The chart below is from a recent analysis from the World Economic Forum The report points out in detail the simple fact that people are living longer than their retirements savings, the returns they have from their existing investments are inadequate and the government will struggle to make up any shortfall.
The takeaway message is that without action many will spend the last few years of their lives in poverty. Interestingly this was the driver for most of the attendees at the recent Retire Early seminar we held on the Gold Coast and which is being repeated in Melbourne in Sydney
The issue with preparing for retirement is that it takes a different skill set than short term trading which was discussed last year. Wealth creation over the long term especially for new investors is a problematic task simply because of the number of myths they have been exposed to. Most telling in the discussions at the Gold Coast was the reliance upon external sources and how unsuccessful that had been.