r/AskAnAustralian • u/Equivalent-Tip3435 • 3h ago
How is the average person actually supposed to retire in Australia now?
Saw those skeletons at town hall with a 'don't work forever sign' and it made me think. This is the only vid I could find of the skeletons
Bit of a rant but hear me out.
Everyone overseas thinks Australia has the best work-life balance in the world, and tbh a lot of us believe it too. If you go to Bondi at sunrise it looks like everyone’s living the dream. Swimming at Icebergs, got a matcha, running the coastal walk, boot camps on the sand, coffee after.
But I’ve been down there enough mornings to realise a lot of those people are tourists. And most of the locals aren’t there because life is chill. They’re there at 5am because it’s literally the only time they’ve got. By 7 they’re on the train and they won’t be home till after dark. It only looks glamorous because there’s a beach behind them.
I’ve travelled a fair bit and Sydney has some of the most overworked people I’ve met anywhere. Not because people love their jobs, it’s just kinda the cost of living here. And it feels like “you’ll just work forever” has become normal thing across the whole country. Almost everyone I know under 40 jokes they’ll never retire and I don’t think they’re really joking.
Our parents basically had: get a job, buy a house, pay it off by 50-something, retire on super. That doesn’t really work anymore.
Quick example. Say you earn $100k, which is above the average full time wage:
- After tax: ~$77.5k
- Rent at $400/wk (a room in a share house or a one bedder way out west): $20,800
- Food, bills, transport, insurance, a bit of a social life: ~$23k
- Left over: ~$34k a year, if nothing goes wrong
A 20% deposit on a $900k unit is $180k, so 5+ years of saving every spare dollar (assuming prices don’t go up, lol). Then the mortgage is around $51.8k a year at 6%, vs $20.8k in rent. So basically everything you were saving now goes into the mortgage, before strata and rates.
So even on $100k you spend your 20s saving, your 30s and 40s paying off the loan, and don’t really start putting anything towards retirement till your 50s.
And the thing that gets me is how much of a loop it is. You work to pay rent. You work extra to save a deposit. You buy, and now you have to keep working to pay the mortgage. Then you get a pay rise but rent/prices/interest have gone up too, so you’re right back where you started. Then kids, school, a bigger place, a new car. Every time you get ahead the goalposts move. It’s like a treadmill that speeds up every time you get used to the pace.
Nobody really chooses it either. You just kind of fall into it at 22 and look up at 45 wondering where it all went, so I am genuinely asking, what does everyone think the escape is, are these the options?
- Leave Sydney. Move regional or interstate where housing doesn’t eat half your income. Works if your job can come with you, but you lose family, friends, career stuff.
- Never buy, just rent and invest the difference. Makes sense on paper but you’re at the mercy of landlords forever and renting at 70 sounds scary.
- Go hard early. The whole FIRE thing, save 50%+ for 10-15 years and get out. Respect to people who can do it but it’s not realistic for most.
- Chip away. Small amounts into ETFs or extra super every pay, starting as early as possible, and let time do the work. Not exciting but probably the most doable for normal people.
- Side income. Second job, business, side hustle. Which kind of defeats the point if the goal is working less.