by Alan Thornhill
The recent volatility on world markets has shocked millions of Australians, who expect their superannuation to fund their retirement.
That’s hardly surprising.
They have suffered big losses, as share prices fell.
And those losses have not been covered by later rises.
Mr Costello angered the superannuation industry, by telling The Australian newspaper that he “wouldn’t worry” about the financial fate, of those who had invested, voluntarily, in superannuation.
The Financial Planning Association described those comments as “impulsive.’
And the Association’s deputy chief executive, Deen Sanders, defended association members who have advised thousands of Australians to save for their retirements, through superannuation.
He said Australians were right to seek advice on such matters.
Mr Sanders said Australians had been right, also, to take advantage of the “tax effectiveness” of superannuation.
“Having an adequate, self-funded retirement income strategy for Australians has always had bipartisan support,” Mr Sanders said.
“Superannuation is a long term investment vehicle,”he addded.
“And despite current performance, it remains one of the most tax effective, high performing options for Australians to save for their retirements. ”
Of course, as Mandy Rice-Davies once famously said, in other circumstances, “he would say that, wouldn’t he?”
And Mr Sanders did conspicuously fail to declare that superannuation is not a riskless investment.
Australia’s superannuation fund have, indeed, performed quite well, over the medium to longer term.
But, as recent events show, super does have its problems, too.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Saturday May 25
The Dow Jones Index rose 8.60 points to 15,303.10
- Sharon Coulton on Proposed family tax benefit scrapped
- Pete on Rudd government had entered “paralysis:” Gillard
- Liam Knuj on The Prime Minister, Julia Gillard’s, New Year’s Message
- Change is for the better,change is where your heart grows stronger on Family Assistance boost
- Harry on The Prime Minister, Julia Gillard’s, New Year’s Message
|Aud To Usd||0.9651||N/A||N/A|
|Bhp Blt Fpo||34.360||-0.520||-1.49%|
|Bramb Ltd Fpo||9.170||-0.330||-3.47%|
The News This Week
- Shares – and the $A – tumble
- Farmers meet to map out a future
- Ford Australia to close
- What was Joe really saying?
- Slow payers squeeze business
- Paid parental leave? Look again
- What went wrong:Treasury chief explains
- Working smarter works:Swan
- More rate cuts possible
- Employers urge moderation in the national wage case
- The right man for the job? Wrong question!
- Small business:a warning
- Where’s Gonski now?
- Super:the political questions
- Abbott casts a wide net
- Airlines (62)
- Banking (2162)
- Business (2267)
- Communications (50)
- crime (12)
- Disaster (103)
- Economics (2232)
- Environment (100)
- Financial advice (2022)
- Health (81)
- Housing (622)
- Inflation (508)
- Insurance (90)
- Investment (1878)
- Markets (1640)
- Media (117)
- medical (20)
- mining (169)
- pay (70)
- Politics (2210)
- population (74)
- Regulation (917)
- retirement (64)
- Rural australia (100)
- Security (19)
- Social security (229)
- Superannuation (212)
- Tax (352)
- The latest (4)
- Trade (543)
- Uncategorized (334)