Rising Costs, Delayed Retirements, and Shrinking Support – Australians are under pressure like never before!
The Household, Income and Labour Dynamics in Australia (HILDA) Survey (i), released by the Melbourne Institute, shows just how much life has shifted over the past two decades.
- People are working longer: In 2003, nearly 70% of men in their early 60s were already retired. By 2023, that had fallen to just 41%. More Australians are staying in the workforce well into their late 60s because they can’t yet afford to step back.
- Families are smaller: The average number of children Australians say they’d like has fallen since 2005. The cost of raising kids, from childcare to school fees – is a major factor.
- Support networks are shrinking: Fewer people report having strong friendship circles or seeing friends regularly. Many Australians are feeling more isolated than in the past.
Taken together, these findings highlight the pressure households are under: rising costs, delayed retirements, and less support from family and friends to lean on.
What this means for you:
If you’ve felt stretched in recent years, you’re not imagining it. Families are balancing higher grocery bills, rising insurance premiums, childcare costs, and mortgage repayments, all while trying to save for retirement and give their kids the best opportunities.
The good news is that you don’t have to do this alone. Having an Adviser means you’ve got someone in your corner who understands the pressures and has practical strategies to ease them.
Here are some of the ways we’re helping clients right now:
1. Bringing retirement forward:
Retirement doesn’t have to be something you delay until the government pension kicks in. By making the most of superannuation, structuring investments tax-effectively, and creating a personalised long-term plan, we can help bring retirement forward, so you retire when you’re ready, not when you’re forced to.
2. Making family finances manageable:
Raising kids comes with big financial demands – childcare fees, education costs, extracurricular activities, even saving for university. We help clients set up education bonds and family savings plans, restructure debt, and build budgets that allow them to provide for their children without constant money stress.
3. Creating breathing space in the budget:
It’s not just the big costs; it’s the everyday bills that add up. Insurance premiums, groceries, energy bills, petrol. A clear budget, paired with smart cashflow strategies, helps you feel in control rather than overwhelmed. Many clients tell us the relief comes not just from saving money, but from knowing exactly where they stand.
4. Building a financial safety net:
With smaller family sizes and less reliance on friends or community, financial resilience matters more than ever. We make sure clients have the right buffers in place, from emergency funds to insurances – so that unexpected events don’t derail long-term plans.
A reassuring note:
The HILDA survey paints a clear picture: Australians are retiring later, feeling the squeeze of rising costs, and reporting smaller support networks. But your story doesn’t need to follow that path.
With the right planning, you can:
- Retire earlier, and with confidence.
- Support your children without it derailing your own financial future.
- Feel more secure and less stressed about day-to-day costs.
At Clear Sky, we’re here to help you find that balance. If you’re feeling the pinch, please remember that you’re not alone. Our experienced Team is here to listen, guide, and work with you to find the right path forward.
Call us on 1300 640 899, or contact us anytime. We’re here for you.
Melbourne Institute. (2023). The Household, Income and Labour Dynamics in Australia (HILDA) Survey: https://melbourneinstitute.unimelb.edu.au/hilda (i)
Important Information:
Clear Sky Financial Pty Ltd (ABN 36 634 263 148) is a Corporate Authorised Representative No.1299668 of InterPrac Financial Planning Pty Ltd (Australian Financial Services Licence Number 246638). Clear Sky Finance Pty Ltd (ACN 679 620 716) is authorised under Australian Finance Group Ltd ACN 066 385 822, Australian Credit Licence 389087.
The information in this document is true and correct at the time of publication. It is general in nature and does not take into account your objectives, financial situation or needs. Before acting on this information, consider whether it is appropriate to you, and seek personalised advice where required.
