ongoing costs associated with apartment living, the effect of downsizing on individual households is masked.</p> <p>Downsizing retirees into the apartment sector creates ongoing financial stress for older people. Creating <a href="https://theconversation.com/it-will-take-more-than-piecemeal-reforms-to-convince-older-australians-to-downsize-51043">tax incentives to move</a> does not tackle these ongoing costs.</p> <p>Centrelink payments for of <a href="https://www.humanservices.gov.au/customer/services/centrelink/age-pension">$404 per week</a> are well below <a href="http://acoss.wpengine.com/poverty-2/">the poverty line</a>. Yet we expect retirees to willingly downsize and to be able to cede most of their Centrelink payments to cover high body corporate costs.</p> <p>Requiring retirees to downsize for the greater urban good will shift poverty onto retirees who could barely manage in their previously owned standard suburban home.</p> <p>Failing to understand the effect of high ongoing costs associated with apartment living and reinforcing the myth of zero housing costs in retirement will continue to lead to poor policy outcomes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/80895/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><a href="https://theconversation.com/profiles/erika-altmann-361218"><em>Erika Altmann</em></a><em>, Property and Housing Management Researcher, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/downsizing-cost-trap-awaits-retirees-five-reasons-to-be-wary-80895">original article</a>.</em></p>

Retirement Income

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7 hacks for retirees to make your money last longer

<p>As Australians continue to live longer, the squeeze is on to make each dollar last longer – and never moreso than in retirement.</p> <p><a href="https://www.aihw.gov.au/reports/life-expectancy-deaths/deaths-in-australia/contents/life-expectancy">Life expectancies in Australia</a> are now 85.4 years for women and 81.3 years for men. Meanwhile, the <a href="https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release">average age at retirement</a> for all retirees is 56.3 years. That’s up to 29.1 years of retirement to be paid for without a salaried income.</p> <p>Thankfully, making money last longer is just possible, with the help of a few tips and tricks.</p> <ol> <li><strong>Embrace seniors’ discounts</strong></li> </ol> <p>It was once said that “it’s better to pay full price than to admit you’re a senior citizen”. Really? Who wouldn’t prefer the extra cash!</p> <p>Being “senior” opens the door to numerous discounts and freebies.</p> <p>If you haven’t already, apply for your eligible concession cards, including the <a href="https://www.servicesaustralia.gov.au/commonwealth-seniors-health-card">Commonwealth Seniors Health Card</a> (for discounted healthcare and prescriptions) and state or territory seniors card (for discounted/free vehicle registration, public transport and other services).</p> <p>Additionally, many businesses offer seniors discounts – insurers, retailers, attractions and more. But they may not advertise these discounts widely, so it pays to ask.</p> <ol start="2"> <li><strong>Maintain a plan</strong></li> </ol> <p>Having a plan and keeping it up to date ensures you don’t overdraw from super, losing the income-generating power of those funds and running out prematurely.</p> <p>I prefer a ‘savings and investment plan’, which sounds nicer and is more comprehensive than a ‘budget’.</p> <p>Incorporate your goals, expenses, assets, and incomes – visibility keeps you disciplined and allows you to act quickly if something is amiss.</p> <ol start="3"> <li><strong>Spend points</strong></li> </ol> <p>Many retirees have held their current credit card, store cards and frequent flyer account for years – decades even. How many points are sitting there unused? </p> <p>These points generally aren’t transferable, so can’t be gifted in your will. It’s use them or lose them! </p> <p>Points can pay for everything from groceries to homewares, travel and even your Christmas shopping – conserving your cash and super.</p> <ol start="4"> <li><strong>Get comfortable</strong></li> </ol> <p>Rightsizing your home sooner rather than later has numerous benefits, such as:</p> <ul> <li><a href="https://www.ato.gov.au/Individuals/Super/Growing-and-keeping-track-of-your-super/How-to-save-more-in-your-super/Downsizer-super-contributions/">downsizer super contributions tax breaks</a> to boost superannuation earnings.</li> <li>paying less for your new home, since property prices generally track upwards whilst investing the extra equity.</li> <li>avoiding complications of moving later in life when your health or mobility may not be as good.</li> <li>avoiding a mistake - using the time to find exactly what you want, where you want, rather than being under pressure and having to spend stamp duty again</li> </ul> <p>Home ownership is also a major determinant of how comfortable your retirement will be. And given the current state of Australia’s rental market, selling your home to move into rented accommodation could prove costly. </p> <ol start="5"> <li><strong>Retain protections</strong></li> </ol> <p>Protections are typically a cost – insurance premiums, legal fees, memberships etc. However, the cost of not having them in place can be far higher.</p> <p>Plus, in the case of insurances, prices and restrictions increase with age – meaning you pay more but get less value for that spend, compared with the more favourable terms of a long-held policy.</p> <p>By all means adjust your protections to suit your current and future needs. But think twice before trying to save a few dollars by discarding insurances or cancelling sports and social memberships that keep you active.</p> <ol start="6"> <li><strong>Update estate planning</strong></li> </ol> <p>Considerable costs (and heartache) inevitably hit a grieving partner and family where someone dies without having their affairs properly in order:</p> <ul> <li>funeral costs and medical bills pile up if funds haven’t been allocated for them.</li> <li>delayed payouts from insurances and super if those details aren’t readily available. </li> <li>loss of economies of scale (living costs per person are cheaper for couples than singles). </li> <li>unexpected taxes, debts, and liabilities.</li> <li>legal conflicts arise where wills are unclear or outdated.</li> <li>a person’s wishes may go overlooked or be challenged where guardianships and power of attorney were not devised.</li> </ul> <p>In extreme cases, the surviving spouse may be forced to sell their home to pay associated costs or because they can’t afford to maintain it alone. </p> <ol start="7"> <li><strong>Seek good advice</strong></li> </ol> <p>Just like a good doctor helps you stay physically and mentally healthy, a good financial adviser helps your finances stay healthy, tactically smart and use strategies to reduce tax which stretches your money further.</p> <p>Be sure their accreditation is up-to-date, and they have experience working with retirees (not just those planning for it during their working years).</p> <p>Often, the cost of this advice pales in comparison to the tax saved and additional income earned through benefits, structures and plans you never even knew about. What’s not to love about that!</p> <p><strong><em>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a> </em></strong></p> <p><em>Image credits: Getty Images</em></p>

Retirement Income

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Sickness or health: Healthy life split along gender, education lines

<p>Australians are living and working longer than ever, but the number of healthy years they’re enjoying with this added longevity isn’t shared equally between the sexes, or by those who finished school before Year 12.</p> <div class="copy"> <p>A paper recently <a href="https://doi.org/10.1016/S2468-2667(23)00129-9" target="_blank" rel="noreferrer noopener" data-type="URL" data-id="https://doi.org/10.1016/S2468-2667(23)00129-9">published</a> in <em>The Lancet</em> <em>Public Health</em> from the Ageing Futures Institute at the University of New South Wales shows an increase in longevity in Australia. Other data in the publication reveal detail about “healthy years”.</p> <p>Men, and those with higher levels of education, worked about 2 years longer in good health. For women and those with lower education, the years of healthy life expectancy have gone backwards.</p> <p>The report, led by statistician Dr Kim Kiely who is now based at The University of Wollongong, compared representative cohorts of people aged 50-100 who participated in the Household Income and Labour Dynamics in Australia survey (HILDA). Those cohorts were measured over decade long periods – the first from 2001-2010 and the second from 2011-2020.</p> <p>Men added an extra 11 months of healthy life between the cohorts, while women lost a month. Similarly those of any gender who had completed year 12 added about 10 months to their healthy life expectancy, while the same amount of time was lost by those who hadn’t.</p> <p>“Everyone’s increasing their working life expectancy, so the years they’re expected to be working,” Kiely says. “What is different is how long they’re expected to be living in good health: women and people with low education didn’t have an improvement in healthy life expectancy.</p> <p>“Everyone’s also living longer than ever before, but for women, those extra years seem to be years of poor health.  People with lower education – they end up going backwards, they’re losing years of healthy life.”</p> <p>Australia’s working life trends are similar to those in Europe and the UK, though this research suggests the Australian labour force works longer in poor health than their antipodean counterparts.</p> <p>Kiely says the findings are important considerations for policymakers pondering questions of retirement and pension ages: the demands of some labour may not be evenly spread when it comes to considering health implications.</p> <p>“We have a pension age that has been rising steadily over the past couple of decades – it’s not rising anymore – but there is a strong expectation for people to be working longer,” Kiely says. “And if that is the case, then we need opportunities for work for mature age, older adults, and those work opportunities have to be suitable for their capacity to work.</p> <p>“We do need to address things like age and gender discrimination in the workforce. And we need to think about how we support people who are unable to work before they reach the pension age.”</p> <p>Kiely is extending his research into how the nature of work in Australia influences these high-level findings. He hopes this can explain why gender and education influence healthy working years.</p> <p>Further drilling down into other subgroups is important, say Dr Marty Lynch and Dr Ross Wilkie from Keele University, UK. They investigated healthy working life expectancy as part of Britain’s Independent State Pension Age Review last year. They too found Briton were working longer, but not at a rate that keeps pace with the national pension age.</p> <p>In a <em>Lancet</em> editorial accompanying the Australian research, they point out that the HILDA data evaluation only shows changes in average ages on gender and education lines.</p> <p>“The extent of HWLE [Healthy Working Life Expectancy] inequalities between subpopulations with multiple specific characteristics are likely to be even wider and will also indicate targets and interventions to increase the number of years that people can be healthy and in work,” they say.</p> <p>The impact of socioeconomic status on life expectancy and disease burden was recently highlighted in a large-scale review of Australia’s 30-year health data.</p> <p><a href="https://cosmosmagazine.com/people/society/australias-life-expectancy-is-up-but-healthy-years-are-a-different-story/">It found</a> while Australians have added 6 years to their life expectancy since 1990, those with lower socioeconomic backgrounds had a higher risk of death-causing disease.</p> <p><em>Image credits: Getty Images</em></p> <p><em><a href="https://cosmosmagazine.com/people/society/sickness-or-health-healthy-life-split-along-gender-education-lines/">This article</a> was originally published on <a href="https://cosmosmagazine.com">Cosmos Magazine</a> and was written by <a href="null">Cosmos</a>. </em></p> </div>

Retirement Life

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Essential money conversations retirees should have with family

<p>Discussions about funding retirement, aged care and inheritances may be uncomfortable. However, not having them risks your wishes going unmet and family conflicts where details aren’t clear. </p> <p>Hence having discussions about money while you are able to is one of the best (and cheapest!) investments you can make – for both you and your family.</p> <p>Precisely what those discussions entail will depend on your circumstances – and theirs. Yet many points apply almost universally:</p> <p><strong>What matters to you</strong></p> <p>Even the best laid plans mean nothing if those responsible for enacting them don’t know what they are or understand your reasoning behind them.</p> <p>Your will provides a legal overview of who gets what upon your death, while nominated beneficiaries determine how assets are divided from superannuation and some other structures.</p> <p>A separate letter of wishes can informally share your wishes, covering more than just legalities. Sharing this before your death allows family to clarify your wishes and ask questions. </p> <p><em>Go through:</em></p> <ul> <li>How your money should be managed now and longer term (e.g., you may want money set aside for grandchildren’s education, or have instructions for a dependent’s ongoing care).</li> <li>Funeral arrangements; cremation or burial; where you will be laid to rest.</li> <li>Plans for anyone other than direct family, charities etc.</li> <li>Any non-negotiables among your wishes.</li> </ul> <p><strong>Partner protections</strong></p> <p>Ensure your partner knows how they will be looked after if they outlive you. Similarly, your kids should know what if any support they will need to provide – especially important for blended families. </p> <p>Where beneficiaries have divorced/separated, will you exclude their ex from your estate? Are your records updated to reflect this?</p> <p>Ensure everyone knows the difference between joint tenants and tenants in common for property owners – only one automatically leaves your share of the property to your co-owner. </p> <p><strong>Health matters</strong></p> <p>How do you want to be looked after in your final years? Don’t assume your loved ones already know everything.</p> <p>Communicate your wishes, small and large – medications, dietary requirements, retirement living, palliative care, resuscitation.</p> <p>Discuss whether power of attorney and enduring guardianship are needed should you be unable to make decisions over your health and finances (e.g., due to dementia or stroke), and who will assume those responsibilities.</p> <p><strong>Family legacy</strong></p> <p>Consider the legacy you want to leave and whether this aligns with your family’s expectations.</p> <p>Is dividing assets equally among your children really fair if one is well-off while another struggles or has complex needs? </p> <p>Do your plans on inheritance unwittingly create headaches for the recipients – such as leaving property to someone who cannot afford to maintain it, or tax liabilities that eat into any financial gain?</p> <p>Discuss non-financial legacy too: do your offspring know about your (and hence their) heritage? Are there special family mementos/stories to pass on? This knowledge may be lost if you don’t share it now.</p> <p><strong>Place to call home</strong></p> <p>Given their financial, logistical, and emotional implications, living arrangements are crucial to discuss before things need to change (and change can be imposed suddenly, such as by a health emergency). </p> <p><em>Consider:</em></p> <ul> <li>Where would you want to go if you need high-level care?</li> <li>Is your current home suitable in your advanced years? How would any required modifications be paid for?</li> <li>Would you move nearer your kids? Downsize, upsize or sea/treechange?</li> <li>If you move, would you need to sell your current home? Could it be retained somehow?</li> <li>Do you want/expect kids to care for you? Are they capable of doing so? </li> <li>Could/would you live with one of your children? If so – such as paying to build a granny flat on their property – how does this affect your will? Would they be forced to sell so their siblings receive their inheritance?</li> </ul> <p><strong>Team united</strong></p> <p>Having everyone on the same page helps things to run smoothly – especially during difficult times such as a death or serious illness in the family.</p> <p><em>Stay aligned by:</em></p> <ul> <li>Introducing adult children to your financial adviser, lawyer, and accountant.</li> <li>Ensuring everyone knows where to find your will and who is your executor.</li> <li>Disclosing what is and is not up to date.</li> <li>Providing contingency access to passwords, important documents, keys etc.</li> <li>Sharing relevant policy details (e.g., life insurance).</li> </ul> <p>These discussions may be sensitive and difficult to initiate, but are crucial to ensure your wishes are known and enacted. Plus, they may encourage your loved ones to think about their own wishes – and give you all peace of mind for the future!</p> <p><strong><em>Helen Baker is a licensed Australian financial adviser and author of the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99). Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au">www.onyourowntwofeet.com.au</a></em></strong></p> <p><em>Image credits: Getty Images  </em></p>

Retirement Income

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Know thyself, know thy finances: which of the 5 money personalities are you?

<p><em><a href="https://theconversation.com/profiles/ayesha-scott-867030">Ayesha Scott</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> and <a href="https://theconversation.com/profiles/aaron-gilbert-867098">Aaron Gilbert</a>, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a></em></p> <p>When it comes to money, are you a big spender or a fearful saver? Do you give away all your money or ignore financial demands until they become urgent?</p> <p>After decades of focus on financial literacy, it has become clear there is more to how we manage our money than access to information. Now new research has identified five distinct money personalities that drive how we spend.</p> <p>Commissioned by Te Ara Ahunga Ora (Retirement Commission) for their free, independent personal finance site <a href="https://sorted.org.nz/">Sorted</a>, <a href="https://assets.retirement.govt.nz/public/Uploads/Financial-Capability-Research/Report-Money-Personality-Tool-Project-AUT-vFINAL.pdf">our study</a> included an extensive review of the research on personality traits, values and attitudes. We then created an online survey, completed by nearly 500 New Zealanders, exploring how people engaged with their money.</p> <p>The research findings form the backbone of a <a href="https://sorted.org.nz/tools/money-personality-quiz">new online money personality quiz</a> designed to help people understand their money personality and inform their financial decisions and behaviour.</p> <p>With New Zealand <a href="https://www.rnz.co.nz/news/business/492013/new-zealand-in-recession-as-gdp-falls-for-second-quarter">officially in a recession</a>, it has never been more important to understand money management. Despite our best intentions, we often struggle to make “good” financial decisions consistently – including saving enough, using debt wisely, and staying on top of insurance policies and KiwiSaver.</p> <h2>Doing better with our money</h2> <p>According to Te Ara Ahunga Ora, New Zealanders are <a href="https://assets.retirement.govt.nz/public/Uploads/Research/TAAO-RC-NZ-FinCap-Survey-Report.pdf">good with the basics of financial capability</a> – budgeting and keeping track of money. But we score lower than comparable countries like Canada, Norway, Australia and Ireland on more advanced financial capabilities like long-term savings. We also lack confidence when it comes to our cash.</p> <p>There is a growing body of evidence that personality traits, money values and attitudes each play a crucial part in either aiding or hindering us making those “smart” financial decisions.</p> <p>Attitudes towards saving, the degree to which we value material possessions, and how comfortable we are with risk, will all affect the financial decisions we make – and, as a result, our financial wellbeing.</p> <h2>The 5 money personalities</h2> <p>We identified five distinct money personalities, each with their own strengths and weaknesses: the enterpriser, socialite, minimalist, contemporary and realist.</p> <p><strong>An enterpriser</strong> is a financially confident, future-orientated planner who enjoys looking after their finances and is proud of being money savvy. Their strengths include self-control, financial knowledge and making their money work for them.</p> <p>An enterpriser is unlikely to make impulsive or emotional purchases. However, their aspirational approach – viewing money as a priority and a symbol of success – may pair badly with materialism, causing them to spend money to gain status rather than for value or utility. Enterprisers benefit from learning about investing and planning for the future.</p> <p><strong>The minimalist</strong> is frugal, confident with their saving ability, and on top of their financial situation. Minimalists value a simpler life, scoring low on materialism and are not prone to impulsive or emotional purchases.</p> <p>Their weakness is not always making their money work as hard for them as it could, as they are less likely to take financial risks – even where there is a potential for higher investment returns. Low-cost, passive investment strategies may appeal to minimalists.</p> <p><strong>A socialite</strong> is a joyful risk taker, outgoing, and confident with their money handling. A generous extrovert, they are more likely to be materialistic than other personality types and tend to live for today rather than plan for tomorrow.</p> <p>Their high tolerance for risk suggests some socialites may take on unwise levels of financial risk. Those in this group who are also impulsive or prone to emotional purchases may find themselves overspending or vulnerable to over-extending themselves with consumer debt.</p> <p>Socialites may like to explore active investment strategies and riskier investment classes, however. Taking calculated risks and building financial resilience is an important focus for them.</p> <p><strong>A contemporary</strong> doesn’t enjoy managing their money and they lack confidence when it comes to financial matters. They are likely to say they’re a spender despite being less materialistic than others; living for today, they tend to engage in impulsive emotional spending and are generous to a fault.</p> <p>For contemporaries, the focus is increasing financial resilience by paying down debt and building an emergency savings fund, enabling them to share their wealth with others without affecting their own financial well-being. Working on their money mindset and general financial knowledge may allow them to build confidence and savings, then take a passive or “set and forget” approach to their financial life.</p> <p><strong>A realist</strong> is future-focused, very conservative with risk, and values money highly. But they are not confident with their money handling, despite paying close attention to their financial situation.</p> <p>The most introverted personality type, a more aspirational realist may be materialistic but is unlikely to make impulsive or emotional purchases a habit. This suggests building confidence and encouragement to take appropriate investment risks is important. Given they do not like making money decisions, automation of bill payments and savings may appeal.</p> <h2>Know thy money self</h2> <p>Each money personality offers different challenges when it comes to making financial decisions.</p> <p>Taking Sorted’s money personality quiz is fun, but it’s also a useful financial decision you can make right now.</p> <p>It’s not just about the label. Knowing your money personality can help you understand your strengths and weaknesses when it comes to financial decision making, giving you tools to improve your financial resiliency and security.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/207621/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p> <p><a href="https://theconversation.com/profiles/ayesha-scott-867030">A<em>yesha Scott</em></a><em>, Senior Lecturer - Finance, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a> and <a href="https://theconversation.com/profiles/aaron-gilbert-867098">Aaron Gilbert</a>, Professor of Finance, <a href="https://theconversation.com/institutions/auckland-university-of-technology-1137">Auckland University of Technology</a></em></p> <p><em>Image credits: Getty Images</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/know-thyself-know-thy-finances-which-of-the-5-money-personalities-are-you-207621">original article</a>.</em></p>

Retirement Income

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The 12 smartest cat breeds that are equally cute and clever

<h2> </h2> <h2>How smart is your cat?</h2> <p style="font-size: medium; font-weight: 400;">Cats are delightfully complex creatures. If we dare to sleep in a few minutes late, they paw at our faces and meow, demanding breakfast. They can be warm and affectionate yet aloof when we’ve been away from the house too long. Even some of the smartest cat breeds display unusual cat behaviour.  But there’s no need for standardised tests to verify what we already know – cats are smart! Whether they’re mixed breed or purebred, small cat breeds or large cat breeds, the reality is that there’s no one accurate way to measure the intelligence of individual cats. However, recent research gives us some compelling evidence to back up what we know in our hearts: feline intelligence is unique.</p> <p style="font-size: medium; font-weight: 400;">Are you clawing to find out which cat breeds are the smartest? Do they happen to be sleek black cat breeds, gorgeous orange cat breeds or all of the above? Experts say the ones on our list stand out when it comes to their trainability, insatiable curiosity, investigative skills and puzzle-solving brain power.</p> <h2>Do cats have a high IQ?</h2> <p style="font-size: medium; font-weight: 400;">Before we reveal the smartest cat breeds, let’s take a closer look at just how clever these little lions are. We know that a cat’s brain is almost as structurally complex as a human brain. Cats have around 250 million neurons (tiny information processors) in their cerebral cortex, the part of the brain that solves problems, makes decisions, decodes emotions and creates complex behaviour, like why cats purr or why cats sleep so much. (In comparison, dogs have about 429 million neurons, and humans house an average of 86 billion.) And while more neurons in the brain does equal more cognitive ability, it isn’t necessarily a good indicator of intelligence. That’s because cognition can involve other areas outside the cerebral cortex.</p> <p style="font-size: medium; font-weight: 400;">So why are dogs generally thought to be smarter than cats? Is it because they have more neurons? Nerdy science aside, there are a host of theories. For starters, dogs have been domesticated for thousands of years and have been living and learning social tasks from humans longer than cats. Temperament wise, dogs are more patient and generally eager to please their humans. In contrast, cats are typically less eager to please, though some are exceptionally cooperative. They tend to be more impulsive, have far less patience and get frustrated and lose interest in something that’s boring to them.</p> <p style="font-size: medium; font-weight: 400;">However, cats are highly attuned to their surroundings, and how they interact and respond is expressing intelligence, says Teresa Keiger, an all-breed judge with the Cat Fanciers’ Association. That awareness is what helped cats survive for thousands of years in the wild. “I notice that cats who were rescued from outdoor living situations tend to be more intelligent, since they’ve had to learn to think on their feet,” says veterinarian, Dr Stephanie Wolf. Whether a mixed breed or pedigree, rare cat breed or fluffy cat breed, one thing is certain: cats are smart and trainable; they just might not all be interested.</p> <h2>1. Russian blue</h2> <p style="font-size: medium; font-weight: 400;">When it comes to the smartest cat breeds, the Russian blue is so clever that it’s more apt to train you than the other way around. Like an alarm, the Russian blue will wake you up to feed it breakfast and remind you when it’s dinnertime. In fact, if you’re looking for an accountability partner to maintain a strict schedule, this might be the cat for you. “This quiet breed is very attuned to its household,” says Keiger. “They’re incredibly smart, and they wait to make certain that any stranger is not a threat to safety.” Once they’ve issued your security clearance, they form a tight bond and are regarded as an affectionate cat breed with their humans – so much so that they’re known for hitching a ride on their human’s shoulders.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Russian blue</td> </tr> <tr> <td>Height</td> <td>25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–20 years</td> </tr> </tbody> </table> <h2>Abyssinian</h2> <p style="font-size: medium; font-weight: 400;">This gorgeous cat looks like it stepped out of the jungle and into your living room. From the forward-tilting ears to the large almond-shaped eyes and the stunning colours of its coat, it resembles a cougar. “Abyssinians are incredibly intelligent, good problem solvers and full of an insatiable curiosity,” says Keiger.</p> <p style="font-size: medium; font-weight: 400;">Perpetually alert and busy, the Aby is happiest when patrolling its environment and playing with challenging interactive puzzle toys. “I always think of Abys as the MacGyver of cats – if they had thumbs, they’d figure out how to fix anything,” Keiger says. Intelligence aside, Abys are highly social cats and love people and other felines. Plus, they are one of the cat breeds that gets along with dogds.   Who knows? Maybe the Aby could teach your old dog a few new tricks.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Abyssinian</td> </tr> <tr> <td>Height</td> <td>30–40 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–15 years</td> </tr> </tbody> </table> <h2>3. Egyptian mau</h2> <p style="font-size: medium; font-weight: 400;">The key to this exotic beauty’s happiness is sharpening its mental and physical skills. “Being able to offer enrichment is key to ensuring your cat is getting the best level of stimulation and exercise,” says veterinarian, Dr Julie Andino. That goes for all breeds, but this cat craves cat toys and activities that showcase its lightning-fast physical and mental responses. They’re so clever that they can even turn on the faucet to play in water – although we may never understand why some cats hate water when the mau wouldn’t miss an opportunity to splash their paws in it. After they’ve expended their energy figuring out the day’s puzzles, this cutie loves to snuggle up with their human.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Egyptian mau</td> </tr> <tr> <td>Height</td> <td>17–28 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–13 years</td> </tr> </tbody> </table> <h2>4. Burmese</h2> <p style="font-size: medium; font-weight: 400;">One of the smartest cat breeds, the Burmese craves attention, something you can learn from its body language.  “This intelligent breed loves to entertain its resident humans so much that it often checks to make certain someone is watching,” says Keiger. They’re also known for being dog-like and enjoy a rousing game of fetch, an unusually quirky cat behaviour. And they’re adorably stubborn. “When they make up their minds that they want something, they simply don’t take no for an answer and usually figure out a way to get it.” And that includes attention from you. Burmese cats are all about give-and-take when it comes to affection, but if you’re busy and ignore them too long, they might take it upon themselves to follow you around the house, rub against your leg  or plop down on your lap and snuggle, all to remind you that you have a cat that needs some loving.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Burmese</td> </tr> <tr> <td>Height</td> <td>25–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>9–13 years</td> </tr> </tbody> </table> <h2>5. American bobtail</h2> <p style="font-size: medium; font-weight: 400;">It’s one thing for the smartest cat breeds to learn new tricks, but when a cat also has emotional intelligence, that’s an impressive combo. These cute stubby-tailed felines are noted for their empathy and for providing a calming and assuring presence that’s equal to emotional support dogs. “They are also very in tune with their household and owners, offering a shoulder to cry on when needed,” says Keiger.</p> <p style="font-size: medium; font-weight: 400;">They even act like dogs – playing fetch, walking on a leash and rushing to greet guests when there’s a knock on the door. Devoted companion, a lover of people and other animals, the American bobtail is an adorable and lovable companion.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">American bobtail</td> </tr> <tr> <td>Height</td> <td>22–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>13–15 years</td> </tr> </tbody> </table> <h2>6. Japanese bobtail</h2> <p style="font-size: medium; font-weight: 400;">The smartest cat breeds are often breeds we have never heard of before. Take the Japanese bobtail, one of the rarest cat breeds in the world. Every Japanese bobtail has its own unique tail. Yes, you read that right. No two tails are ever alike. They consider themselves family members and are always ready to help, even if that means sitting on your sitting on your laptop. “They are active, intelligent, talkative cats who delight in mischief-making,” says Keiger. They love to travel, stay in hotels and quite literally jump through hoops and over hurdles to impress you – and entertain themselves. As brain power goes, it’s that human-like personality that makes them seem so bright. “Life is never dull with a Japanese bobtail,” Keiger says.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Japanese bobtail</td> </tr> <tr> <td>Height</td> <td>20–23 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–18 years</td> </tr> </tbody> </table> <h2>7. Siamese</h2> <p style="font-size: medium; font-weight: 400;">The Siamese is wicked smart and loves to learn new tricks, Dr Andino says. If you don’t provide interesting and challenging outlets to exercise its noggin, it will find its own stimulating activities, whether you approve or not. If there’s one thing that competes with utilising its brain power, it’s the love and affection it craves from humans. If this cat had a daily schedule, “get affection from human” would be a top priority. And Siamese cats will let you know by that infamous yowling. “The Siamese are very vocal and communicative with their human,” says Dr Andino. They’re likely to talk your ear off, especially if they want something. One of the smartest cat breeds, the Siamese gets along well with people of all ages, as well as other animals. Bonus: if you take any stock in choosing cats most compatible with your zodiac sign, the Siamese happens to be very compatible with Libras.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Siamese</td> </tr> <tr> <td>Height</td> <td>20–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>15–20 years</p> </td> </tr> </tbody> </table> <h2>8. Bengal</h2> <p style="font-size: medium; font-weight: 400;">The Bengal sports a jaw-dropping, highly contrasted coat of distinctive marbling – very similar to what you see on leopards and jaguars. Its striking beauty is why you should keep close tabs on your Bengal, as it’s the cat breed most often stolen. Beauty aside, this very confident and curious cat isn’t shy about asking you to play. Bengals tend to get a little set in their ways, so introducing new people and furry friends should be done at an early age, if possible. Need to lay down a few new house rules or teach it some tricks? No problem. Bengals pick those up lickety-split. Their athletic prowess is unmatched, but they need plenty of space to run, pounce, roam and jump – some even love to walk on a leash and explore the outdoors. Bengals are super sweet and often very chatty (here’s what their meows may mean) and happy to engage you in a conversation.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Bengal</td> </tr> <tr> <td>Height</td> <td>20–25 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–7 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>12–16 years</td> </tr> </tbody> </table> <h2>9. Korat</h2> <p style="font-size: medium; font-weight: 400;">Did you know that the smartest cat breeds could also bring you good fortune? The Korat is one of Thailand’s good luck cats, and no, they don’t mind if you pet them several times a day to increase your luck! Korats are freakishly observant and will watch everything you do. Don’t be surprised if they learn how to open their own box of treats. They’re a devoted companion, an outgoing feline and enjoy having guests in the house. One reason is they love to snoop. Like the nosy houseguest who peeks in your medicine cabinet, the Korat returns the favour, sniffing and investigating your guest’s shoes, purses, coats and anything else that piques their interest. Because Korats thrive when they are around people, being alone may cause cat anxiety.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Korat</td> </tr> <tr> <td>Height</td> <td>23–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>10–15 years</p> </td> </tr> </tbody> </table> <h2>10. Bombay</h2> <p style="font-size: medium; font-weight: 400;">Bred to look like the Indian black leopard, this midnight-black kitty walks with a sway much like its wild counterpart and is equally gorgeous and clever. Bombay cats are exceptionally friendly, outgoing and lovey-dovey. Family life is their jam, including younger humans and furry siblings. “The Bombay kitty is great at being trained, and they’re very motivated to show their people what they are capable of learning,” says Dr Andino. These cats thrive with continuous education, learning new tricks and solving challenging interactive puzzles. And when the love bug hits them, watch out. They will hunt for your lap and crash there until they get enough pets and belly rubs.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Bombay</td> </tr> <tr> <td>Height</td> <td>23–30 centimetres</td> </tr> <tr> <td>Weight</td> <td>3–5 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>12–16 years</td> </tr> </tbody> </table> <h2>11. Havana brown</h2> <p style="font-size: medium; font-weight: 400;">The brownie, as its fans dub it, is deeply connected to humans and savours affectionate companionship. (Havana browns insist on being involved in whatever you’re doing, yet they are remarkably sensitive and use both their paws to gently touch their humans. They share DNA with the Siamese, but their meows are quieter, charming and almost flirty. They might prefer the company of one favourite human over others in the family but tend to get along with humans of all ages, as well as furry roommates. Perhaps the most interesting characteristic is how they investigate. While most felines examine things with their nose, Havana browns use both their paws to check out trinkets and treasures.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Havana brown</td> </tr> <tr> <td>Height</td> <td>23–28 centimetres</td> </tr> <tr> <td>Weight</td> <td>4–6 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>8–13 years</td> </tr> </tbody> </table> <h2>12. Singapura</h2> <p style="font-size: medium; font-weight: 400;">The Singapura is the smallest domestic cat breed, with a whole lot of feisty goodness in a tiny package. If those big saucer eyes and adorable face aren’t captivating enough to get your attention, you might need some catnip. And don’t let the small frame fool you. Under that fur lies a muscular and athletic body. The Singapura is a social butterfly, always looking to be the centre of attention, in the cutest, playful ways. They are the life of any party, whether they’re invited or not. Conversations with Singapuras are a pure delight as well and never get stale – you could listen to their sweet meows for hours, and they’ll love your high-pitched baby talk just as much. Keenly observant, intelligent and extroverted, these cats still act like kittens well into adulthood.</p> <table style="font-size: medium; font-weight: 400;"> <tbody> <tr> <td colspan="2">Breed overview</td> </tr> <tr> <td colspan="2">Singapura</td> </tr> <tr> <td>Height</td> <td>15–20 centimetres</td> </tr> <tr> <td>Weight</td> <td>2–4 kilograms</td> </tr> <tr> <td>Life expectancy</td> <td>11–15 years</td> </tr> </tbody> </table> <p style="font-size: medium; font-weight: 400;"><em>Image credit: Shutterstock</em></p> <p><em>This article originally appeared on <a href="https://www.readersdigest.co.nz/food-home-garden/pets/the-12-smartest-cat-breeds-that-are-equally-cute-and-clever" target="_blank" rel="noopener">Reader's</a></em><a href="https://www.readersdigest.co.nz/food-home-garden/pets/the-12-smartest-cat-breeds-that-are-equally-cute-and-clever" target="_blank" rel="noopener"> Digest</a>.</p>

Family & Pets

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6 creative ways to make money

<p>If you’re planning for retirement or have already retired, it’s quite likely you’re conscious about sources of income to support your lifestyle change. Leaving the nine-to-five workforce doesn’t have to mean you will need to start to rely solely on your nest egg and investments for money.</p> <p>Here are a few ways you mightn’t have thought of to keep the money coming in;</p> <p><strong>Sell old stuff</strong> – Look around you at home. You may find an Aladdin’s cave of treasures, some of which are no longer any use to you. These can be a valuable source of pocket money – as long as your kids and grandkids don’t have eyes for them! There are an increasing number of ways to find potential customers hungry for your bargains. Sites like eBay, craigslist and Gumtree are the most popular if you’re digitally inclined, however don’t forget the old faithful garage sale – it’s also a great way to build your social connections with the local community.</p> <p><strong>Rent a room or car</strong> – This is another big growth industry as people and businesses look at their assets and clever ways to create two-way benefits by making them available to rent – users get an affordable and convenient resource and you get the hip-pocket benefit for something often under-utilised. There’s the obvious ideas such as renting out spare rooms to boarders, but also consider unused car parking spaces, a car that you may not often drive, even your house for location shoots for films and commercials.</p> <p><strong>Consulting or teaching</strong> – If you’ve left that 20-year corporate career but are still interested in options for work, there’s no shortage of ways to reinvent yourself. Think of how you can bridge your career experience and skills with part-time, consulting or tutoring roles.</p> <p>New work – You can also try something completely different such as being a film or television commercial extra (there are lots of roles for more mature characters), mystery shopper, dog walker, pet or child minder, tour guide or part time gardener.</p> <p><strong>Online gigs</strong> – Online outsourcing and working remotely is more popular than ever, and there’s a broad range of work you can now find online and undertake from the convenience of your desktop. Look at market research, blogging, paid surveys and reviews as a few options. Websites like Airtasker offer everything from jobs you can do from home such as copywriting, data input and logo design through to trade jobs such as lawn mowing or deliveries.</p> <p><strong>Home business</strong> – You might consider finally starting up your own business from home, whether it’s catering or cooking goodies for the local markets, making furniture, becoming the next Van Gough or writing thrillers. It’s a great way to realise a new or unexploited talent or skill and make some extra cash along the way. Another way of consolidating housing costs while supplementing income might be setting up a B&amp;B or taking a role as an onsite property manager.</p> <p><em>Image credit: Shutterstock</em></p>

Money & Banking

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There’s a growing gap between countries advancing LGBTQ+ rights, and those going backwards

<p>Prime Minister Anthony Albanese and Foreign Minister Penny Wong joined 50,000 people to march in support of queer rights across the Sydney Harbour Bridge for World Pride in early March. A week earlier, Albanese became the first sitting prime minister to march in Sydney’s Mardi Gras, something he’s done over several decades.</p> <p>And yet at the same time, in another part of the world, Uganda’s parliament passed <a href="https://theconversation.com/ugandas-new-anti-lgbtq-law-could-lead-to-death-penalty-for-same-sex-offences-202376">a string of draconian measures</a> against homosexuality, including possible death sentences for “aggravated homosexuality”. Any “promotion” of homosexuality is also outlawed.</p> <p>Seven years ago, I co-wrote a book with Jonathan Symons called Queer Wars. Back then, we suggested there was <a href="https://researchers.mq.edu.au/en/publications/queer-wars-the-new-global-polarization-over-gay-rights">a growing gap</a>between countries in which sexual and gender diversity was becoming more acceptable, and those where repression was increasing. </p> <p>Sadly, that analysis seems even more relevant today.</p> <h2>A growing gap</h2> <p>Some countries have been unwinding criminal sanctions around homosexuality, which are often the legacy of colonialism. This includes, in recent years, former British colonies <a href="https://www.hrw.org/news/2022/08/22/singapore-decriminalize-gay-sex">Singapore</a> and <a href="https://www.theguardian.com/world/2018/sep/06/indian-supreme-court-decriminalises-homosexuality">India</a>.</p> <p>But others have been imposing new and more vicious penalties for any deviation from stereotypical assumptions of heterosexual masculine superiority (what Australian sociologist Raewyn Connell <a href="https://journals.sagepub.com/doi/abs/10.1177/0891243205278639">terms</a> “hegemonic masculinity”).</p> <p>Anti-gay legislation is currently pending in Ghana, which led US Vice President Kamala Harris to <a href="https://www.bbc.com/news/world-43822234">express concerns</a> on a recent visit.</p> <p>These moves echo the deep homophobia of Russian President Vladimir Putin, who has <a href="https://www.bostonreview.net/articles/putins-anti-gay-war-on-ukraine/">bizarrely linked</a> intervention in Ukraine to protecting traditional values against LGBTQ+ infiltration.</p> <p>Meanwhile, reports from Afghanistan suggest that anyone identified as “LGBT” is <a href="https://www.hrw.org/news/2022/01/26/afghanistan-taliban-target-lgbt-afghans">in danger of being killed</a>.</p> <p>Indonesia recently passed legislation <a href="https://www.theguardian.com/world/2022/dec/06/indonesia-passes-legislation-banning-sex-outside-marriage">penalising all sex outside marriage</a>. This follows <a href="https://www.tandfonline.com/doi/full/10.1080/13639811.2022.2038871">years of anti-queer rhetoric</a> from Indonesian leaders and crackdowns in regional areas.</p> <p>And while the Biden administration is supportive of queer rights globally, the extraordinary hysteria <a href="https://www.theguardian.com/us-news/2023/mar/07/cpac-anti-trans-rhetoric">around trans issues in the Republican Party</a> reminds us the West has no inherent claim to moral superiority.</p> <h2>Where to next?</h2> <p>Speaking at the World Pride Human Rights Conference, both Wong and Attorney General Mark Dreyfus made it clear Australia would press for recognition of sexuality and gender identity as deserving protection, as part of <a href="https://www.foreignminister.gov.au/minister/penny-wong/speech/sydney-worldpride-human-rights-conference-opening-statement">our commitment to human rights</a>.</p> <p>Wong also announced a <a href="https://www.themandarin.com.au/213443-wong-announces-international-fund-for-lgbt-rights/">new Inclusion and Equality Fund</a> to support queer community organisations within our region.</p> <p>Australian governments have usually been wary of loud assertions of support for queer rights. This is partly due to a reasonable fear this merely reinforces the perception that such language reflects <a href="https://www.cambridge.org/core/journals/african-studies-review/article/abs/locating-neocolonialism-tradition-and-human-rights-in-ugandas-gay-death-penalty/33A06F4F33CF586E20E208BE790E71E0">a sense of Western superiority</a>, unwilling to acknowledge other societies may have very different attitudes towards gender and sexuality.</p> <p>Australia is part of the Equal Rights Coalition, an intergovernmental body of 42 countries dedicated to the protection of the rights of LGBTQ+ people, and has supported sexual and gender rights in the <a href="https://humanrights.gov.au/our-work/rights-and-freedoms/australias-second-universal-periodic-review-human-rights">country reviews</a> undertaken by the United Nations Human Rights Commission.</p> <p>Australia has a minimal presence in Uganda, and direct representations are unlikely to have much effect. Uganda is a member of the Commonwealth, as are Ghana, Kenya and Zambia, where official homophobia appears to be increasing. But there’s little evidence the Australian government sees this as a significant foreign policy forum, or is prepared to push for sexual rights through its institutions.</p> <p>As persecution on the basis of sexuality and gender identity increases, more people will seek to flee their countries. Queer refugees face double jeopardy: they’re not safe at home, but they’re often equally unsafe in their diasporic communities, which have inherited the <a href="https://www.weforum.org/agenda/2018/01/lgbt-refugees-untold-story/">deep prejudices of their homelands</a>.</p> <p>The UN’s refugee agency <a href="https://www.unhcr.org/lgbtiq-persons.html">reports</a> that most people seeking asylum because of their sexuality are unwilling to disclose this, because of discrimination within their own ethnic communities. This makes it impossible to have accurate numbers. But a clear signal from Australia would be a powerful statement of support – that it understands the situation and welcomes people who need flee because of their sexuality or gender expression.</p> <p>An official Canadian government document <a href="https://www.canada.ca/en/immigration-refugees-citizenship/services/refugees/canada-role/2slgbtqi-plus.html">states</a>: "Canada has a proud history of providing protection to and helping to resettle the world’s most vulnerable groups. That includes those in the Two-Spirit, lesbian, gay, bisexual, transgender, queer, intersex, and additional sexually and gender diverse community."</p> <p>Theirs is a model worth following.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/theres-a-growing-gap-between-countries-advancing-lgbtq-rights-and-those-going-backwards-203329" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Caring

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What are microaggressions? And how can they affect our health?

<p>Microaggressions are seemingly innocuous verbal, behavioural or environmental slights against members of minority communities.</p> <p>The term microaggressions was coined by American psychiatrist Chester Pierce in his 1970 essay Offensive Mechanisms. He explained:</p> <blockquote> <p><em>Most offensive actions are not gross and crippling. They are subtle and stunning. The enormity of the complications they cause can be appreciated only when one considers that these subtle blows are delivered incessantly. Even though any single negotiation of offence can in justice be considered of itself to be relatively innocuous, the cumulative effect to the victim and to the victimiser is of an unimaginable magnitude.</em></p> </blockquote> <p>While originally conceived in the context of race relations, microaggressions may also relate to gender, sexual orientation, religion, disability status, weight, or a combination of these.</p> <h2>What do microaggressions look like?</h2> <p>Consider these situations. All are real-life stories from people of colour I know (used with their consent):</p> <ul> <li> <p>a woman walks into a hairdresser’s shop. The shop is empty and the hairdresser is cleaning hair from the floor. The woman asks if she could get a haircut – if not right now, perhaps another day. The hairdresser says she can’t help as she is not taking on any new customers.</p> </li> <li> <p>a man is waiting to pick up his partner in his car, parked on a side street near his partner’s apartment, which is located in a predominantly white suburb. He is minding his own business sitting in his own car. Each time a person walks by, they stare at the man, and keep staring as they walk past</p> </li> <li>a couple is waiting to order coffee in a busy city cafe. The server is chatty with the white couple ahead of them. When they progress to the front of the line, the server is curt, avoids eye contact, and is eager to move on to the next customer. After placing their order, the couple stands where other patrons had previously waited for their orders. A staff member comes over and asks the couple to wait outside instead.</li> </ul> <p>Examples of microaggressions towards other identity minorities may include moving away from a trans person on public transport, or not considering wheelchair accessibility needs when booking venues for meetings or events.</p> <p>Each of these incidents in isolation may not seem particularly harmful, and some may even chalk them up to coincidences or “reading too much into a situation”.</p> <p>However, when experienced repeatedly, daily, or even multiple times a day, they can harm people’s psychological and physical health.</p> <h2>Microaggressions are subtle</h2> <p>Microaggressions are often so subtle that even the victim may not realise that they have just experienced one until later – likely because microaggressions are often accompanied with dissociation (i.e. disconnection from thoughts, feelings or personal sense of identity).</p> <p>As psychologist Ron Taffel explains, dissociation is a “psychically handy” tool that helps ease the pain,</p> <blockquote> <p><em>making sure that the moment does not fully register or does its damage until a less vulnerable time later – perhaps during a quiet time alone…</em></p> </blockquote> <h2>Microaggressions affect our physical and mental health</h2> <p>Microaggressions can occur in all environments, from the workplace, to shops, medical clinics, schools, universities, even while walking or parked on the street. So victims often become increasingly self-conscious and hypervigilant.</p> <p>The impacts of microaggressions may extend beyond psychological burden and also impact the body’s physiological state.</p> <p>When humans perceive a sense of imminent danger, the body’s “fight, flight, freeze response” is activated. While this is a useful evolutionary mechanism to protect us from physical danger, when triggered frequently – as may be the case with microaggressions – it can take a toll on the body and contribute to issues such as high blood pressure, anxiety, depression and addiction.</p> <p>Racial microaggressions have also been associated with suicide risk. One study found experiencing race-related microaggressions leads to more symptoms of depression, which in turn increases thoughts of suicide.</p> <h2>Microaggressions may deter people from seeking help</h2> <p>Health issues among victims may be further compounded when microaggressions are experienced in the health-care sector. A study from 2011 found that sexual orientation-related microaggressions (for example, derogatory comments or assumptions about a person’s sexual orientation) reduced the likelihood of LGBTIQ+ people seeking psychotherapy and impacted their attitudes towards therapy and therapists.</p> <p>Research involving Indigenous people also suggests microaggressions impact help-seeking behaviours in this group (such as not scheduling or attending regular health-care appointments), which subsequently increases the risk of hospitalisation.</p> <h2>Indirect effects of microaggressions</h2> <p>Microaggressions may also impact people’s health status indirectly. Research suggests repeated microaggressions can cause marginalised groups to internalise feelings of inadequacy.</p> <p>Over time, this internalised oppression may impact their academic and professional success, and consequently socioeconomic status.</p> <h2>Sceptics and victim-blaming</h2> <p>Sceptics often attribute microaggressions to victims’ “negative emotionality” – a tendency to show negative affect and always feel like a victim.</p> <p>However, proponents argue that this is a form of victim-blaming that further compounds the harm caused by microaggressions.</p> <p>Clinical psychologist Monnica Williams suggests that the years of unchecked microaggressions themselves could be the very thing to cause negativity in marginalised people.</p> <h2>Victims’ responses to microaggressors</h2> <p>Victims’ responses to microaggressions can vary among people, and among events experienced by the same person. Victims have to regularly decide whether to let it slide or confront the aggressor.</p> <p>The discourse on microaggressions in social media seems to be on the rise. One study found that there was a drastic increase in the usage of the term “microaggression” on Twitter between 2010 and 2018. Social media discussions and other online spaces may help victims (particularly younger people) to respond more critically to microaggressors.</p> <p>Other technological innovations, such as the virtual reality-based intervention Equal Reality, are also helping people walk in another’s shoes, recognise unconscious bias, mitigate risk of microaggressions, and promote more inclusive workplaces.</p> <p><em>Image credit: Shutterstock</em></p> <p><strong><em>If this article has raised issues for you, or if you’re concerned about someone you know, call Lifeline on 13 11 14.</em></strong></p> <p><em>This article originally appeared on <a href="https://theconversation.com/what-are-microaggressions-and-how-can-they-affect-our-health-193309" target="_blank" rel="noopener">The Conversation</a>.</em></p>

Mind

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Should I put more money into my super? What are the benefits and can I take it out before retirement if I need it?

<p>Superannuation is never far from the headlines lately, with the government recently calling for <a href="https://treasury.gov.au/consultation/c2023-361383">views</a> from the public on what the objective of super should be. </p> <p>The basic idea behind super is you set aside a portion of your pay over your working life, so you can build up a nest egg to see you through your retirement years. </p> <p>But what if you’re worried you might not have enough super by the time you retire? Yes, you could top up your super now and watch the nest egg grow through the magic of <a href="https://moneysmart.gov.au/saving/compound-interest">compound returns</a>– but what are the downsides?</p> <p>If you’re considering putting more money into your super, and want to know more about how the whole system works, here are the basics.</p> <h2>What are the rules about putting more money into my super?</h2> <p>First, make sure you know where your superannuation actually is and how much you’ve got so far. This <a href="https://www.ato.gov.au/forms/searching-for-lost-super/">page</a> from the Australian Tax Office explains how to search for any lost super.</p> <p>The next thing to know is there are <a href="https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions---too-much-can-mean-extra-tax/?page=2#Understanding_contribution_caps">limits</a> to how much you can contribute into superannuation. </p> <p>There are two types of super contributions you can make.</p> <p>The first category is called “<a href="https://moneysmart.gov.au/grow-your-super/super-contributions">concessional contributions</a>”. These are taxed at 15%, which may be lower than the tax you’d otherwise have to pay on that money. So making these super top-ups can not only grow your nest egg, but save you tax.</p> <p>The amount of concessional contributions you can make is A$27,500 per annum. That figure includes all the super your employer puts in your super account and any extra contributions you make under a salary sacrifice scheme or where you are claiming an income tax deduction.</p> <p>The second category, known as “non-concessional contributions”, means money you pay into your super withoutclaiming a tax deduction. This could be, for example, money from savings, an inheritance or a lottery win.</p> <p>There is a limit of $330,000 over three years (or $110,000 per year), for these contributions.</p> <h2>What are the benefits of topping up my super?</h2> <p>Two words: compound returns.</p> <p>Compound returns are where you earn returns not only on the original investment you put in, but also on any returns on that investment. As the government’s <a href="https://moneysmart.gov.au/saving/compound-interest">Moneysmart</a> website puts it, “you get interest on your interest”.</p> <p>Over the years, this means you could earn a lot more than you would if you didn’t top up your super. </p> <p>How much more? Well, it depends on the investment return and fees of your fund.</p> <p>But as an example: thanks to compound returns, putting an extra $100 per month into your super from age 30 could <a href="https://www.calc.help/industrysuper/add-extra-to-your-super">mean you retire</a> with an extra $65,000 in your account (here, I’ve assumed investment returns of 7.5%, accumulation inflation of 4% and salary inflation of 4%).</p> <p>And the longer it is there, the more it will grow – so starting top-ups early might pay off. </p> <p>This is particularly important for <a href="https://theconversation.com/spirals-and-circles-snakes-and-ladders-why-womens-super-is-complex-103763">women</a>, whose super balances may look a bit feeble if they take parental leave or cut their hours while raising a family.</p> <p>Then there’s the tax benefits of super top-ups. If you would normally pay a net tax rate higher than 15% on investments such as shares, your money will grow more quickly inside superannuation than shares.</p> <p>You may also be eligible for government co-contributions that add to your balance if you make a non-concessional contribution during the year and your income is less than $57,016.</p> <h2>So what’s the downside? Can I access my superannuation before retirement?</h2> <p>Basically, no. You must meet a “<a href="https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/withdrawing-your-super-and-paying-tax/?page=2#Conditionsofrelease">condition of release</a>” before being able to access your superannuation.</p> <p>The most common is retirement, defined as reaching the age of 65 or leaving work after reaching “preservation age” (which is 60 for anyone born after July, 1964).</p> <p>There are some <a href="https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Early-access-to-your-super/">special circumstances</a> where you may be able to access your superannuation early.</p> <p>These are very narrow, and include serious financial hardship or necessary medical treatment that cannot be funded any other way. </p> <p>Death or terminal illness also qualify for release.</p> <h2>But what if I need a deposit for a house?</h2> <p>This is a dilemma for non home-owners. After compulsory superannuation guarantee deductions and HECS-HELP, it may be hard to save a deposit.</p> <p>One of the few circumstances where you access your superannuation early is through the <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">First Home Super Savers Scheme</a>. </p> <p>If you make voluntary contributions, you may be able to withdraw these contributions for a home deposit. </p> <p>However, this scheme is very tightly regulated. You can read more about the rules for this scheme <a href="https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/">here</a>.</p> <h2>So… should I put more money into my super?</h2> <p>It depends. If you do, make sure you understand you will not be able to access that money until retirement.</p> <p>If you own your home (or intend to rent until retirement) you may want to put more into superannuation while you can afford it, knowing it is contributing to a secure retirement. </p> <p>But if home ownership is your goal, you should think carefully about choosing between superannuation and saving for a home deposit.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared in <a href="https://theconversation.com/should-i-put-more-money-into-my-super-what-are-the-benefits-and-can-i-take-it-out-before-retirement-if-i-need-it-201950" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Retirement Income

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Don’t let financial shame be your ruin: open conversations can help ease the burden of personal deb

<p>Nearly <a href="https://www.ipsos.com/en-nz/19th-ipsos-new-zealand-issues-monitor">two-thirds of New Zealanders</a> are worried about the cost of living, and a quarter are worried about <a href="https://www.canstar.co.nz/wp-content/uploads/2023/03/Consumer-Pulse-Report-NZ-2023-Final-4.pdf">putting food on the table</a>. But the <a href="https://visionwest.org.nz/food-hardship-part-one/">shame</a> that can come with financial stress is preventing some people from seeking help. </p> <p>According to a recent survey, a third of New Zealanders were not completely truthful with their family or partners about the state of their finances, and 12% <a href="https://www.stuff.co.nz/business/money/129477493/financial-infidelity-research-finds-kiwis-hiding-debts-from-their-partners">actively hid their debt</a>. This shame and worry about money can spill over into <a href="https://www.nzherald.co.nz/bay-of-plenty-times/news/concerns-buy-now-pay-later-schemes-could-fuel-addiction-as-kiwis-spend-17b-last-year/VOV3VIDIG2MZBGJEGPMLGWDMJI/">addiction</a>, <a href="https://www.newsroom.co.nz/i-had-serious-concussion-bad-credit-and-15000-debt-abuse-survivor">violence</a> and <a href="https://corporate.dukehealth.org/news/financial-strains-significantly-raise-risk-suicide-attempts">suicide</a>. </p> <p>Considering the effect of financial stress on our wellbeing, it is clear we need to overcome the financial stigma that prevents us from getting help. We also <a href="https://www.apa.org/topics/money/family-financial-strain">owe it to our kids</a> to break the taboo around money by communicating our worries and educating them on how to manage finances better. </p> <h2>The burden of growing debt</h2> <p><a href="https://www.stuff.co.nz/business/money/300817697/mortgage-pain-homeowners-facing-repayment-hikes-of-up-to-900-a-fortnight">Ballooning mortgage repayments</a> are compounding the financial distress of many New Zealanders. At the beginning of 2023, an estimated 11.9% of home owners were behind on loan payments, with more than <a href="https://www.rnz.co.nz/news/business/485045/data-shows-430-000-new-zealanders-behind-in-credit-repayments-in-january">18,400 mortgagees in arrears</a>. </p> <div data-id="17"> </div> <p>Given the <a href="https://www.treasury.govt.nz/publications/an/an-21-01-html">majority of household wealth</a> in New Zealand is in property, our financial vulnerability is closely linked to the ebbs and flows of the <a href="https://content.knightfrank.com/research/84/documents/en/global-house-price-index-q2-2021-8422.pdf">second most overinflated property market</a> in the world. </p> <p>There are also cultural reasons for growing financial distress. Many households have taken on significant debt to “<a href="https://www.stuff.co.nz/business/7616361/Keeping-up-with-the-Joneses">keep up with the Joneses</a>” and to pursue the quintessential <a href="https://www.interest.co.nz/property/99890/westpac-commissioned-survey-suggests-many-new-zealanders-still-pine-quarter-acre">quarter-acre dream</a>. Social comparison and peer pressure act as powerful levers contributing to problem debt and over-indebtedness. </p> <p>The average household debt in New Zealand is more than <a href="https://tradingeconomics.com/new-zealand/households-debt-to-income">170% of gross household income</a>. That is higher than the United Kingdom (133%), Australia (113%) or Ireland (96%).</p> <h2>The rise of problem debt</h2> <p>And we are digging a deeper hole. Over the past year, <a href="https://www.rnz.co.nz/news/business/485045/data-shows-430-000-new-zealanders-behind-in-credit-repayments-in-january">demand for credit cards increased by 21.7%</a>. The use of personal debt such as personal loans and deferred payment schemes <a href="https://www.nzherald.co.nz/business/demand-for-personal-credit-rises-arrears-also-up-as-cost-of-living-bites/YCEM74CII5FQBPJXO3UOG4Y3GY/">is also climbing</a>. There is a real risk this debt could become problem debt. </p> <p>Problem debt can have severe and wide-reaching consequences, including <a href="https://theconversation.com/over-300-000-new-zealanders-owe-more-than-they-own-is-this-a-problem-173497">housing insecurity</a>, <a href="http://www.socialinclusion.ie/publications/documents/2011_03_07_FinancialExclusionPublication.pdf">financial exclusion</a> (the inability to access debt at affordable interest rates), <a href="https://www.tandfonline.com/doi/full/10.1080/07409710.2012.652016?journalCode=gfof20">poor food choices</a> and a plethora of <a href="https://bmcpublichealth.biomedcentral.com/articles/10.1186/1471-2458-14-489">health problems</a>. </p> <p>Yet, the hidden <a href="https://spssi.onlinelibrary.wiley.com/doi/10.1111/sipr.12074">psychological</a> and <a href="https://link.springer.com/article/10.1007/s11205-008-9286-8">social cost of financial distress</a>remains often unspoken, overlooked and underestimated.</p> <p>Even before the pandemic, <a href="https://www.scoop.co.nz/stories/BU1909/S00616/research-shows-financial-stress-impacts-mental-wellbeing.htm">69% of New Zealanders were worried</a>about money. The share of people worrying about their financial situation was higher for women (74%), and particularly women aged 18-34 (82%). It is no coincidence that the latter are particularly at risk of problem debt through so-called <a href="https://acfr.aut.ac.nz/__data/assets/pdf_file/0008/691577/Gilbert-and-Scott-Study-2-Draft-v10Sept2022.pdf">“buy now, pay later” schemes</a>. </p> <p>The stigma of financial distress extends beyond the vulnerable and the marginalised in our society. A growing number of <a href="https://www.rnz.co.nz/news/political/467417/middle-income-families-hoping-for-help-in-budget-as-rising-costs-sting">middle-class New Zealanders </a> are quietly suffering financial distress, isolated by financial stigma and the taboos around discussing money. When pressed, one in two New Zealanders would rather <a href="https://www.scoop.co.nz/stories/BU2203/S00384/research-shows-wed-rather-talk-about-politics-than-our-finances.htm">talk politics over money</a>. </p> <h2>Time to talk about money</h2> <p>Navigating financial distress and <a href="https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=2526&context=sulr">stigma</a> can feel overwhelming. Where money is a taboo subject, it may feel safer to withdraw, maintain false appearances, be secretive or shun social support. </p> <p>This tendency to avoid open discussions and suffer in silence can lead to <a href="https://loneliness.org.nz/lonely/at-home/financially-struggling/">feelings of isolation</a> and contribute to <a href="https://theconversation.com/how-financial-stress-can-affect-your-mental-health-and-5-things-that-can-help-201557">poor mental health</a>, such as depression, anxiety and emotional distress. </p> <p>Sadly, the trauma of living in financial distress can also <a href="http://irep.ntu.ac.uk/id/eprint/39442/1/1307565_Wakefield.pdf">break up families</a>. Losing the symbols of hard-gained success and facing the prospect of a reduced lifestyle can be tough. It often triggers feelings of personal failure and self doubt that deter us from taking proactive steps to talk openly and seek help. </p> <p>But what can families do to alleviate some of this distress?</p> <h2>Seek help</h2> <p>First, understand that <a href="https://www.ft.com/content/86767aac-98e0-4dae-8c5a-d3301b030703">you are not alone</a>. Over 300,000 New Zealanders <a href="https://theconversation.com/over-300-000-new-zealanders-owe-more-than-they-own-is-this-a-problem-173497">owe more than they earn</a>.</p> <p>Second, seek help. There are many services that help people work through their financial situation and formulate a plan. In the case of excessive debts, debt consolidation or <a href="https://goodshepherd.org.nz/debtsolve/">debt solution loans</a> may help reduce the overall burden and simplify your financial situation. </p> <p>For those struggling with increasing interest on their mortgages, reaching out to your bank early is critical. During the 2008 recession, banks in New Zealand <a href="https://www.beehive.govt.nz/release/banks-exchange-letters-crown-support-distressed-mortgage-borrowers">worked with customers</a> to avoid defaulting on mortgages, including reducing servicing costs, capitalising interest and moving households to interest-only loans. It is essential to understand that the <a href="https://www.stuff.co.nz/life-style/homed/real-estate/130677426/are-we-on-the-brink-of-a-wave-of-mortgagee-sales">banks do not want mortgagees to fail</a>, and that options exist.</p> <p>To help future generations avoid debt traps, we need open communication about money – also known as “<a href="https://link.springer.com/article/10.1007/s10834-020-09736-2">financial socialisation</a>”. This includes developing values, sharing knowledge and promoting behaviours that help build <a href="https://files.eric.ed.gov/fulltext/EJ1241099.pdf">financial viability and contribute to financial wellbeing</a>. </p> <p>The lessons about handling money from family and friends are crucial for <a href="https://www.frontiersin.org/articles/10.3389/fpsyg.2020.02162/full">improving our children’s financial capability</a>, helping them be <a href="https://www.fsc.org.nz/it-starts-with-action-theme/growing-financially-resilient-kids">more financially resilient</a> and better able to survive the stresses we are experiencing now – and those <a href="https://www.stuff.co.nz/business/money/300836616/heres-how-much-household-costs-are-expected-to-increase">yet to come</a>.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/dont-let-financial-shame-be-your-ruin-open-conversations-can-help-ease-the-burden-of-personal-debt-202496" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Retirement Income