July 9, 2010
The Federal government would like to increase employer contributions to superannuation from 9% to 12% by 2019.
This may seem like a good idea to make people save up for their retirement, but there are many problems associated with it.
By increasing the super contribution to 12%, that’ll be an extra 3% of your income that isn’t going to go towards living expenses. In effect, it is a pay cut. In a time when the majority of people are facing increased taxes, bills and interest rates, it will push people under.
Super contributions for the financial year ending in June 2009 were $112.2 billion. Total super assets decreased by 5.8% during the same period. This money could have been better spent elsewhere.
Why throw your money into the stock market when it is a rigged game? All these large investment banks and hedge funds are breaking the law without being prosecuted. Due to the volatility of the market it could very well be lost before you reach retirement. Right now it’s probably safer to go gamble at a casino than invest in shares.
Government taxes super. Taxes on super could easily be increased in the future to pay the government debt.
This article was posted: Friday, July 9, 2010 at 10:07 am