Paul Keating’s super lies debunked again

Former Prime Minister and architect of Australia’s compulsory superannuation system, Paul Keating, headlined Alan Kohler’s four-part special on the future of retirement, aired on ABC’s 7.30 Report. In this report, Paul Keating erroneously claimed that Australia’s ageing population would make the current Aged Pension system unsustainable without increases in the compulsory superannuation guarantee (SG): PAUL


Which model of financial adviser fees is right for me?

The question of financial adviser fees and the method charged has long been deliberated over, both internally in the industry, and from a client perspective. Like many professional services, the immediate ‘return on investment’ from financial advice can be challenging to quantify and validate. But having a good understanding of how you are charged can


Lifting compulsory super would worsen gender gap

Professor Deborah Ralston was a member of the Australian Treasury’s Retirement Income Review, which released its final report late last year. Professor Ralston has published an article in The Conversation warning that lifting the compulsory superannuation guarantee (SG) to 12% would worsen the wealth imbalance between men and women by widening the retirement income gap:


Industry super spits dummy over biased modelling

The lobby group for 15 Australian industry superannuation funds, Industry Super Australia (ISA), has taken aim at the federal government’s Retirement Income Review, which it claims was inherently biased in cautioning against lifting the superannuation guarantee (SG) above 9.5%: “The troubling conclusion is that the review was rigged to get the outcome some government MPs


Industry super wastes member money on propaganda campaign

Industry Super Australia (ISA) is preparing to ramp up its media campaign over what it claims is the federal government’s reluctance to proceed with the legislated increase in the superannuation guarantee (SG) to 12%. Superannuation Minister Janet Hume has accused the ISA of “self-interest”, claiming that the super industry stands to receive an additional $2.5


Superannuation funds riddled with junk insurance

Michael Abrahamsson of Flinders Private Wealth says there has been a sharp increase in premiums for insurance coverage provided within superannuation funds, particularly income protection insurance. Xavier O’Halloran of Super Consumers Australia in turn warns that there is a growing trend for insurance policies within super to feature more restrictions and exclusions when making claims,


Don’t pour super fuel on housing bonfire

Liberal MP Tim Wilson contends that Australians should be able to access their superannuation to pay a housing deposit. However, the Association of Superannuation Funds of Australia (ASFA) released a report yesterday staunchly opposing the move, arguing that it “would make a bad situation catastrophic” by putting additional upward pressure on house prices and adversely


Coalition attacks Paul Keating’s and Labor’s super lies

The Morrison Government has taken direct aim at Paul Keating’s and Labor’s unrelenting scare campaign over superannuation, whereby they claim that not lifting the superannuation guarantee (SG) to 12% will leave people destitute in retirement, forcing people to sell their homes and unable to afford their own coffin: “Paul Keating and Labor have seen the


Make retirees spend their super

Superannuation Minister Jane Hume has recently stated that super funds should be forced to offer new retirement income products so that retirees use more of their super rather than save it. According to The AFR, Treasurer Josh Frydenberg will echo these comments when he speaks to a retirement income forum today, saying that people should


Is Australia’s superannuation system world’s “most successful”?

A new study by the global Thinking Ahead Institute has ranked Australia’s compulsory superannuation system the world’s most successful following 11.3% compound growth in assets under management over the 20 years to 2020: The most successful pensions market can be found in Australia, featuring 20-year pension asset growth of 11.3% per annum, in USD terms.


Coalition MPs dump superannuation fuel on housing bonfire

Victorian Coalition MP, Tim Wilson, has launched a “Home First Super Second” campaign, which is calling for first home buyers (FHBs) to be permitted to access their funds for a housing deposit before being required to save it as superannuation: Young Australians are struggling to save enough for a first home deposit. They have savings


SMSFs are leveraging into Aussie property

Back in 2016, David Murray –  the chairman of the Financial System Inquiry (FSI) – recommended self-managed superannuation funds (SMSFs) be banned from borrowing to invest because of risks to the financial system: “Superannuation funds should not be leveraged, including SMSFs, because leverage magnifies risk. If the system is unleveraged, then if asset prices rise,


ASFA admits superannuation system is unfair

The superannuation industry has displayed a rare glimpse of honestly, with the Association of Superannuation Funds of Australia (ASFA) – the peak policy, research and advocacy group for superannuation funds – admitting that Australia’s superannuation system is grossly unfair in that it provides the greatest concessions to those that need it least: high income earners.


Paul Keating spins more superannuation lies

Former Treasurer and Prime Minister Paul Keating continues to lobby for his super industry mates over working Australians. Yesterday, Keating gave a speech to the Association of Superannuation Funds of Australia (ASFA) – the peak policy, research and advocacy group for superannuation funds – where he lashed out at the Reserve Bank of Australia for


ACOSS: Superannuation system grossly unfair

As we know, the superannuation industry has been lobbying ferociously for the federal government to proceed with the legislated increase in the superannuation guarantee (SG) to 12% from 9.5% currently. The industry argues that failure to lift the SG would lower the living standards of Australian workers by lowering their retirement nest eggs. The industry


Zen and the art of financial advice

How do you know you need advice? Seeking advice can be a challenging endeavour for most people. It is not so much that advice is hard to find, but more so that the abundance of information out there offers so much but under it may lie hidden intentions but more on this later. Here are


Meet Paul Keating: defender of super rorts

Janet Albrechtsen has done a terrific job today tearing apart Paul Keating’s anti-working class calls to lift the superannuation guarantee (SG) to 12%, which would inevitably lower workers’ take-home wages and increase inequality: The sell-out is laid bare every time the former prime minister enters an important public debate about modernising an ageing superannuation system


It’s time to raid superannuation nest eggs

Superannuation minister, Jane Hume, has urged superannuation fund members to draw down their principal to fund their retirements, rather than relying solely on the cashflow from their investment returns (i.e. interest and dividends): She said the Retirement Income Review found that while Australians are stopping work with more savings than ever, they are living extraordinarily


Greedy superannuation industry demands taxpayer pork

Australia’s rent-seeking superannuation industry is talking its book again, this time calling on the federal government to deposit up to $5,000 into the bank accounts of low-income earners: The Australian Institute of Superannuation Trustees (AIST) wants the government to top up the retirement accounts of low-income earners who withdrew money from their super to help


Superannuation is a tax dodge for the rich

AFR senior correspondent, Aaron Patrick, has taken aim at Paul Keating’s compulsory superannuation system, claiming it “has evolved into a state-sponsored tax shelter for non-self-made millionaires”: Super is stacked in favour of the rich… men like former prime minister Paul Keating who spent their careers in high-paid careers now benefit from super rules so loose


Scrap superannuation for a universal basic pension

National Seniors Australia (NSA) has called on the federal government to implement a universal pension scheme that isn’t means tested: National Seniors Australia chief advocate Ian Henschke wants a universal pension scheme that isn’t means tested. “Review after review complains about older people failing to spend down their capital; they don’t blame the system, they


Superannuation steals from the pension

Industry Super Australia (ISA) continues to lobby the federal government to increase the superannuation guarantee (SG), arguing that if the super rate increase was abandoned, it would “heap pressure on the pension”: ISA said it was vital the legislated increases in the superannuation guarantee – from 9.5 per cent to 12 per cent of wages


Superannuation guarantee to rise to 10%

The federal government is considering a range of options regarding superannuation ahead of the Budget in May. The super guarantee (SG) is slated to rise to 10% on 1 July, and the government is said to be looking at leaving at this level. Other options that are under consideration include allowing workers to choose between


More proof 12% superannuation would lower workers’ pay

Workers are paying between 71% and 100% of increases to the superannuation guarantee (SG) through lower take-home wages. This is according to research commissioned by the federal government’s Retirement Income Review, with the research being undertaken by two Australian National University economists. Release of the research comes as the Morrison Government is deciding whether to