Superannuation

13

Australian Treasury: Super increase will lower wages

Yesterday, Treasury Secretary Steven Kennedy told a Senate inquiry that the legislated increases in the compulsory superannuation guarantee (SG) from 9.5% to 12% will push down real wage growth. Kennedy stated that real wage growth would be 0.4% higher per legislated 0.5% increase in the SG, which begins in July and ends in mid-2026: “Roughly

10

SMSFs leverage into property bonfire

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,

11

Bloated superannuation sector to expand following Budget

Australia’s bloated superannuation sector was a major beneficiary of last night’s federal budget. Not only did the budget keep the scheduled rise in the superannuation guarantee (SG) to 12% in place, but it also: removed the current $450 per month minimum income threshold for the superannuation guarantee; removed the work test for older Australians to

15

Morrison bribes seniors with new superannuation lurks

The 2017 Federal Budget included the below measure aimed at encouraging seniors to downsize from their large homes to free-up housing for Australian families: Tomorrow night’s Federal Budget will reportedly extend the eligibility to the scheme to people aged 60. The Budget will also reportedly abolish the work test that applies to superannuation contributions made

14

Australia’s superannuation system worsens gender gap

The Australia Institute (TAI) has released a new study arguing that Australia’s compulsory superannuation system is worsening the gender gap: [Australian] men get 72 per cent of the $41 billion per year in superannuation tax concessions. Taxation statistics show that the average (mean) superannuation balance at the end of 2017-18 was $153,300 for males and

2

Paul Keating’s superannuation lies mushroom

The AFR’s Michael Roddan has done a terrific job exposing the many superannuation lies spouted by Paul Keating. First, Roddan attacks Keating’s claim that the Morrison Government’s early superannuation release policy will cost young people up to $500,000 in retirement savings: In a recent four-night ABC series, Keating criticised the early release scheme for causing

4

Early super release used legitimately by households to pay bills

The Morrison Government’s early release of superannuation policy allowed people in financial hardship to withdraw up to $20,000 of their superannuation savings last calendar year. Sceptics of this scheme claimed the majority of these withdrawals were wasted on things like gambling, alcohol and takeaway food rather than essential household spending. Today, the Australian Bureau of

20

Coalition green lights compulsory super increase

The Australian reports that the upcoming federal budget will not include a measure to pause the proposed increase in the superannuation guarantee (SG). It will also not contain measures to allow first-home buyers (FHB) early access to their super, as some Coalition MPs have been calling for, following strong opposition from Prime Minister Scott Morrison:

10

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

9

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

7

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:

7

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

1

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

3

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,

13

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

3

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

31

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

10

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.

75

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

16

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,

8

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.

10

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