Superannuation

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

19

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

3

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

23

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

68

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

13

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

26

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

36

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

17

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

12

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

4

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

6

Early super withdrawals edge closer to $36 billion

APRA published its early superannuation release data for the week ended 13 December, which revealed that only $152.9 million was withdrawn from Australia’s superannuation system, taking the total amount withdrawn early to $35.8 billion: According to APRA: Over the week to 13 December, superannuation funds made payments to 21,000 members, bringing the total number to

2

Superannuation system bleeds $36 billion from early withdrawals

APRA published its early superannuation release data for the week ended 6 December, which revealed that only $155.0 million was withdrawn from Australia’s superannuation system, taking the total amount withdrawn early to $35.6 billion: According to APRA: Over the week to 6 December, superannuation funds made payments to 21,000 members, bringing the total number to

0

Early superannuation withdrawals continue to slow

APRA has published its early superannuation release data for the week ended 29 November, which revealed that only $150.0 million was withdrawn from Australia’s superannuation system, taking the total amount withdrawn early to $35.5 billion: According to APRA: Over the week to 29 November, superannuation funds made payments to 21,000 members, bringing the total number

5

Self Managed or Self Mangled SMSF?

The allure of having complete control over your financial future is very compelling, and becomes even more so in turbulent market periods, like the one we have seen in 2020. So it is understandable that 2020’s volatile markets combined with the opaqueness of many large super funds could have left you wondering if you should

5

Aussies dump retail super funds

The Australian Prudential Regulatory Authority (APRA) has released its Quarterly superannuation performance statistics highlights for the September quarter. This report shows that total superannuation assets fell by 1.6% in the year to September: Superannuation assets totalled $2.9 trillion at the end of the September 2020 quarter. There was a 1.6 per cent reduction in the value

34

More support for using superannuation to buy property

I noted yesterday how calls were growing louder to allow first home buyers (FHBs) to use their superannuation savings to purchase property. This has arisen following the release last week of Treasury’s Retirement Income Review, which found that home owners enjoy superior retirement outcomes than non-home owners. The proposal has moved one step closer to

80

Defensive Paul Keating lies again on super

Following the Retirement Income Review’s scathing assessment of Australia’s compulsory superannuation system, the architect of the system, Paul Keating, too to ABC’s 7.30 Report to rubbish the Review’s findings with a bunch of lies and obfuscation: LEIGH SALES: Let me ask you address the point that we heard the Reserve Bank Governor make and it

15

Nick Gruen slams superannuation union ‘gravy train’

Professor Nicholas Gruen from Lateral Economics has called for Australia’s superannuation system to be overhauled, labelling it a union “gravy train”: “Unfortunately unions have turned the system into a gravy train for the retirement of their own officials onto boards,” Professor Gruen said. “But if they could see the larger game, they’d end up with

104

Calls grow to allow using super to buy property

Calls are growing to allow first home buyers (FHBs) to access their superannuation savings to purchase a home after the Treasury’s Retirement Income Review found that home owners have far better retirement outcomes than non-home owners. A group of Liberal MPs, led by Tim Wilson, are leading the calls: Mr Wilson… told The Age and

22

Universal pension better than compulsory superannuation

According to The Australian’s Judith Sloan, Australia’s current retirement income system is a costly one that contains a range of inequities. One alternative would be to combine a universal pension with voluntary savings, which is essentially the New Zealand model. Sloan argues that such a model would likely cost taxpayers less than the present system,

9

12% superannuation would wreck the federal budget

On Friday, the federal government released Treasury’s 600-page Retirement Income Review Final Report, which highlighted in great detail why lifting the superannuation guarantee (SG) from 9.5% would be unambiguously bad policy. First, the Review notes that the federal budget would be plunged further into deficit, since any cost savings for the Aged Pension would be

1

Early super withdrawals slow further

APRA has published its early superannuation release data for the week ended 15 November, which revealed that only $151.4 million was withdrawn from Australia’s superannuation system, taking the total amount withdrawn early to $35.1 billion: According to APRA: Over the week to 15 November, superannuation funds made payments to 21,000 members, bringing the total number

17

12% compulsory superannuation would lower lifetime incomes

The full report of the review commissioned by the federal government into retirement income will be released on 20 November, but its key findings have been made known. Importantly, the report suggests that lifting the compulsory superannuation rate to 12% could disadvantage low-income earners and reduce workers’ lifetime incomes: “A rate of compulsory superannuation that