Is it me

[Guest]

Or is supperanuation a massive massive rip off, first of all they opt you into insurance which for me way $8 per week, now they didn't even ask me if i wanted insurance, I rang them to cancel and it seems that the government has decided that people are under insured so decided to let super funds take out what they want without even asking, so its on by default until you cancel it, then we have fees which are $1.25 which seems nothing but look closer and what did I get for my $1.25, well last year I made gains of say $60, so I'm actually $5 out of pocket plus the insurance I unwillingly paid to my super was actually down like $200 in 1 year on about $2000, so whats the actual point I'm not a accountant or anything but I can read and what I'm reading about the gains in the past few years isn't promising at all, then i read they want you to contribute extra into this system, it seems madness I would have earned more in a high interest account, but I can't I'm forced into this **** system. All that is just with 1 super, my gf has had 3 jobs so thats 3 supers all charging fees, consolidate them and lose more to fees I don't know how they get away with it loads of people who just don't give a toss are losing hand over fist.

Also what about those of us who work here but won't stay for good, lets say i stay 10 years and put in $30000 then leave for home, that 30000 is just going to get eaten up by fees for the next 25yrs and i can't do a thing about it.

 

Id like to hear some good about super if I'm wrong, I mean I don't see me losing the 9% as employers wouldn't pay that if there was no scene but it needs not be mandatory.

[VERYSTORMY]

Correct. The only people that do well from Super are the funds.

[Gbye grey sky]

My wife has a Super fund from her time when she was last in Oz working in the 90s. She gets an annual statement and the fund is growing annually. Despite being only a modest amount it is not being eaten up by charges at all. As investments go it seems very favourable though there is no such thing as a sure bet. Clearly receiving it free of tax when you retire in Oz is a major plus and infinitely better than the UK. It is gradually becoming mandatory in the UK but we are decades behind Australia in this regard IMO.

[BrownEyedGal]

Ah

I feel your pain. I totally did not understand superannuation when I came over, so got stuck with a company charging for every darn thing. It takes a while for new entrants to get their head around all these government fees. I tried to cancel my original one and hoops I had to jump through were amazing. Even now money still gets siphoned off via that company.

 

There's no broker system as far as I can tell who is independent enough to give you advice, like the UK. I wanted to transfer my UK pension to it but am afraid about transferring back if/when I leave either as a PR or Citizen.

 

It all muddles my brain!~

[Parley]

Super is fantastic for most people.

If you start young and contribute consistently (I usually try to match what my employer puts in) by salary sacrifice.

You don't really feel it as it comes out pre-tax.

 

I'll just say I have quite a lot and very happy to have it there.

[MicheleW]

I have recently done a major review of my superannuation and I was very pleasantly surprised in how well it is doing. The fees aren't really that big given the return on investment and I can see a very clear path as to what I need to contribute to allow me to retire comfortably. Given that I spent nearly 13 years out of Australia where I was not contributing into super at all, I am actually really happy with it all.

[Peach]

Really happy with my super too. Long term sickness cover, death in service benefits. I'm in control over the range of investments.

[Guest Guest55385]

Or is supperanuation a massive massive rip off, first of all they opt you into insurance which for me way $8 per week, now they didn't even ask me if i wanted insurance, I rang them to cancel and it seems that the government has decided that people are under insured so decided to let super funds take out what they want without even asking, so its on by default until you cancel it, then we have fees which are $1.25 which seems nothing but look closer and what did I get for my $1.25, well last year I made gains of say $60, so I'm actually $5 out of pocket plus the insurance I unwillingly paid to my super was actually down like $200 in 1 year on about $2000, so whats the actual point I'm not a accountant or anything but I can read and what I'm reading about the gains in the past few years isn't promising at all, then i read they want you to contribute extra into this system, it seems madness I would have earned more in a high interest account, but I can't I'm forced into this **** system. All that is just with 1 super, my gf has had 3 jobs so thats 3 supers all charging fees, consolidate them and lose more to fees I don't know how they get away with it loads of people who just don't give a toss are losing hand over fist.

Also what about those of us who work here but won't stay for good, lets say i stay 10 years and put in $30000 then leave for home, that 30000 is just going to get eaten up by fees for the next 25yrs and i can't do a thing about it.

 

Id like to hear some good about super if I'm wrong, I mean I don't see me losing the 9% as employers wouldn't pay that if there was no scene but it needs not be mandatory.

 

Yes a huge con. If you're on a temporary visa, you can opt (once you've left the country) to remove super HOWEVER you have to pay approximately 40% of it back in tax.

[Gbye grey sky]

Yes a huge con. If you're on a temporary visa, you can opt (once you've left the country) to remove super HOWEVER you have to pay approximately 40% of it back in tax.

 

I don't know about the percentages but why would you expect it to be tax-free income?

[flag of convenience]

A double edged sword. Can be tax effective. Those nearing retirement a place to park money as well. Besides the rip off fees there is the possibility that come a banking crash the government would use the fund to keep them afloat.

 

Still ok when stock market doing well not so good when markets heading south. Went backwards a couple of years ago which cost me a considerable sum.

[flag of convenience]

Yes a huge con. If you're on a temporary visa, you can opt (once you've left the country) to remove super HOWEVER you have to pay approximately 40% of it back in tax.

 

Pretty normal tax rate I would have thought.

[Echidna66]

Pretty normal tax rate I would have thought.

 

Just another Australian Govt rip off..Theybare talking about increasing the super age of entitlement for some..they are traitors, thieves just like any Govt..they are not your friend and cannot be trusted..

[Parley]

I think you have trust issues tbh.

[Echidna66]

As I have said before you are a Tonys dream citizen..Bahhaa, Bahhaa..

[Parley]

Thank you.

[Echidna66]

well that ok

[NicF]

Just another Australian Govt rip off..Theybare talking about increasing the super age of entitlement for some..they are traitors, thieves just like any Govt..they are not your friend and cannot be trusted..

 

I'm sure how it can be a government rip off. In fact quite the opposite. You get to put money in your super at lower tax rates than you would normally pay on your income and you get paid the money out tax free. The money in the super doesn't go to the government and the charges applied aren't applied by the government. The whole point of the compulsory superannuation is to ensure people have enough money to live on when they retire, which seems a reasonable aim to me. Far better than expecting the government to support you in old age.

 

There are some super funds that make a lot of money from running super funds and applying high charges but this is not the fault of the government. If you don't like the super fund you have find a better one that offers a better deal and use that instead.

[Echidna66]

Bahaaa..You deserve an extra a

[Nearlythere1]

Hi,

I'm quite confused by all this. I haven't moved to Aus yet, and am still wondering whether or not to transfer my UK pension over to a Super. There seems to be greatly differing views on this, and quite frankly, I don't know where to start picking through it all.. :confused:

[Gbye grey sky]

Hi,

I'm quite confused by all this. I haven't moved to Aus yet, and am still wondering whether or not to transfer my UK pension over to a Super. There seems to be greatly differing views on this, and quite frankly, I don't know where to start picking through it all.. :confused:

 

My recommendation is that you seek some advice for your own particular circumstances. The most crucial element is where you expect to be in your retirement and if that is unlikely to be Oz then you definitely do not want to consider transferring. If you definitely will retire in Oz it is a good idea to weigh up the pros and cons.

[Celt Down Under]

As a retired person, I am more than happy with my Super. After working here for 30 years, and contributing to Super for about 25 years, we are well ahead. Both myself and Mrs CDU have separate Super, and live very well off it. I retired towards the end of 2011, and have not touched mine yet, but we still live the good life off Mrs CDU's, plus investment earnings. I will have to start taking my Super before January 1st, or I will be hit with extra charges brought in at the last budget regarding taxes on Super earnings. If I start taking the money before January 1st, "Grandfathering" rules apply and it is left as it is at present, with no tax applied. Anyone with doubts about it should talk to a financial advisor who can let them know how they stand on it.

As well as the above, I will be entitled to a UK pension from next February for the 15 years that I worked there. Good hey. :jiggy:

[Nearlythere1]

My recommendation is that you seek some advice for your own particular circumstances. The most crucial element is where you expect to be in your retirement and if that is unlikely to be Oz then you definitely do not want to consider transferring. If you definitely will retire in Oz it is a good idea to weigh up the pros and cons.

 

I intend to be in Australia in retirement. Problem is, I have a Civil service pension, and all the Pension transfer companies obviously say "get your pension out quick", well that might have something to do with the large % commission they get if I do. So, I'm a bit sceptical of their advice. Do independent financial advisers usually have enough international knowledge to give good balanced advice on the pros and cons of both UK and AUS? Along with the knowledge of the best Supers in Aus against returns when leaving it in the UK? :confused:

[NicF]

I intend to be in Australia in retirement. Problem is, I have a Civil service pension, and all the Pension transfer companies obviously say "get your pension out quick", well that might have something to do with the large % commission they get if I do. So, I'm a bit sceptical of their advice. Do independent financial advisers usually have enough international knowledge to give good balanced advice on the pros and cons of both UK and AUS? Along with the knowledge of the best Supers in Aus against returns when leaving it in the UK? :confused:

 

There are financial advisers around with knowledge of both. If you pay for the advice you should get impartial advice based on your circumstances. Ultimately though the decision has to be yours based in the information they give you. We have been down that path but I'm not sure I would recommend the people we used. In the end we decided to leave everything where it is as we are not sure yet where we will retire.

[NickyNook]

Super is wonderful.

 

We have a lovely lump sum of money (well over $1m) in our names that cost us nothing and that we draw a tax-free pension from.

 

Don't know how anyone could complain about that.

 

If your super fund charges high fees, do some research and change super funds. If you don't like the performance of your super fund change where the money is invested. If you believe it will perform better in a bank, there will be an option to move the money into cash or similar.

 

It's your money and you can invest it where you want it invested. Quit whinging and be a bit pro-active. Super is a gift.

[Nearlythere1]

As a retired person, I am more than happy with my Super. After working here for 30 years, and contributing to Super for about 25 years, we are well ahead. Both myself and Mrs CDU have separate Super, and live very well off it. I retired towards the end of 2011, and have not touched mine yet, but we still live the good life off Mrs CDU's, plus investment earnings. I will have to start taking my Super before January 1st, or I will be hit with extra charges brought in at the last budget regarding taxes on Super earnings. If I start taking the money before January 1st, "Grandfathering" rules apply and it is left as it is at present, with no tax applied. Anyone with doubts about it should talk to a financial advisor who can let them know how they stand on it.

As well as the above, I will be entitled to a UK pension from next February for the 15 years that I worked there. Good hey. :jiggy:

 

Sounds great, though I thought you needed around 30-35 years of contributions to get UK state pension? Or is it a UK private pension scheme?:confused: