There is no solution in sight for Australian seniors

How long can our government keep its grubby hands off superannuation contributions, money sitting in managed funds for the future

How long can our government keep its grubby hands off superannuation contributions, money sitting in managed funds for the future benefit and retirement aspirations of hard working Australians? 

Australia’s deficit continues to escalate out of control already reaching a mesmerising figure currently in excess of $347,000,000,000.00 or $15000.00 for each man woman and child in our country. The interest alone is reaching $1,000,000,000 per day.

Current policies will do nothing to reduce it. No matter how much is taken from, health care; medicare; education; age pensioners or the disabled to name a few; no matter how many tax incentives are given to big or small business; no matter how much tax is levelled on superannuation payments there is no solution in sight.

But there is and who would think that the Government or Treasury officials have not given it thought and working out figures.

Superannuation contributions are now in excess of $3 trillion and growing expecting to reach $10 trillion within the next decade. A vast sum doing nothing but raising interest for contributors and making fat cat fund managers fatter. It will be decades before the bulk of these fund are required for the purpose intended, what will the sums be then?

A Government, whatever persuasion, will be tempted to take control of superannuation funds enabling the clearance of any deficit to world banks and such like and use the money to fund infrastructure requirements; health; medicare and education requirements. Interest levels for contributors would be maintained.

Once government control of superannuation contributions is cemented, contributors will receive payments from a renamed and revamped form of aged pension. By raising the age of the age pension, albeit in stages to 70 (so far), the government has already receive a bonus of 5 years with minimum new aged pensioner payments giving time for strategy to be developed.

Fantasy or this will happen? What do you think?

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  1. Ria Young  

    The government has done this before. Increased tax paid by taxpayers was set up to provide for Aged Pensions for all, and then the government got into trouble, and annexed the fund set up for Aged Pensions, and transferred the money into general revenue, for a short term solution. this short term solution became a loooooong term action, this money has not reverted back to a fund for Aged Pensions, which were never a Welfare Payment. Don’t let the government get their dirty hands on private pension funds. The super guarantee payment was set up to replace wage increases, and to get people to save, to supplement the inadequate Aged Pension, which is well below the poverty line. Now, the government wants to decrease the Aged Pension, decrease the number of people getting the pension, calling it welfare, and they now also want control over people’s Superannuation Accounts and probably confiscate most of that when they get into trouble, as the situation now. The LNP are hopeless money managers, and will run this country into the deeper and deeper debt.

  2. As soon as I was able to salary sacrifice to super I started to. My job wasn’t well paid but working in direct care meant I worked most weekends and evenings as well as during the week.Penalty rates were the only thing that made the slog worth while and my plan to provide for my self into the future meant each shift I worked I regarded as a pay for now and pay for when I retire.
    I am furious at this government for no consultation as far as changes to Super and to feel they can say to US …..Sorry ,it is no longer the rules and we will backdate the ” rules” and penalize you for breaking them.
    What they feel they have the right to do next is any bodies guess.
    We are not rich. I always plan ahead in every aspect of my life. It’s a part of my personality so that won’t change. BUT if governments encourage you to work and save to supplement your self in retirement, taking some of the burden off them , do they have the right to say we will change and Backdate those changes to 2007.
    My husband was right. He always maintained they would set it up then take it way if it suited them.
    I should have not worried about those extra shifts and stayed home with my family.

    • Chris McElroy  

      Feel exactly the same. Spent a reasonable amount of money with financial consultant to plan for retirement and worked shift work until aged 67 (now nearly 69) . Planned income from this with 66% coming from superannuation and 33% coming from pension. Not a large income I can tell you approximately one third of what I was earning before retirement. Now government wants to change rules and take pension part off me, because I have too much super. Should go out and spend the whole lot and depend on pension.
      How much has any politician been put out of pocket because Australia is living outside of its means? I would bet not a brass razoo, but can still fly around on expense account at our expense. Have they not heard of the buzz word in business – time management, or the old adage of quality management – work smarter not harder.

  3. Susie  

    Aren’t they already doing this? The Queensland Government “repatriated” (funny-I thought that meant returned to its home) 4 billion from Qsuper, no doubt never to be seen again by the suckers who contributed it, thinking to secure their future!. If anyone else did this, its robbery.
    So the Queensland Government are thieves and liars

  4. Truth 13  

    Of course, there is a way for the Seniors to dictate to any party. They are over 30% of the voting public. If they unite, they can teach a lesson & show the way to the lousy politicians. 30% of the seats in the Senate is close to 22 seats. Then only, they can show the people who were robbing the voters, how to look after them. TIME TO UNITE, AND GET BACK AT LEAST A PART OF WHAT WAS PAID FOR 35 TO 40 YEARS, IN WORKING LIFE.

  5. Trevor  

    I have said it before Truth 13 we can bring down a Government if we get together.
    For sure a future Government will work out a way to get their hands on the super money.
    I think of all the costly mistakes Governments make with no recourse or conscience.
    Just look at the Carr Labor a desal plant that cost a fortune disrupted peoples lives never been used,and the tax payer still pays for it .The failed light rail that they had to pay millions to the builders to get out of the contract.The Victorian Government have just paid out 1.5 B to get out of the across city motorway and down the track a future Gov will build it.
    This is just a few examples you could go on and on

  6. The Baby Boomers are the governments focus. We worked in most cases from age15, paid high interest on our mortgages, no child care relief for this group. The majority of this age group have paid into private medical most of our lives, we have brought up children who work, have bought their own houses(after living in with Mam and Dad for a while!) and now the Government want to punish us for putting away nest eggs for our aged years. I feel as I’m sure many do, that if pensions are to be “used”, by the Government. Start with the politicians first. I for one will not lie down and take this from this Government. Time to see who in Government is behind this and vote against any move for this action

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