2 Comments - Write a Comment

  1. Can you address the topic of superannuation again please. This is a sore point for a lot of lower income earners at the moment. I have been unable to find a site where I can lobby against superannuation. I am a low income earner but I am not of low intellect. It seems that the super funds are making the asumption that low income earner don’t have the brains to read or add up their fees. I have a lot to say on the matter, in short it is the biggest con out there. I am very well informed on all facets of the industry, but it boils down to one thing, people are loosing their money. The government are making money, the industry is making money, we as low income earners are not. After 7 years of super investments I am down $22.36 against my earnings after fees and taxes. That money forms part of my income, it should be mine to decide where I want it to go. It could still remain conpulsory savings, I know had I invested that amount of money in a bank on a fixed rate 7 years ago I would have made a reasonable return. I know the argumement is against the banks having the control, but the truth is the banks already have control so why not let them work for us. Plus if they have more money to play with they might be kinder with the mortgage interest rates and savings rates. I want to see compulsory super abolished. I know there are many people who feel the way I do, that the rich get richer and the poor get poorer. It is the dark ages once again, pay rises (of which there are none)and we are unlikely to see any time soon especially in Qld,I believe super is to blame for this. This is making us feel stupid because we are actually forces to do this when it is obviously hurting us. It is the true Robin Hood story but without Robin Hood, just the fat tax man and his useless men. I look forward to your current words on this matter.

    Regards Cindy

    Reply
    1. Andrew Duncanson
      Andrew Duncanson · Edit

      Hi Cindy,

      Sorry to hear your super isn’t working for you.

      There’s plenty wrong with the way super works. The Federal Government is actually in the process of trying to improve things a little, by setting out rules for super funds to offer simple, low cost “MySuper” accounts. But that will take time to come to reality, even if the Government is around long enough to get it started.

      The good news is that there are two things that people can do right now, to make the best of their super:

      1. You can choose which fund your super goes to, to make sure you don’t pay more in fees than you need to. The moneysmart website, run by the financial regulator ASIC, has some good info on this: https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/choosing-a-super-fund

      2. Most of the ‘going backwards’ in super of late has been because the sharemarket has gone backwards. Usually that’s just a short term thing and over the very long term it turns out well – remember that super is about saving for retirement, not saving for next year. But super doesn’t have to be in shares if that isn’t best for you. Most funds give you a choice of different assets and you need to make sure your money is invested in something that’s going to grow over the long term but is also something you are comfortable with. Again, the moneysmart website is worth a read: https://www.moneysmart.gov.au/superannuation-and-retirement/how-super-works/super-investment-options

      I hope that helps you take control.

      AD

      Reply

Post Comment