Posted on 06/30/2025 9:44:38 AM PDT by E. Pluribus Unum
Where you’re being taxed on money you haven’t even made yet.
Let’s start with the basics. In Australia, superannuation, or super, is not the pension. It is not some generous government handout that allows you to stop working at 60, drink wine before midday, and collect a lovely weekly cheque just for surviving this long. No, that fantasy is reserved for the Age Pension, which is only available if you’ve somehow managed to make it to 67 and own roughly two pairs of socks and a toaster, and not much else.
Superannuation, on the other hand, is your own money. Sort of. It’s money that your boss legally has to put aside, currently 11.5% of your wages, into a special account that you can’t touch until you’re 60(ish). You can add in extra cash yourself, but it’s like saving for retirement with your hands tied behind your back, while someone else chooses the piggy bank, its color, and the interest rate.
Super was made compulsory in 1992 by then-Prime Minister Paul Keating (of Zegna suits, antique clocks, and insults so sharp they could julienne a carrot). The idea was that super would give people dignity in retirement. A noble pursuit. But fast-forward to now, and unless you’ve been earning CEO money since the year dot or had the foresight to start salary sacrificing before you could legally vote, your super balance probably isn’t going to buy you much more than a second-hand recliner and a few tins of tuna.
Now, about the pension. In order to get the full Age Pension from the government, you have to be 67 and basically living like a hermit on a budget. The current maximum is about $1,149 a fortnight for singles, which might sound fine until you realize that a Felafel Roll these days...
(Excerpt) Read more at fee.org ...
Partially good idea. I know this article involves Australia and the money is not being invested well.
But as an example 11.5% of one’s salary provided by an employer and invested in the S&P500 index over 30+ years is not a bad start towards a retirement fund.
Government is an enemy of society.
They're too stupid to prevent it.
It’s for their own good, after all.
Perhaps the govt should invest 80% of your income for you.
Bkmk
Great article!
Sad that so few Freepers will bother to read it.
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