But COVID has ended this world-leading economic run. For the first time in 28 years we are in recession. After a small contraction in the March quarter, our economy slumped a further seven per cent in the June quarter.

Things will get worse before they get better. The second lockdown in Victoria has created such a drag to our recovery that we can expect to see a further contraction in the September quarter.

No tension between lives and livelihoods

In time the economy will recover. And what's clear is that containing the pandemic is the gateway to economic recovery.

Much of the debate on the pathway to recover has revolved around a perceived tension between managing the health crisis versus reopening the economy. People are asking how many deaths we can morally bear for a strong economy.

But this is a false dichotomy. In reality, there is no tension between lives and livelihoods.

Research shows that managing the health crisis is actually the pathway to achieving economic prosperity. A recent analysis by The Economist showed that it is the countries who have successfully contained the pandemic who have the best economic outlook.

Spending our way to recovery

That is why, as a community, we must all take sensible measures to contain the virus.

But it's also important that we keep spending to keep the wheels of commerce rolling.

It's sensible to tighten your belt when things go off track in retirement and you feel uncertain about the future. But share markets have largely rebounded and it is likely you can still afford the retirement you always planned.

So, if you're putting off that planned car upgrade or kitchen renovation, think twice.

The beat goes on. If we take sensible health precautions, then there is no reason why we shouldn't go on spending our nest eggs as we had always planned.

Because retirement is long, and if we continue to live boldly every day, it won't be a matter of 'if' the economy recovers but 'when'.