Superannuation, the ultimate government cash cow?

[divs4ever]

help we will be drowning in a sea of debt if we aren't already.

yes ... how dare we run a trade surplus , we should drown in debt to show solidarity with our Five Eyes partners

 

[farmerge]

We already are

Who's good at breaststroke the only swimming stroke to get you to shore safely.

 

[Belli]

If our Super doesn't take a cut of the deal they would be mugs.

I understand the intent of your comment.

One aspect where there is a large amount of funds available for investment is the ownership of those funds tends to become abstract. It's the way it is I'm afraid.

The prime issue is one of the Trustees of the funds being required to act in the best interests of the members not according to Government wishes or any other body approaching the funds with "Do I have a deal for you!" If the Trustees assess it's a good deal for the members - and what is good can be interpreted in many ways - fine. If the Trustees decide otherwise then it's going to be politically tricky both for the Trustees and the politicians.

 

[sptrawler]

I understand the intent of your comment.

One aspect where there is a large amount of funds available for investment is the ownership of those funds tends to become abstract. It's the way it is I'm afraid.

The prime issue is one of the Trustees of the funds being required to act in the best interests of the members not according to Government wishes or any other body approaching the funds with "Do I have a deal for you!" If the Trustees assess it's a good deal for the members - and what is good can be interpreted in many ways - fine. If the Trustees decide otherwise then it's going to be politically tricky both for the Trustees and the politicians.

It sounds like that is about to all change @Belli.
Maybe the private sector don't want to invest in military, renewables because there is no return on capital? After all isn't super about funding peoples retirement.

There is a big push to change the "Your future. Your super" performance testing regime.

Big super hits out at performance tests

Fund chiefs descended on Parliament House for roundtable discussions as part of Labor’s push to have private money fund “nation building” investments.

www.afr.com

From the article:
Industry superannuation is leveraging its $1 trillion-plus asset pool to push the federal government to overhaul annual testing of their funds’ performance, telling Treasurer Jim Chalmers the regime discourages investment in the energy transition.

Big capital descended on Parliament House in Canberra on Tuesday for a series of roundtable discussions with Dr Chalmers and Energy Minister Chris Bowen, as part of Labor’s push to have private money fund “nation building” investments such as the energy transition, housing and defence.

Superannuation funds used the opportunity to push for an overhaul of the controversial Your Future, Your Super performance testing regime, which has been criticised for encouraging short-term investing and benchmark hugging.

As first reported by The Australian Financial Review on Monday ahead of the meetings, the Albanese government has already started consultations on overhauling the test.

Under the existing rules, the Australian Prudential Regulation Authority publicly names poorly performing funds by measuring them against a range of benchmarks over a 10-year timeframe as well as their annual fees. If funds repeatedly fail, they can be barred from signing up new members.

Assistant Treasurer Stephen Jones reviewed the regime earlier this year following industry criticism, extending the timeframes and range of benchmarks considered by the watchdog.

But funds told Dr Chalmers on Tuesday this was not enough, saying it discouraged them from investing in “nation building” projects which Labor wants private capital to bankroll, such as the energy transition.

 

[qldfrog]

A side question, I used to have my super with sunsuper now merged with qsuper into ART.
Can anyone recommend a super fund where you can self invest at least part of your own super into ASX shares.
Qsuper used to.
This is a rapidly moving scene so my request.
I did not consider SMSF so far due to compliances changes and worries.
But am keen to play a more active part on that money supposedly mine...

 

[Ferret]

Can anyone recommend a super fund where you can self invest at least part of your own super into ASX shares.

A lot of funds allow this. They call it a "direct investment" option or similar.

I do this with CareSuper. The platform is ok and the fees reasonable.

My wife has super with Australian Super. They also offer a direct investment option, but she doesn't use it. Its fees look a little higher.

 

[divs4ever]

A side question, I used to have my super with sunsuper now merged with qsuper into ART.
Can anyone recommend a super fund where you can self invest at least part of your own super into ASX shares.
Qsuper used to.
This is a rapidly moving scene so my request.
I did not consider SMSF so far due to compliances changes and worries.
But am keen to play a more active part on that money supposedly mine...

a bizarre idea for you , how about part directly into an index ETF ( the compulsory part ) and any voluntary part just invested as a normal share portfolio sure there is more tax now , but the omens are hinting your contributions will be thrown at government endorsed white elephants , would you prefer a taxable return or a good feeling from investing in unicorn f**ts

most ETFs will let you automatically reinvest your dividends

cheers

 

[qldfrog]

a bizarre idea for you , how about part directly into an index ETF ( the compulsory part ) and any voluntary part just invested as a normal share portfolio sure there is more tax now , but the omens are hinting your contributions will be thrown at government endorsed white elephants , would you prefer a taxable return or a good feeling from investing in unicorn f**ts

most ETFs will let you automatically reinvest your dividends

cheers

It is just compulsory

 

[qldfrog]

A lot of funds allow this. They call it a "direct investment" option or similar.

I do this with CareSuper. The platform is ok and the fees reasonable.

My wife has super with Australian Super. They also offer a direct investment option, but she doesn't use it. Its fees look a little higher.

Thanks @Ferret

 

[Belli]

But funds told Dr Chalmers on Tuesday this was not enough, saying it discouraged them from investing in “nation building” projects which Labor wants private capital to bankroll, such as the energy transition.

Quasi-Sovereign Wealth Fund. I don't necessarily object to that. Previous Federal Government's, Red and Blue, ran away from that idea a few generations ago.

 

[Belli]

A wild thought just came to mind. I'm with AustralianSuper and selected this PreMix

Hands-Off & Diversified Super Account | AustralianSuper

Our pre-mixed option allows you to select one option or any combination of options to create an investment portfolio that matches your needs.

www.australiansuper.com

Makes me wonder how many $$'s are tied up in this, DIY Mix and Member Direct which may not be easily available, if at all, and across all other super funds who have similar options, for the wunderinvest as proposed by Government. Gut feeling is some bright spark has looked at the funds available and gone there's $xx trillion but not accounted for investments directed by a number of members who prefer to do their own thing. Still a fair bloody wack of dosh available though.

 

[Belli]

I'm with AustralianSuper and selected this PreMix

For some reason the link I posted automatically goes to the High Growth selection. I'm in the Indexed Diversified.

Blasted mudern technology.

 

[Dona Ferentes]

For some reason the link I posted automatically goes to the High Growth selection. I'm in the Indexed Diversified.

Blasted mudern technology.

your screenshot is for your category.. there's a bar that allows to bring up High, Diversified or the bugger's muddle that is Socially Aware , amongst the 6 present choices.

 

[Belli]

your screenshot is for your category.. there's a bar that allows to bring up High, Diversified or the bugger's muddle that is Socially Aware , amongst the 6 present choices.

Ah, I see. Thanks for that explanation.

I actually find the site clumsy to some degree. It seems to be trying to be all things to no one in particular.

 

[Dona Ferentes]

I actually find the site clumsy to some degree. It seems to be trying to be all things to no one in particular.

a common complaint. ...by assuming a level of client understanding that matches their knowledge , they end up treating the customers as mugs, and the process frays from there on.

"a camel is a horse designed by a committee"

 

[Belli]

For those who are into this kind of thing, here is a site you can fool around with to see if you'll live in retirement without having to resort to the age pension.

FI Calc

ficalc.app

PS: It's all guesswork. Just because the numbers indicate it'll work doesn't mean there is any guarantee it will.

 

[divs4ever]

For those who are into this kind of thing, here is a site you can fool around with to see if you'll live in retirement without having to resort to the age pension.

FI Calc

ficalc.app

PS: It's all guesswork. Just because the numbers indicate it'll work doesn't mean there is any guarantee it will.

my original plan was designed to ( hopefully ) survive in the event the pension ( or a substitute ) is no longer available ( either to me or all Australian citizens )

i was thinking the pension was not guaranteed throughout my lifetime , maybe i need an independent source of income

 

[sptrawler]

PS: It's all guesswork. Just because the numbers indicate it'll work doesn't mean there is any guarantee it will

Yep it is amazing how many times once in a lifetime events re occur and stuff up people's plans. The 87 crash, the 2000 tech wreck, the GFC, Covid, inflation eroding the value of savings.
Allow for the worst and hope for the best, then you wont be disappointed.

 

[Belli]

Yep it is amazing how many times once in a lifetime events re occur and stuff up people's plans.

It tends to happen unfortunately. It's not only market events either. Health issues or the death of your partner/family member can place a big strain on people and not only financially. Life is cruel. There is no written contract so the "It ain't fair" clause does not exist.

There are other issues with numbers which tend to annoy me with all of these retirement projections. I looked at the ASFA numbers for a comfortable retirement for a couple. It provided an annual number but I think it was misleading to some degree. When I did delve into it, around 30% of the total was for simply retaining the roof over your head. Subtract that figure from the total and you are really not going to live the life of Riley on the remainder.

In addition, a couple who live in a house where the annual rates are $1,500 have less costs than a couple whose rates are $6,000. I know it's only supposed to be a guide or indication but it seems the media (which I no longer bother with to a large extent) keep on regurgitating it without any such qualification as far as I recall and I suspect or rather have wild guess, a lot of people believe the numbers without questioning them.

Admittedly it was a long time since I looked at the figures and they may have changed but I doubt it.

Anyway, I see the funds from SOL have been deposited to my account so that's a plus for today. Tomorrow when WHF does the same, it'll be another plus day.

 

[Belli]

I have reviewed the amount of funds in the account which receives my Retirement pension. As I knew would happen there is more than required. As a result I have withdrawn the excess to leave $20k (part of my emergency money in case TV, etc blows up)

I've transferred some of the excess funds to my children (Ta Santa) and placed the remainder in MIR.