Superannuation cuts to fuel the investments in NG property ?

I see what you are saying...it would be handy if I get to $1m in Super.

Just a hard slog.

I reckon I am 400k plus now....another 11 years to go before I can even access it. So yes hopefully with contributions and growth I get there.

 

Most people wont get close because most of Australia lives at an existence level. Someone earning the average wage and having that grow should get pretty close. Remember that over 75% of the population live on below the average wage which is only 88k as it stands.

For someone earning the average wage from the age of 25, with 2.5% wage growth (so no big promotions) and 5% super growth (very conservative) would expect to have 3.15m in their superannuation by the age of 75 when they're expected to retire (by the time they get there it will probably be 85).

Now obviously in the current economy that's a very unrealistic outcome as most people will be very lucky to even be full time employed and earning average wages by 30 but that at least is the plan.

Now obviously the amount required to survive by that point is going to be a lot higher so that balance might not be what it sounds like.

 

An article on the other changes to super from this year's budget - not too bad a trade off: Linky

 

Maybe the 1.6m limit should be indexed to inflation.

Alan Kohler had a really interesting article in Business Spectator (now swallowed up by The Australian) today which pointed out that essentially the Libs and the ALP super policy was very similar (ie. one based on asset value, the other on income...).

I can see both Kierank's and Wogitalia's points, however, I think any party vying for election is going to grab some low hanging fruit in the form of giving a bit of a beating to a low taxed investment medium.

And they did.

The rules are going to change, and this should be factored into the risk profile of such an investment.

Why not gear your super fund to the eyeballs on an all in bet to buy Sydney Airport (will it ever go broke?) even if it's also geared to the eyeballs, and surely, after all is said and done, you'll have enough to retire comfortably... (or at least 1.6mil)

And if not, put the price up on those pesky car parkers and airlines (who's margins are far too high).

They are just cost centres, after all...