Superannuation Discussion + market volatility

[Happy Dude]

Please don't tell @JessicaTam about the grammar.

As super returns are always in the past the grammar should have be "consistently outperformed the retails".

lol. I'll leave the grammar-shaming to the grammar thread. It was more about others disagreeing. If your fund appears above the retails on a table ranking funds by best to worst performance, where's the disagreement?

 

[Quickstatus]

where's the disagreement?

Refers to the some or more of the parts of that paragraph starting from "Super needs to be...".

 

[RooFlyer]

My best Super investment was to buy an investment property in Coles Bay (Tas) - sorta the Byron Bay of Tas ... appropriately scaled - 25 years before I eventually retired. Sold it after I retired co-incidentally during a local real estate boom and put the proceeds into SMSF when you could tip heaps in. Kept me in gin ever since.

I do think that people should be able to withdraw from their Super funds to put a deposit to buy property (as a residence) as its a much safer investment than alternatives you are permitted to invest in. And more socially useful.

 

[tgh]

withdraw from their Super funds to put a deposit to buy property (as a residence

A really good idea but of course not popular with guvmnt as they expect more aged pensions down the track

 

[SYD]

withdraw from their Super funds to put a deposit to buy property (as a residence

A really good idea but of course not popular with guvmnt as they expect more aged pensions down the track

Especially if the home is exempt from the asset test.

 

[Happy Dude]

Refers to the some or more of the parts of that paragraph starting from "Super needs to be...".

Ah. Gotcha. So it's a discussion about the risk level, not the fund's relative performance.

 

[Quickstatus]

So it's a discussion about the risk level, not the fund's relative performance.

it was a comment about relative performance and also a philosophical opinion of what super should be and the related/resulting overarching mandate for fund managers.

 

[CaptJCool]

And
Now the June 2024 figures are In
The flatlining continues
Hooray for good and decent superannuation

View attachment 406938View attachment 406939

And now September 2024





There appears to be a drizzle (slow) drift upwards

I haven’t got a working computer at the moment to do any great analysis.

Given the likely number turning eligible age, it’s still very low

 

[Quickstatus]

Given the likely number turning eligible age, it’s still very low

What would also be interesting would be the Full age pension equivalents vs recipients as many would be part pension

 

[andye]

And now September 2024



View attachment 418424

There appears to be a drizzle (slow) drift upwards

I haven’t got a working computer at the moment to do any great analysis.

Given the likely number turning eligible age, it’s still very low

Its pretty remarkable. Given the state pension is currently the biggest line item on the federal budget, super looks to have set the country very well for the future. (Seems hard to believe there are that many people working in late 60s to explain the difference between the first 2 columns)*

*Accepting 67 is qualifying age

 

[cove]

There isn’t any talk now about moving the pensionable age to 70 as we have a 2025 election.

 

[CaptJCool]

What would also be interesting would be the Full age pension equivalents vs recipients as many would be part pension

Here you are



Also the long ago migration program shows up
There’s a long tail of entitlement … - and the way people set up their family (home)
When you compare post world war 2 migrant cohorts by country of birth to the census data by age the pension rate is 80% plus. The born in Australia rate running much low (high 50s)

 

[Quickstatus]

super looks to have set the country very well for the future.

So long as the Guvment does not fiddle with it, especially telling fund managers where they can or cannot invest

 

[RAM]

The comments about ‘conservative’ asset allocation when moving to the pension phase can lead to unfortunate outcomes.

The median person approaching retirement age, say now aged 60, should have a life expectancy of 25 to 33 years.

Yet too many ticket clippers aka advisors/consultants/super funds only focus on your retirement date akin to one year’s Melbourne Cup.

A number of funds will move your asset allocation to lower growth assets once you hit 55 (for example).

So at that stage you have at least 35 years life expectancy.

What’s the difference to the outlook for a 30 year old’s AA?

 

[Quickstatus]

What’s the difference to the outlook for a 30 year old’s AA?

Picking the 55yr age is disingenuous. The better number is preservation age. 55-67 is the age when most people can max their super contributions - mortgage free, no school fees etc etc.

The difference is the retired (ie the ones who have reached preservation age) cannot add/rebuild their super through SG, salary sacrifice, or through other income and compound interest (as they are drawing down their super)

 

[Pushka]

Picking the 55yr age is disingenuous. The better number is preservation age. 55-67 is the age when most people can max their super contributions - mortgage free, no school fees etc etc.

The difference is the retired (ie the ones who have reached preservation age) cannot add/rebuild their super through SG, salary sacrifice, or through other income and compound interest (as they are drawing down their super)

At 68 you can convert part to pension phase and still keep working and we are certainly building our super through SG, and SS into the accumulation fund. Likely to be able to do that for the next three years barring health issues.

 

[SYD]

At 68 you can convert part to pension phase and still keep working and we are certainly building our super through SG, and SS into the accumulation fund. Likely to be able to do that for the next three years barring health issues.

Also downsizer contributions are a good way to top up (a lot).

I’ll be keeping most of my super in Growth / High Growth and taking the min % for sometime to come.

 

[Pushka]

Also downsizer contributions are a good way to top up (a lot).

I’ll be keeping most of my super in Growth / High Growth and taking the min % for sometime to come.

How many times can you downsize? We sold family home in late 2019 and put a chunk into super.

 

[Gremlin]

How many times can you downsize?

You can downsize as many times as you like. But you only get one downsizer contribution.

 

[Pushka]

You can downsize as many times as you like. But you only get one downsizer contribution.

Ok. What defines a downsize contribution then because you can just put money in as well.