Retirement Living Standards Aren't So Bad........

I was challenging the dominant view on here that superannuation is good. In my view it is not good; it doesn't work, and there should be other options, rather than forcing poor people to 'invest' in super companies (that will just waste their money). I provided links to articles to support this position.

Superannuation is an unregulated industry. Financial planners etc. are NOT required to have any qualifications. Thankfully this is being looked into and financial planners will soon need qualifications.

Regardless, I really don't think it's nice to be insulted and bullied by certain people on here for offering an alternative position or an alternative way of thinking. And I notice these same people do the same thing to others. Stand up for yourselves people - don't let these bullies take over this site.

It is upsetting that bullying seems to be the accepted position on this website and this site seems dominated by the views of a few people (who put down others if they disagree)...

 

First of all, you were the one who threw the personal attack. Secondly, and more importantly, attacking an opinion IS NOT BULLYING, despite it being thrown around like words like 'love' and 'sorry' by people who dont understand the concept. Perhaps if you're feeling upset that your personal beliefs aren't agreed with, then an internet forum where differing views, which may be questioned or attacked, isnt for you.

Poor people aren't 'forced' to invest their super....its law that any person employed has the opportunity to choose a fund of their choice (whether they make an informed decision or not) , or set their own fund up (not recommended upon start of employment, more like when you have $200,000). Ultimately, the choice and onus is on the employee, no anyone else.

Financial planners without qualifications? I suppose they dont have PI insurance either?

pinkboy

 

Can you explain why you think superannuation and the surrounding industry isn't regulated? It's one of the more regulated sections of financial services around.

Same deal with financial planners not requiring any qualifications, that's blatantly not true at all.

Pages - Superannuation Legislation

http://download.asic.gov.au/media/1240766/rg146-published-26-september-2012.pdf

 

financial planners will soon require degrees as it is an industry that has gone unregulated and people without degrees or qualifications can work in it:

Degree of concern: Financial planners may quit if university education mandated

 

I'd rather a superfund look after my money than the government - they can hardly keep their own budget. I'd much rather a company who has to answer to it's share holders than the govt.

We are slowly coming to the first lot of people who will have had a superfund for 30yrs. Up until now there has not been a great amount of self funded retirees. It will certainly be interesing how things change over the next 20yrs

 

I am glad we set up a SMSF.

I think the private super fund industry still has a long way to go, fees can still be excessive.

Why is industry based superior in terms of performance? This is a big one?

 

I have no choice on which superfund to use because the fund we use is part of the enterprise bargaining agreement. Still much better than having the government in charge of it when it can be chopped and changed based on the latest poll of the week and when they are on the hunt for increasing revenue

 

Thanks @Westminster. I agree and thanks for having a similar and constructive view.

pinkboy

 

We have one too. In terms of ranking people who I want to look after my retirement funds in order of least to most

1. Govt: it's a body of people that seems to be very high in numbers of people for what they provide and wouldn't be competitive
2. Retail funds: too high commissions, fees and kickback which eat into the balance - especially in the early years funds could easily go backwards just due to fees. But they are improving to be competitive when all their clients moved to Industry funds
3. Industry funds: came amount (many via Unions) to **** off the money hungry Retail Funds and prove Superfunds could be run well and return better returns to clients.
4. Me/SMSF: I don't charge commissions or fees - just accountant etc and I chose how my money is spent.

 

It is interesting that the industry funds do provide the better returns and its been consistent for years.

SMSF without a doubt you have a total control its a clear winner.

 

That is why I like SMSF, we have control on what and where we invest.

 

Financial Planners have to have at least a Diploma in financial planning - It is not that difficult, and can be done in a few days, but it is much more difficult than the mortgage broking one for example.

And superannuation is hugely regulated.

 

Terry
I recall some 25 years ago, the super funds had a license to print money, ripped everyone off, clearly it had to change, but still room for improvement

 

Hi @Cinch

You might have no choice where your employer pays your contributions, but it might be worth exploring whether you are permitted to do partial rollovers to a SMSF every so often. I am aware of several people that do this... particularly those that work in the construction industry.

 

In terms of retail vs industry funds - it definitely used to be a case that retail funds had excessive fee's in the early days of the industry. With industry funds providing strong competition the field has levelled, with more inferences of issues actually being with industry.

Silly hijinx like manipulating unlisted asset values to 'guarantee' their returns, pocketing fund members franking credits etc.

 

I know all about retail and excessive fees in the early days, we got totally ripped off big time.

 

I'm happy relying on my industry fund.

Seem to give pretty good results and I don't have to worry about it. (If thing don't work out I can always blame someone else)

The last friend of mine who preached about the benefits of having control with a SMSF lost a pile of money on a really bad investment. . . . Control can mean losing!

 

Didn't have super as such, my contribution to my retirement was to build up a business over 25 years [this after my husband took early retirement], sell it and be responsible for my own future with the proceeds.

 

Of course absolutely you could lose money in SMSF, then you will have no one to blame but yourself.

 

Should real estate agents be required to hold a degree too? Currently they require a three unit Certificate of Registration which can be completed online in a matter of hours and able to sell you a $5m house or spruik a string of otp negatively geared junk that will send your finances into a downward spiral.