this post was submitted on 25 Mar 2024
66 points (95.8% liked)
Australia
3463 readers
426 users here now
A place to discuss Australia and important Australian issues.
Before you post:
If you're posting anything related to:
- The Environment, post it to Aussie Environment
- Politics, post it to Australian Politics
- World News/Events, post it to World News
- A question to Australians (from outside) post it to Ask an Australian
If you're posting Australian News (not opinion or discussion pieces) post it to Australian News
Rules
This community is run under the rules of aussie.zone. In addition to those rules:
- When posting news articles use the source headline and place your commentary in a separate comment
Banner Photo
Congratulations to @[email protected] who had the most upvoted submission to our banner photo competition
Recommended and Related Communities
Be sure to check out and subscribe to our related communities on aussie.zone:
- Australian News
- World News (from an Australian Perspective)
- Australian Politics
- Aussie Environment
- Ask an Australian
- AusFinance
- Pictures
- AusLegal
- Aussie Frugal Living
- Cars (Australia)
- Coffee
- Chat
- Aussie Zone Meta
- bapcsalesaustralia
- Food Australia
- Aussie Memes
Plus other communities for sport and major cities.
https://aussie.zone/communities
Moderation
Since Kbin doesn't show Lemmy Moderators, I'll list them here. Also note that Kbin does not distinguish moderator comments.
Additionally, we have our instance admins: @[email protected] and @[email protected]
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Can you elaborate on super being its own scam?
I worked in the superannuation industry for a while. I wouldn't say that super is exactly a scam but it's a terrible mess and the fees we pay on super in Australia are insane. Basically we have a lot of parasites taking a cut and that ends up making the standard funds poor investments. Median returns on the super funds are around 5.6% pa (over the last ten years for the standard "balanced" option) at a time when stock market tracking funds have appreciated by over 8% pa. A lot of that is being lost in inefficiencies and fees.
By comparison Americans with a 401k invested in the NASDAQ would have made 17.3% pa over the same period.
We're getting a terrible deal with superannuation, and for many it's the difference between retiring comfortably or retiring in poverty.
Cherry picking an article seems to suggest the US has similar problems https://www.investmentzen.com/blog/average-401k-return
Australia's superannuation has improved over time. For example, the MySuper reforns led to consolidation and an exodus of underperforming funds.
A quick search on some of the biggest super funds in Aus shows returns of > 9% in a more equivalent, potentially volatile "high growth" fund.
There are funds that offer lower cost index-tracking products if that's your thing.
The biggest problem, IMO, is financial literacy which needs to play a bigger role in education.
Are you comparing a balanced option against a 100% stocks option? That's hardly a fair comparison.
It's a fair point but my intention was to bracket the possible returns.
Government mandated coke-fuelled gambling parties for investment bro's
Where do you suggest people invest their long term money to avoid the scourge of coke bros? If one is to believe the stereotypes, real estate and non-Super investments seem just as likely to face the same problems.