Quote:
Originally Posted by BRISSYBOUND
Why are people p***ed off, 9% of basic is three times the best an employer has ever put into a pension for me and it was not compulsory.Are pensions self managed in Oz or do you just pay into funds you can pick and change and then leave it to the experts.Fred
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They were ticked off at getting nothing from the budget which is why they protested. Remember that we dont have a universal old age pension so super is pretty much at the whim of wherever it has been invested and it takes a lot of contributing to get your lump sum up to a level that is capable of supporting you through the ups and downs of the economic cycle for 30 years or however long you have after you retire. Just the compulsory contribution is not going to do it. Some folk are having to go back to work because their pension has been so diminished and yet they are not eligible for the govt pension - reverse mortgages are an increasing phenomenon too as people have to use the equity in their homes just to survive. Self funded retirees get none of the benefits of free medical, prescriptions, travel etc.
Funds can be either self managed or managed by the super company's specialists. You can pick and choose who you go with these days. Sadly the days of the gold plated super schemes - like the public service schemes - are long gone and pretty much all of them are subject to the vagaries of the market. If you are just beginning the process then obviously you have a better chance at taking the riskier wealth creating options but the older you get the more anxious you get!!!
