66
submitted 7 months ago by BrikoX@lemmy.zip to c/australia@aussie.zone

Research by the Association of Superannuation Funds of Australia casts doubt on the Coalition’s plan

you are viewing a single comment's thread
view the rest of the comments
[-] theroff@aussie.zone 6 points 7 months ago* (last edited 7 months ago)

Why would it? Super is its own scam

Scam: a fraudulent or deceptive act or operation

Can you elaborate on super being its own scam?

[-] zik@aussie.zone 6 points 7 months ago* (last edited 7 months ago)

I worked in the superannuation industry for a while. I wouldn't say that super is exactly a scam but it's a terrible mess and the fees we pay on super in Australia are insane. Basically we have a lot of parasites taking a cut and that ends up making the standard funds poor investments. Median returns on the super funds are around 5.6% pa (over the last ten years for the standard "balanced" option) at a time when stock market tracking funds have appreciated by over 8% pa. A lot of that is being lost in inefficiencies and fees.

By comparison Americans with a 401k invested in the NASDAQ would have made 17.3% pa over the same period.

We're getting a terrible deal with superannuation, and for many it's the difference between retiring comfortably or retiring in poverty.

[-] DavidDoesLemmy@aussie.zone 3 points 7 months ago

Are you comparing a balanced option against a 100% stocks option? That's hardly a fair comparison.

[-] zik@aussie.zone 1 points 7 months ago

It's a fair point but my intention was to bracket the possible returns.

load more comments (1 replies)
load more comments (3 replies)
this post was submitted on 25 Mar 2024
66 points (95.8% liked)

Australia

3579 readers
91 users here now

A place to discuss Australia and important Australian issues.

Before you post:

If you're posting anything related to:

If you're posting Australian News (not opinion or discussion pieces) post it to Australian News

Rules

This community is run under the rules of aussie.zone. In addition to those rules:

Banner Photo

Congratulations to @Tau@aussie.zone who had the most upvoted submission to our banner photo competition

Recommended and Related Communities

Be sure to check out and subscribe to our related communities on aussie.zone:

Plus other communities for sport and major cities.

https://aussie.zone/communities

Moderation

Since Kbin doesn't show Lemmy Moderators, I'll list them here. Also note that Kbin does not distinguish moderator comments.

Additionally, we have our instance admins: @lodion@aussie.zone and @Nath@aussie.zone

founded 1 year ago
MODERATORS