lets talk about your superannuation


better in

this web site discusses superannuation

But, before you read further, let’s make it clear. There’s no financial advice given here – everyone’s personal financial situation is different and there’s no ‘one cure fixes all’ solution..

This website has no agenda, it isn’t trying to sell you anything or influence your financial decisions in any way.

All you’ll find here is information and discussion to help you make your own common sense decisions about what might be right for you.

Do your own research to determine whether anything you read on the web site has any relevance to your own personal situation.

If you’re unsure about making any financial decision it might benefit you to seek the services of a professional financial adviser.

There are only
5 pages

on this web site
all are accessible from
the drop-down menu
in the header or
via the buttons
at the bottom
of each page.

Even if you only
read just this
maybe you’ll
look at ‘managed’,
(or ’employer-sponsored’)
superannuation plans
the same way ever again.

In only about 5 minutes,
you’ll get to see
for what it is

without all the hype and
financial gobbledegook

that has been fed to
Australians since super
started in the 1990s.


is one of the
biggest con jobs
ever foisted by
on the
Australian people.”

Tony Abbott told parliament in September 1995

Likely, if you’re reading this
at all, it’s probably because
you suspect or recognise
something’s ‘wrong’
with your super
and that maybe It’s time for
to re-think about
whether your Superannuation
is really the best vehicle for
you to save money
over the long term.

Maybe it’s time to take a
look at the continuous
the super industry feeds us
to keep us blindly ‘contributing’
our income into their funds
without realising what’s actually
happening to our savings.

It’s time to talk language even
Blind Freddie can understand.

OK – here comes
an illustration

using simple

Sorry about using

But there’s no other way
of doing this illustration
without them – and
they’ve been kept as
simple as possible.


For the purpose of this example the tax deduction that superannuation contributions can attract is not taken into consideration – there are just too many variables.

This example is only concerned about what happens to your contributions when they GET TO a managed / employer sponsored superannuation plannot what their journey was on the way.

It attempts to illustrate the possible effect that tax and fees can have on the effectiveness of saving money in a ‘managed / employer sponsored’ superannuation plan.

…those compulsory ‘contributions’ that are taken from your income and sent off to your super savings account, supposedly to add to your total savings ‘nest-egg’, actually do little more than generate :-

Maybe that wouldn’t be much of an issue if superannuation was the cost-efficient, tax-effective, high growth, long-term savings solution that it’s cracked up to be.

With most ‘managed’
funds returning
less than 6%
in the tax year
(to 30th. June 2016)
with some posting
negative returns
it’s not looking all

that promising for
people who are in one.

Follow the explanation below to see why.

Contrary to common belief …

In this example assume you, (or your employer who is obliged to take money out of your salary/wages and then ‘contribute’ it back on your behalf), has just ‘contributed’…

$1,000 of your money

into a ‘managed’ superannuation plan.

What is a ‘managed’
superannuation plan?

Managed / employer
sponsored’ superannuation
plans are those that are
usually set up for you by
someone you’ll likely
never meet.

It could be a financial advisor,
or a business or employer
that often has
no interest in you individually
nor does it
have the expertise
to consider
your personal
situation or financial needs

Thereafter you just keep
sending your money
to it and you let people
don’t know, who also
no interest in you or
individual situation,
‘look after’ it for you
(for a fee).

Also this example assumes that your super fund NEVER goes backwards as the result of a market ‘correction’ because, if it does, what follows gets a whole lot worse.

Firstly, your fund
manager will remove
the 15% contribution
tax out of it, and send
it off to the tax

in this example, that means
$1000 * 15% = ($150)
gets paid in tax.

Then, your fund manger

will likely take it’s fees
out as well

in advance and

(we’ll come back to
that subject later).

Just to get that
back by the end
of the first year
your remaining
must earn you
in interest.

To get your $150 back,
your $850 has to make

$(150/850) * 100 =


Remember we’re ignoring
the fund’s management fees.

They’re on top of this.

it gets worse …

This is where it
really starts
to go pear-shaped.

… because, if think about it
for ANY savings plan to be
of any value to you it must …


so, if you assume an
inflation rate of just
… by the end of year 1
your $1,000 needs to
have grown by 3%

$1000 * 3% = $1030
just to break even

This means your $850
has to make you
$1030 – $850 = $180

by the end of the year,
just to keep up
and to do this it must
show a return of
$(180/850) * 100 =


Can’t see that happening
any time soon …

it gets worser …

Because any gain made
by your super
gets taxed at 15%
so, on
that $180 you just made,
you’ve just lost another
180 * 15% = ($27.00)

Which is ANOTHER

so, your fund
really needs to earn
in the first year of
that contribution
just to break even.


needed in year 1
to ‘catch up’ with
what’s been taken
in tax and
inflation of just 3%.

Are you getting the picture?

Then, if you use the services
of a financial advisor
there’s their fees to consider …

24% + ?

not finished yet …

it gets worser …still!

… now there’s the
fees your
fund manager
takes to consider …

so, now it’s …

24% + ? + ?

the fees and charges
taken by your fund manager

Apparently, in Australia,
the super industry sucks
$20 BILLION in fees
from super accounts
that’s $20,000,000,000

If you think about it,
it’s likely, some of them

superannuation not finished yet

Likely, YOU’RE
not concerned about
the fees or charges
YOU’RE paying
because you’ve been told
by YOUR super fund that
it charges YOU ‘low fees’
but doesn’t explain exactly
what it’s fees are lower than.

It may even tell you it’s
‘set up only for the
benefit of members’
almost like a free service.

This tends to give you a
‘warm-fuzzie’ because you’ll
be inclined think that, while
who puts money into super
is probably paying HIGH fees
they’re obviously STUPID)
you’re satisfied you’re
not one of them …

… or are you?

If you ask just about anyone
these days they’ll ALL tell
you THEY’RE OK because
THEIR super fund charges
low fees.

superannuation not finished yet

Quote from article

‘So where do the
fees end up?’

‘In the pockets of
superannuation funds
and the asset managers
they pay to invest
your money.’

It’s a multi-billion dollar
fee factory where
fees charged are
far in excess
of the true cost
of running your funds.’

Just have a glance at
these excerpts
from super funds
financial reports for

Here’s a couple of
fairly large and ‘caring’

super funds that
reckon they’re only
there for the the
benefit of members
and charge some of
the lowest fees
of any fund
in Australia.

The first extracted

$183+ million
– yep! –

‘account keeping’
fees in 2015
from it’s
member’s accounts


the second had
‘admin’ costs of

which were paid before any members received anything.

If you think about it
EVERY ‘contribution’
you EVER make to
your super fund,
no matter how big
or how small it is
gets treated in
the same way as
that $1000 in the
above example.

Because, while you tend to look at your super account as a single entity, (like a bucket of water) – it isn’t.

If you think about it, your WHOLE superannuation savings plan is just an accumulation of lots of individual contributions, (like lots of drops of water that make up the contents of the bucket).

And, no matter how big or how small each contribution is individually, every single one of them gets treated the same way and has to ‘catch up’ before it’s doing YOUR super fund any good.

And, probably,
of them can
‘catch up
with whatever’s been
taken on the way
added to inflation.

Maybe now, like blind Freddie, you can see what Tony Abbott might have known back in 1995.

The chances are it’s ‘going’
pretty much like everyone else’s.

And, if it is, it means you’re going
to get pretty much the
same results that they do.

Now, it maybe a
good idea to take a
careful, look at your last
super statement.

Check to see if you’re paying
for things, (e.g. insurance),
maybe you really DON’T NEED?

If your super account balance
looks like there’s been an increase,
check to see if that increase is only
about equal to any ‘contributions’
you made during the year.

If it is it means that, in reality,
your original savings didn’t have
much growth at all and maybe
it’s time to honestly re-consider,
how’s YOUR super really ‘going’?

Because, if your super is ‘going’
pretty much like everyone else’s,
it stands to reason that,
as many people retire with
‘nest-eggs’ that are
totally inadequate
to support
them during their,
20 years of retirement
likely going to be just like them.

If you’ve got this far,
there’s some links below
to discussions about other
aspects of your superannuation
that might interest you.

Maybe, sooner,
rather than later
might pay you to
ask yourself the question.

‘If you could CHOOSE where
you saved your money would
you deliberately CHOOSE
to save it in a ‘savings’ plan
like the one you have?’

If your answer is NO,
then why DO you?

You DO have some
alternative options –
but only you can make
the necessary changes.

No-one else can
do it for you.

And, if you don’t
do something,
probably sooner
rather than later,

nothing will ever
for you
and you’ll just
keep on
donating your money
to a lost cause.

And while it may not
seem important now,
ask ANYONE who’s retired
or nearing retirement
how important what’s in
their super plan is.

superannuation some good news

Even Blind Freddie
realised, if he's ever
going to have enough
money to retire with

he needs a different
saving strategy to the
one he's got now.

And he came
up with one.

superannuation no fees

Contact Lets Talk Super

7 + 11 =