are people FORCED to save money in a savings plan that INFORMS THEM it’s going to LOSE MONEY for them?
Shouldn’t ‘retirement savings plans be so secure they NEVER have a ‘negative’ return.
And if they do post negative returns and you add your losses to the fund’s fees, tax and then add the effect of inflation you’ll soon calculate your savings will find it ALMOST IMPOSSIBLE to catch up.
It begs the question …?
… pay fees to funds to lose money for you when you could just put your super into a savings account with a bank and likely NEVER get a negative return?
Can you imagine actually PAYING people you don’t know to lose your money for you when you can probably do a better job yourself for FREE.
While the following is from a different fund’s disclosure statement the fact is, as all funds are subject to the same market conditions and that many of them have the same investment advisers there’s generally little difference in ‘performance’ between funds from one year to the next.
Where on EARTH did this fund get a ‘growth’ rate of 8% from to do a projection of 45 years?
… do super funds
the money that people
try and save
(are FORCED to save?)
for the time they retire?
Easy to answer! ..
no-one seems to demand an explanation when their savings just ‘evaporate’ and no-one’s ‘responsible’ – it’s the ‘market’.
And a lot of people (choose to) think there’s nothing they can do about it anyway…. ‘it’s compulsory’- people just treat it like another TAX on their income.
‘Contributions’ are so efficiently deducted from their income they’re almost ‘invisible’.
Some people even think super contributions are something an employer has to pay on their behalf and that superannuation isn’t really their money they’re paying.
They consider their super fund payout is something like a ‘bonus’ they collect when they retire.
And all this makes sense.
Because, in many respects, (for as long as they’ve given their money to a ‘super fund’ to look after)… IT’s NOT their MONEY…
They think they can’t use it for anything, they have no control over it and they have no idea what’s happening to it.
And, other than a cursory look at the ‘start’ balance and the ‘end’ balance on their statement they have no interest in it.
That is, until they start to get nearer to retiring or laid off from work.
By then it’s too late for them and they retire from the workforce with only enough funds to last them a few years.
And as they don’t even see their contributions go ‘in’ they think they have no control about what happens to them.
They know they can’t spend them anyway and hope their super fund turns it into something sufficient to fund their retirement by the time they retire.
It seems most employed people gave less thought about the super fund their employer ‘joined them up’ for and sends their money off to, (and what it does with their money), than they do about what they’re going to have for lunch.
e.g. How many people leave employment and don’t even bother to ensure the contributions they made with their previous employer follow them to their next job?
Currently, there’s BILLIONS of dollars in ‘unclaimed’ super in various coffers – some of it might be yours.
This is particularly true of young people just starting out in the workforce who simply lose the contributions they’ve made in their early years of employment to the fees and charges imposed by the superannuation fund they was forced to ‘contribute’ to.
Then, when they realise their super’s a disaster it’s EASIER to BLAME THE SUPER FUND
‘It’s NOT MY FAULT my super’s a disaster’, ‘I ‘contributed’ for YEARS – it was the SUPER FUND didn’t ‘perform’.
‘I didn’t get to choose the super fund I was in my employer signed me up for it’
‘the market ‘crashed’ just before I retired and I didn’t have time to recover from the loss.’
‘It’s NOT MY FAULT’
While that may have an element of fact – the reality is if you’ve been putting money into super for years and it’s NEVER done anything to KEEP JUST KEEP SENDING MORE MONEY to the same fund to do the same with is INSANE!
And there’s no-one to blame about that except yourself.