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.
Thursday December 5
The Dow Jones index fell 24.85 points to 15,889.80
The Federal government and the Greens have reached a deal, under which the cap on Commonwealth debt will be abolished
NSW Energy Minister Chris Hartcher quits after ICAC issues search warrant against him.
East Timor’s prime minister says he is shocked by the Australian Government’s decision to authorise raids on a lawyer and whistleblower who were set to provide evidence against Australia in The Hague.
|Aud To Usd||0.9034||N/A||N/A|
|Bhp Blt Fpo||37.040||+0.240||+0.65%|
|Nat. Bank Fpo||33.970||-0.410||-1.19%|
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