Written on the 28th of September 2011 by James Cagney
The Australian Government has abdicated its responsibility to look after hard working people in their retirement by creating the misnomer that it is employers who should pay for our retirement through the Superannuation scheme. You have been led to believe that this contribution is adequate for your retirement. Well it’s not. The average Superannuation contribution by employers and employees for many countries in Europe is around 17% and some countries have as much as 27% contributions. Many of these countries in Europe have had pension schemes since 1945. Look at Europe today their debt is growing and they can not support their pensioners. So how on earth can Australians hope that the Superannuation Scheme, which was only introduced in 1992, has enough money especially with our employer paltry employer contributions of 9%. As usual, the Government has lied to you.
The average annual returns recorded by Superannuation funds over the last ten years have been a mere 3.2% per Annam. This is below the inflation rate. Your nest egg is decreasing year after year. Many people just cannot grasp the reality that our money dramatically devalues over time and many of us will have to live in poverty. For example: $120,000 of cash savings and Superannuation today will only be worth $60,000 in 20 years time. So if you are retiring today and you think "She'll be right mate, I have enough to live on" - you are wrong. With the current inflation rate increasing at a steady rate, a loaf of bread that costs $4.50 today will cost over $13.00 within 10 years. Imagine what it will be like when you have to queue up for old bread because you can't afford fresh bread as many pensioners have to do today.
Get ready to pay more and more for electricity because the Labour Government, which are controlled by the Greens, do not want to build power stations. Their strategy is for the average family to decrease their power usage and the will encourage you to do this by increasing the price of electricity well above the inflation rate year after year. Get ready for huge increases in the cost of water as urbanization gobbles up supply and the Greens do not want desalination plants as it affects the ecology. You may agree with the Greens policy but I hope you have lots of money to pay for the increase in utilities prices. This month many thousands homes across Australia have had the electricity switched off because they can’t pay the bill. This is not right. Electricity is an essential service all families needs to have. This is inhumane. What will the service providers do because somebody has to pay for this? That will be you - through higher utility prices and increased income taxes.
So what will happen to these retirees who are going to lIve into their eighties and nineties and they barely have enough money to survive for a few years in retirement. Australia is one of the few counties in the world that allows you to draw your Superannuation out as a lump sum. Think about it – if you were 65 years old and retiring today and you only had $100 000 in Super to last you for the next 20 years - that is only $96.00 a week for 20 years. Why wouldn’t you say “To hell with it honey let’s buy a caravan and tour around Australia for two years and enjoy ourselves. Then with what’s left take an overseas trip. At least honey we will have two really good years”. They accept that they will have to live the rest of their lives on the government pension, Medicare and eventually end up in a government retirement home. . The alternative for them is draw $96 per week and prop that up with the government pension (now $450 per week which you will get anyway if they did not have Super). If someone had told you when you started working that your fate was to work hard for the next 40 to 50 years and retire in poverty I wonder how motivated you would have been back then to work? That is why we have two to three year generation bludgers on the dole. They have worked it out!
So many Australians have the “She’ll be right mate” financial plan. Some believe that they will just have to continue working until the day they die. Well that is not going to happen either. Over a third of retirees today had to retire because of health reasons – so you might not have the choice. You will have to retire and depend on the government for support. Good luck!
Please do not rely on the government to support you in your retirement - they don’t have the money! Let us help you with your retirement plan before it's too late. We will have licensed professionals to assist you to adequately plan for your future using time proven and sound strategies. Contact us by clicking >>>> hereand we will get back to you without delay because time is of the essence. The longer you leave it the harder it becomes. Do not say you will do it later because “one of these days is none of these days” - time is not your friend. The later you leave this the more pressure you put on yourself. DO IT NOW!
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If you are interested in making your hard earned money work for you instead of letting it dwindle away in the stock market click on Investment Property>>> here. If you have Super you have shares because most Super funds are invested in the share market. Share spruikers will tell you that the share market is long term so hold on it will come back. They are sooo right - you have been putting money into Super since 1992 and the share market is back to 2004 levels - how much long term do you want to be in a declining market. Imagine what it must be like for those unfortunate people that are retiring right now, who do not have enough money to live because their Super is down 30% to 40%. Don't let that happen to you. Property has proven to be the safest investment over the past 110 years in Australia. Don't let somebody entice you to invest to make the quick buck. Property is not a get rich scheme it is a "get rich slow" scheme. Unlike those retiring today you still have a choice - take action today and click>>> here to contact us.
Please note:
The information featured in this article is general in nature and therefore should not be solely relied upon as a solution to your personal situation.Before making any investment, insurance or financial planning decision, you should contact and consult a licensed professional who can advise whether your decision is appropriate to you.
