the classic story breaking the bank

if super funds don't pivot to green, your future retirement pot could shrink by almost half.

new financial modelling reveals that australian super funds may face an estimated 46% drop in returns by 2050 if climate change remains unaddressed.

financial analysts at ortec finance just looked at australia's 30 biggest super funds and the numbers are pretty grim. if we don't hit climate goals, the extreme weather and failing infrastructure could wipe out almost half of the investment returns we are counting on for retirement. even a messy, fast transition to a green economy could see a short-term hit of 18% to those fund balances.

the issue is that many of these massive funds are still putting three times more money into fossil fuel expansion than clean energy projects. since our super makes up a massive $4.5 trillion pool of cash, where that money goes right now determines if you will actually have enough to live on in thirty years. it is making the choice between short-term dividends and your long-term survival fund.

while you're cutting back spending, those over 65+ are spending like it's going out of style.

recent surveys show that annual spending growth for 25-34 year olds has slowed to 4.2% while retirees increased their spending by over 10%.

the spending gap between the generations is widening fast. while overall household spending slowed to a tiny 0.3% growth in june, it's younger aussies who are doing the heavy lifting by hitting the brakes on their lifestyle. for those aged 18 to 24, spending growth was basically slashed in half over the last year.

the divide comes down to who owns what. younger people are feeling the heat from higher interest rates on mortgages and rent hikes, leaving less for anything else. meanwhile, the over-65 crowd is recording the strongest spending growth of any group, showing that the cost-of-living squeeze isn't hitting every kitchen table the same way.