Last evening, a uni student, early twenties and a casual worker, showed me a letter from his superannuation provider informing him that it had closed his account because the balance is now zero.
What has been happening is that the fund's administration and other fees and government taxes have eroded his savings. He has been going backwards faster than forward. Now it is all gone in fees and taxes. Sucked dry.
In its letter, the superannuation provider blamed the government, which had "introduced legislation to stop the 'Member Protection Rebate' which previously allowed super funds to rebate fees on small balances (under $1,000) back to members". Of course the super provider sees itself as blameless. However both the fund and the government 'suck', to be blunt.
The student has had to shrug his shoulders and cop it.
Just wondering how young people, many of whom work casual to put food on the table can be expected to build their stake in superannuation when government and the funds are taking such advantage of them.
To my way of thinking it is unconscionable conduct.
Not criticising any particular federal government. However one could be excused for making a comparison with the fabulous superannuation entitlements enjoyed by politicians. In recent years a number of young career politicians have retired on fully indexed superannuation that is higher than the full-time salary many workers will achieve at the end of their working life.
spida said
08:39 AM Aug 22, 2014
I only worked in Aus for 4 years before retiring and decided to get my super out as soon as I could as I too was watching the fees eating in to it.
Bryan said
08:46 AM Aug 22, 2014
It doesn't matter which Government. They are all on the same gravy train. At election time the gravy train stops at the station, some passenger get off, some get on and the gravy train continues on its journey until the next election. (By courtesy of Bishop Desmond Tutu - not exactly his words but the same meaning).
The problem is us, we let them get away with it. But that's another story.
-- Edited by Bryan on Friday 22nd of August 2014 08:47:05 AM
Vic41 said
10:56 AM Aug 22, 2014
That's disgusting John, even if worked were allowed for their super to be put into a fixed roll over term deposit of some kind with limitations on when they could draw on it they would be better off.
My last super statement before I retired said I had made 2% on my super in my last financial statement, the rest went in admin and other fees. It's scandalous! If I had it in a fixed roll over term deposit I would have been streets ahead.
The outcome of leadership changes either in party or during elections always make fat cats at the taxpayers expenses.
The last PM change resulted in two highly paid ex PM's (one as the result of a leadership spill) going out on lucrative pensions and benefits, and the incoming new government PM assured of one when he goes. This is not counting the other MP's some of whom toss the job in as soon as they qualify and don't even have the decency to finish their elected term, making for an expensive bi election.
No wonder the country is going broke.....oh hang on......screw the low paid and pensioners, everything will be fine then.
2foot6 said
12:07 PM Aug 22, 2014
I have been in the same situation,where the fees eroded the funds until there almost gone.Perhaps soon we will have a politician that is honest and cares about the people of Australia,making sure there is enough funds for health,care and a fair pension by changing the laws and rules that work against people ,for the betterment of the companies that rip the due funds of the people that paid taxes over their working life.A caring politician that doesn't look after himself or his peers,but really looks after the Australian people,and I hope Santa will bring me a bigger present this Christmas. Cheers Peter.
D and D said
12:54 PM Aug 22, 2014
Join an industry super fund ... no fees.
Cloak said
02:43 PM Aug 22, 2014
I made my own Super and eliminated all the insurances. There are a few small fees but it still makes me $2K each month.
MLC from NAB is the investor.
Aus-Kiwi said
11:02 PM Aug 23, 2014
It works big time on retirement !! IF your in the right fund !!
KeenTravellers said
01:14 AM Aug 24, 2014
I wish it was true that "somewhere someday some poli" would look after the Average Jo Blow...
Seriously - I dont believe there will EVER be a Poli on any side whom will get rid of the descrimination of
(Fedral, State even local Government) entitlements over the everyday Ordinary Working Class Australian & or
Pensioner. There are Rules for them - and rules for the rest of us..thats descrimination
If you add up the "mega millions" paid by the Australian Tax payer - for every past politican still alive (and there is hundreds of them)
(whether they where neglegent in their duties or not) they ALL STILL receiving Tax payer funds
(Super - paid offices - secretaries - government concessions - numbers of flights each year- security etc etc...) Mega Millions
And All those current payments - not based on CPI like the rest of us - oh no - when Judges get a pay rise so do they... what a joke!...
If your a company director and you are neglegent in your duties then they come after you hard... Alan Bond, Christopher Scase etc
Now Think about us - the working or ex working class Australians who worked every day & paid taxes all your life.
You had less tax concessions, than them when did work - yet they paid less tax....
You save every cent you get - to spend on Bills - Living and if you lucky some pleasure. They had a governement expense
BUT - You leave a job - your super and everything else - stops. Theirs continues its merry way increasing each year
With what we pay these past polis in one single year - They could fund the pension forever.
And they want to cut pensions & benefits...WT?
Seriously what Poli is going to come into office - and then cut his and all the rest on both sides of the house
"benefits & payments & entilements.. They would literally shoot him...lol
That would be thinking like the real world... and they dont live in it...
Ok I will get off my box..
Cheers
KT
johnq said
03:20 AM Aug 24, 2014
Thanks everyone for the replies. Some suggestions too that I will pass on.
Wombat 280 said
08:36 PM Aug 24, 2014
Throwing cash into a super fund only makes the fund manager rich Unless you have been in a fund for 20 years or more and still have 20 years work in you there will never be enough to live off when you retire .
I have no problem with high income earners getting the big payout as I can't recall every been paid by a poor person . You will only get out what you put in and when you look at the low interest rates and the many years your super policy makes nothing ( and there are many of those ) you would be better off in the bank at 3 % over the 40 year life of your investment . Regardless of the yearly return the fees keeping rolling on and your nest egg soon becomes scrambled egg .
There is no golden hand sake with a personal super fund unless your the manger of others money , this is why the NAB CEO gets a $3 million P/A package plus bonuses .
Sorry, a reality check clearly shows anyone now under 50 will still need welfare payments even after self and employer contributions over your working life .
A switched on economist can demonstrate within minutes that the current pension of $500 in forty years from now will be $3000 but will buy less than you can now .
Last evening, a uni student, early twenties and a casual worker, showed me a letter from his superannuation provider informing him that it had closed his account because the balance is now zero.
What has been happening is that the fund's administration and other fees and government taxes have eroded his savings. He has been going backwards faster than forward. Now it is all gone in fees and taxes. Sucked dry.
In its letter, the superannuation provider blamed the government, which had "introduced legislation to stop the 'Member Protection Rebate' which previously allowed super funds to rebate fees on small balances (under $1,000) back to members". Of course the super provider sees itself as blameless. However both the fund and the government 'suck', to be blunt.
The student has had to shrug his shoulders and cop it.
Just wondering how young people, many of whom work casual to put food on the table can be expected to build their stake in superannuation when government and the funds are taking such advantage of them.
To my way of thinking it is unconscionable conduct.
Not criticising any particular federal government. However one could be excused for making a comparison with the fabulous superannuation entitlements enjoyed by politicians. In recent years a number of young career politicians have retired on fully indexed superannuation that is higher than the full-time salary many workers will achieve at the end of their working life.
It doesn't matter which Government. They are all on the same gravy train. At election time the gravy train stops at the station, some passenger get off, some get on and the gravy train continues on its journey until the next election. (By courtesy of Bishop Desmond Tutu - not exactly his words but the same meaning).
The problem is us, we let them get away with it. But that's another story.
-- Edited by Bryan on Friday 22nd of August 2014 08:47:05 AM
That's disgusting John, even if worked were allowed for their super to be put into a fixed roll over term deposit of some kind with limitations on when they could draw on it they would be better off.
My last super statement before I retired said I had made 2% on my super in my last financial statement, the rest went in admin and other fees. It's scandalous! If I had it in a fixed roll over term deposit I would have been streets ahead.
The outcome of leadership changes either in party or during elections always make fat cats at the taxpayers expenses.
The last PM change resulted in two highly paid ex PM's (one as the result of a leadership spill) going out on lucrative pensions and benefits, and the incoming new government PM assured of one when he goes. This is not counting the other MP's some of whom toss the job in as soon as they qualify and don't even have the decency to finish their elected term, making for an expensive bi election.
No wonder the country is going broke.....oh hang on......screw the low paid and pensioners, everything will be fine then.
I have been in the same situation,where the fees eroded the funds until there almost gone.Perhaps soon we will have a politician that is honest and cares about the people of Australia,making sure there is enough funds for health,care and a fair pension by changing the laws and rules that work against people ,for the betterment of the companies that rip the due funds of the people that paid taxes over their working life.A caring politician that doesn't look after himself or his peers,but really looks after the Australian people,and I hope Santa will bring me a bigger present this Christmas. Cheers Peter.
MLC from NAB is the investor.
Seriously - I dont believe there will EVER be a Poli on any side whom will get rid of the descrimination of
(Fedral, State even local Government) entitlements over the everyday Ordinary Working Class Australian & or
Pensioner. There are Rules for them - and rules for the rest of us..thats descrimination
If you add up the "mega millions" paid by the Australian Tax payer - for every past politican still alive (and there is hundreds of them)
(whether they where neglegent in their duties or not) they ALL STILL receiving Tax payer funds
(Super - paid offices - secretaries - government concessions - numbers of flights each year- security etc etc...) Mega Millions
And All those current payments - not based on CPI like the rest of us - oh no - when Judges get a pay rise so do they... what a joke!...
If your a company director and you are neglegent in your duties then they come after you hard... Alan Bond, Christopher Scase etc
Now Think about us - the working or ex working class Australians who worked every day & paid taxes all your life.
You had less tax concessions, than them when did work - yet they paid less tax....
You save every cent you get - to spend on Bills - Living and if you lucky some pleasure. They had a governement expense
BUT - You leave a job - your super and everything else - stops. Theirs continues its merry way increasing each year
With what we pay these past polis in one single year - They could fund the pension forever.
And they want to cut pensions & benefits...WT?
Seriously what Poli is going to come into office - and then cut his and all the rest on both sides of the house
"benefits & payments & entilements.. They would literally shoot him...lol
That would be thinking like the real world... and they dont live in it...
Ok I will get off my box..
Cheers
KT
I have no problem with high income earners getting the big payout as I can't recall every been paid by a poor person . You will only get out what you put in and when you look at the low interest rates and the many years your super policy makes nothing ( and there are many of those ) you would be better off in the bank at 3 % over the 40 year life of your investment . Regardless of the yearly return the fees keeping rolling on and your nest egg soon becomes scrambled egg .
There is no golden hand sake with a personal super fund unless your the manger of others money , this is why the NAB CEO gets a $3 million P/A package plus bonuses .
Sorry, a reality check clearly shows anyone now under 50 will still need welfare payments even after self and employer contributions over your working life .
A switched on economist can demonstrate within minutes that the current pension of $500 in forty years from now will be $3000 but will buy less than you can now .