50-50 Chance of getting your Superannuation

[redwing]

Well, according to Clive

In defending his support for the freeze, the Palmer United Party leader said it was better to put the money in workers' pockets now, because the majority of Australians won't live to see their super paid out.

Will 50pc of Australians die before they can access their superannuation?

On a side note to the 50% issue; How are you getting it now..the employer pays your Super?

 

[cimbom]

That's incorrect. 75% of deaths in Australia are to people over 65 and the majority of people are retired by that age. People generally access their super first and when it runs out, go on to the penion. I looked it up last week

 

[Aaron_C]

He has a point because by the time most of us which are currently at 30 or so get to retirement age, the goal posts would probably have moved so much for superannuation age that we will never see it.

 

[D.T.]

67% of statistics are made up.

 

[Corey Batt]

Raises a strong debate on the value of investing in your super if you're under 30yrs old especially.

 

[mumbai]

67% of statistics are made up.

Nope, they are all accurate upto 96.8%

 

[Paul@PFI]

Well, according to Clive

Will 50pc of Australians die before they can access their superannuation?

On a side note to the 50% issue; How are you getting it now..the employer pays your Super?

Super doesn't evaporate when you die. Its important that death benefit nominations, estate planning etc all consider that super. Dead or alive it will assist family.

 

[Aaron_C]

Super doesn't evaporate when you die. Its important that death benefit nominations, estate planning etc all consider that super. Dead or alive it will assist family.

Perhaps but it's supposed to be income/nest egg for your retirement not something to form part of your estate.

 

[pasey25]

Nope, they are all accurate upto 96.8%

14% of people already know that.

 

[Paul@PFI]

Perhaps but it's supposed to be income/nest egg for your retirement not something to form part of your estate.

Since taxpayer aged 55-58 can commence a TTR pension and gain tax benefits this again makes no sense. It assumes they happily pay tax on their growing super balance until they die.

I would estimate 60-70% of taxpayers have NO IDEA about super strategies and just throw the doona over their heads and don't want to take advantage of the benefits available.
- They pay tax on super earnings from investments when they could pay zero % ($500K @ 10% = $7500pa in tax)
- They draw a salary after age 55-58 and don't salary sacrifice (Pay 15% tax v's 40% ?)
- They don't understand death / super benefits
- They don't know what investments they hold
- They choose the default investment option
- They avoid seeking advice to avoid a cost but that decision costs them.
- They don't consider death
- They fill out the death nomination with a foolish response such as 100% to my wife then 50/50 to my adult kids each....Kids will pay tax
- They don't fill out the death nomination at all and have no will
- They don't start a pension and so no reversionary pension either

 

[Rob G.]

Stupid referenced first post comment that misunderstands the first rule of investing ... delayed gratification.

The whole idea of super was to force employees to set money aside.

Why does this forum exist if not to accumulate for the future.

The acknowledged two greatest achievements causing Australia's sustained growth - floating the dollar and introducing compulsory super. Introduced by Paul Keating & Bernie Fraser. Every government since has been trying to claim the credit.

The current government has no financial credibility and yet it got voted in on a promise of responsible fiscal policy !

They complain about members accessing funds early tax-free and blowing it before going on the pernsion.

Instead they want to bypass super altogether ?

 

[red liverbird]

ABC's fact checkers have covered this claim for those interested...

http://www.abc.net.au/news/2014-09-09/clive-palmer-wrong-superannuation-access/5721968

 

[Paul@PFI]

Palmer just makes it all up.

The High Court ruled that super is a part of wages paid as an entitlement. Access is deferred by the preservation rules. The concept behind universal superannuation made by PJ Keating was the employees wont save for their own retirement. He had 50 years + of proven history that supported this fact. Pre 90 super was an appalling arrangement of employer funds that might vest after 18 years service and left workers with little. Today's super savings exceeds 1.8 trillion.....That's $1800 billion the Govt wont have to cough up. On top the Future Fund matches the shortfall in Gov't assets for super - Another 101 billion "banked"". And its all rising every year.

So it became compulsory so that employees reaching reservation age or pensionable age would have something other than a measly age pension to rely on.

Palmer should have encouraged the retention of the increased super rates. He has cost most aussies thousands of extra savings.

 

[Brady]

At this stage I have no plans for super, it will be the cream on the cake. Hope to have my cake and be eating it well before the cream is whipped.

 

[Aaron_C]

No I'd rather the money in my pocket before the Government taxes my super to its eyeballs when they run out of other revenue streams.

 

[Paul@PFI]

Stupid referenced first post comment that misunderstands the first rule of investing ... delayed gratification.

The whole idea of super was to force employees to set money aside.

Why does this forum exist if not to accumulate for the future.

The acknowledged two greatest achievements causing Australia's sustained growth - floating the dollar and introducing compulsory super. Introduced by Paul Keating & Bernie Fraser. Every government since has been trying to claim the credit.

The current government has no financial credibility and yet it got voted in on a promise of responsible fiscal policy !

They complain about members accessing funds early tax-free and blowing it before going on the pernsion.

Instead they want to bypass super altogether ?

Rob - I'm with you. A good Govt would encourage super savings subject only to a reasonable but high lifetime balance $1m per person indexed ? Higher caps, Deductions for a limited annual extra contribution etc.....However the days of massive lump sums may be wound back... Hopefully a mortgage payout will be excepted and a maximum annual pension...10%.

 

[redwing]

No I'd rather the money in my pocket before the Government taxes my super to its eyeballs when they run out of other revenue streams.

It'll never happen, they'll just take it over