WHAT ABOUT ME!

The last Labor Prime Minister Paul Keating had lots of visions as part of the so-called ‘big pitcha’ that he espoused as Bob Hawke’s Treasurer and then as PM.

One of them which I agreed with was compulsory superannuation even though it didn’t seem relevant to me personally twenty years ago. Keating wanted more and more Australians to be self-sufficient in their retirement and not rely on a pension.

It started at a modest 3%  and the Keating goal was for it to slowly grow to 15% of employer and employee contributions. It stalled on 9%, where it is now, and neither the Government nor Labor has been keen to increase it. Super has hardly rated a mention in this Federal election.

They’ve all been too busy rabbiting on about ‘working families’ and bribing mothers. The old woman who lived in a shoe would be a government-funded millionaire.

Liberal Treasurer Peter Costello sweetened the pot – especially for top earners -- when he abolished the 15% exit tax to give retirees more real cash in their pockets. He should have abolished the entry tax as well or at least first.  It is virtually double dipping by the Government anyway.

One of the reasons people don’t want to increase their contributions – as short-sighted as it may seem – is because they need every dollar they can get for the here and now and not for their twilight years.

And younger people regard super in the same way as life insurance. It’s too far down the track to worry about.

I have said before one thing that should worry people is their ignorance about their super funds. There is now nearly one trillion –not billion, trillion—dollars under management. It is a scandal the number of people who do not know which companies’ shares their super funds are invested in. They don’t even know the name of the Managed Fund. They change jobs and don’t take super with them.

All they see is not much going in and a lot going out in management fees. Just remember, as the TV commercial used to say, ‘it’s your money Ralph’.

Invest as much of it as you can, as wisely as you can because any elderly person will tell you: Life on a pension, after a lifetime of working and paying taxes, is not a bowl of cherries.

And I raise it again today of another group of voters ignored in this election. Single people. Divorced people. Childless couples.

As one complained in an overnight e-mail:

‘I have been having a whinge lately to all who will listen that I feel like one of the forgotten group with all Politicians.  In the last couple of days a friend told me that she heard your show where you raised some concerns along similar lines.  I am currently 57 years old and found myself separated/divorced in 2002 (not my choice but none the less divorced).  I am more fortunate than most in that my husband left with nothing.  I had a mortgage free house in Melton but due to changes in my life found it more suitable to move closer to work, family and friends.  This resulted in the purchase of a unit and a mortgage of around $88,500.00 with crippling interest.

I have approached my Superannuation Provider to gain access to my funds and have been told I have to be bankrupt and just about ready to ‘neck myself’ before I could get access to my funds.

I have worked full time since the age of 16, except for perhaps 2 – 3 years whilst becoming a mother.  Everyone else other than my Group seem to be getting hand outs/assistance – families, single mothers, migrants etc. etc.

WHAT ABOUT ME???’

Thursday, November 15, 2007

©Copyright Derryn Hinch 2007