Author Topic: Newspaper Readers Call Shenanigans Over Claim AU$1 Million Isn't Enough  (Read 1634 times)

NykkiC

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http://www.canberratimes.com.au/business/the-economy/superannuation-alert-1-million-isnt-enough-to-retire-in-comfort-20150419-1modsc.html

I'll admit, I almost didn't open the article because I thought it was going to be much the same as we see over on the the Antimustachian Wall Of Shame and Comedy. I was actually right about the article itself. For those who don't want to strain their eyes rolling them here's a quick summary: superannuation industry 'expert' claims AU$1 million isn't enough to see you through a comfortable retirement.

There are huge problems with the article but the comments give me hope for my fellow Canberrans. Now, I have several issues with the article that aren't brought up (mainly to do with the fact that a comfortable retirement has less to do with how much annual income you have but how well you planned and how intelligently you spend the money you do have) but this is a list of what came up in the comments:

  • He's got a vested interest in scaring everyone into putting more money into the superannuation industry because it means he makes more money (including a comment on how they and financial planners have an inherant conflict of interest). This comment just kept coming up over and over
  • That the situation won't change, in particular that official interest rates with stay artifically low
  • Disagreement over the average age predicted by the government's Productivity Report, arguing that the life expectancy is unlikely to be that high (though few details as to why the methodology is wrong, except that they think junk food and obesity will be a bigger problem than the report accounts for)
  • The simple difference owning your own home can make
  • The comments give a considerable amount of weight to the comments by the Grattan Institute that retirement depends on individual circumstances
  • The fortnightly amount $1 million over the period of time works out as is x1.5 the pension, which is a safety net and not meant to be luxurious but they wouldn't be in poverty, and several of the comments call him out by saying they would think every week is Christmas if they were getting that much
  • What is actually said in the article needs to be put in the context of the current discussion over superanuation and what should no longer be tax-free
  • It says more about the quality of his returns - minus fees - than it does about the actual amount retirees would get

None of these points take a good look at what actually constitutes 'comfortable' but I was hugely impressed by the fact that no one seemed to be buying what he was selling.

 

Wow, a phone plan for fifteen bucks!