Posted on 12/30/2006 5:24:34 PM PST by Dundee
FIFTEEN years after Paul Keating introduced the superannuation guarantee legislation, Australia's superannuation assets are set to smash through the $1 trillion level.
The magic number, which is set to be passed within the next two weeks, has dramatically changed Australian savings patterns, creating a funds management industry that is the fourth largest in the world and helping to fuel Australia's stock market boom.
It has also given a new generation of ordinary Australians with a significant level of savings outside their family home and boosted careers and salaries in financial planning, funds management and investment banks - which have designed new deals to take advantage of the huge amount of cash looking for a home.
More than $150 billion in new funds has flowed into superannuation in the last year alone, with investment managers looking at investments from shares to property, infrastructure to private equity - and an increasing volume of funds now looking for new assets offshore.
...
More recent changes under the Howard Government have also encouraged the development of self-managed superannuation funds, which now represent more than $210 billion of the industry.
...
"Keating did two major things. He encouraged the Arbitration Commission to require that a certain percentage of wages be paid as superannuation and he made sure it was preserved - that it could not be taken out and spent.
"Without these changes we would still have a system where most Australians had practically no financial assets other than money in bank accounts."
Started by the Hawke/Keating government and further encouraged by the changes of the Howard/Costello Government, Australia's massive superannuation wealth has created a unique situation which puts the country in a better position than other major Western nations to cope with the retirement of the baby boomers.
(Excerpt) Read more at theaustralian.news.com.au ...
A lockbox?
The rules for superannuation is that the money must stay in superannuation until retirement age (for me it's age 65).
It goes into the superannuation fund of my choice. There are literally hundreds (if not thousands) of funds to chose from. The money is invested in whatever way the fund thinks will give it the best result to match the risk profile of their investors.
The money that is in superannuation doesn't go to the government like your SS taxes. The idea is that by the time you retire you don't have to rely on the government to support you.
Sweet! Can Yanks sign up?
HEre in the states SS serves as another form of wealth redistribution. Those who make intelligent decisions must transfer their wealth, via Uncle Sam, to those who make poor decisions. Pretty much sucks if you ask me.
How does medical care or prescription drugs fit into the mix in Australia? In the USA, this has become part of the retirement package from the government.
Two reasons why the USA congress does not want private accounts here: they want to spend the money on other pet projects, and two they want to keep citizens dependent on government for political reasons.
There are many, many things I love about America, but its Social Security system I wouldn't touch with a 10 foot pole. I find it hard to believe that anyone would put up with a nutty system (not that what we've got down here is perfect by any stretch of the imagination).
I hate you.
;^P
The more handout programs we introduce, the more we encourage people to not act responsible.......liberals think they are helping people, but they are actually torching the soul out of people.
Medical care is a mix of public and private (think of a blend of the Canadian and American systems). Some prescription drugs are subsidized by the government but on a cost/benefit basis.
"The money that is in superannuation doesn't go to the government like your SS taxes. The idea is that by the time you retire you don't have to rely on the government to support you."
In other words, Privatized, like Houston and our bastard politicians.
I hate you too.
;^P
This might be a dumb Aussie question, but huh?
>>>The more handout programs we introduce, the more we encourage people to not act responsible...
An oldie; but a goody.
"Price of Free Corn"
http://breederville.com/auction/forumtopic.php?topic=53&boardid=4
Touché!
perfect
?
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