The Australian Productivity Commission (Productivity Commission) released its latest annual pension report on January 10,2019. In this report, the Committee concludes from a wealth of data:
If an office worker chooses a pension business that doesn't perform well enough, his pension earnings may be reduced by a full half a million when he retires.
Therefore, the committee strongly recommends that when Australians start working, federal government should provide them with a list of 10 best performing pension, for them to choose from.
opposition party Labour, however, disagreed, arguing that the move would lead to less competition in the pension sector and the dominance of some firms, to the detriment of industry development.
Various debates, surveys and legislation, around the pension industry are common topics in Australia.
pension fog
The Australian pension industry, which absorbs government's "compulsory" savings for all workers, has a vast but opaque pool of funds that has been shrouded in fog.
The four largest Australian banks, the Federal Bank of Australia (Commonwealth Bank) and the National Bank of Australia (NAB), were exposed in early 2018 to continue charging pension management fees to deceased clients. The pension sector AMP australia's largest wealth manager was subsequently found guilty of serious fraud, AMP admitted to charging for services not provided and lied to the australian securities and investment commission (ASIC)20 times.
Moreover, the variety of pension is often dazzling to ordinary people: retail pension 、 industry pension 、 public sector pension 、 corporate pension and self-management, etc. They vary in rules and have advantages and disadvantages, making it difficult to choose.
Together with this year's pension report, which points out that the differences between companies are so large that they may even cause Australians to retire with less than half a million dollars, pension fog seems to be getting deeper.
How important is pension really?
To Australian government, pension is an extremely important part of the national live a retired life system and directly relate with social stability.
The huge amount of pension money and the attendant high administrative costs is a coveted and struggling market share for pension companies.
While "pension" is important to individuals ," the live a retired life "itself is more important. One fact you need to know if you think pension will be the main source of income after your retirement is that your pension "is probably not enough for you live a retired life ".
What can we do?
Consolidation of all pension
A lot of us don't work in one company all our lives, so it's likely that you have several pension accounts under your name.
If you have the same situation, it is best to combine these pension into the same fund. Because each fund will independently charge management fees, insurance and other fees, while repeatedly paying several fees is really not very cost-effective.
You can check out the best performing pension, before you merge the pension to make sure that the one you choose is the best for you. The Australian Securities and Investment Commission (ASIC) recommends that people look at the performance of pension past five years at least, not just the latest, before making decisions.
Annex: Top 10 pension in 10 years as of June 2018
Figure: superguide.com.au
Customize your own pension value-added strategy
Certainly, putting all pension in the same fund doesn't mean you' re "putting eggs in one basket ".
The essence of pension is an insurance investment fund, and most pension allow you to manage the allocation of funds yourself. You can set a value-added strategy for your pension —— configure high-risk, high-return projects, or low-risk, low-return projects, or both.
At the same time, for the insurance items in the pension, you can also read the default insurance terms carefully, remove some items that are not very suitable for you at this stage, or that you have been well guaranteed by other insurance, so as to maximize the use of your pension to achieve the goal of wealth appreciation.
Expand other channels for accumulating live a retired life funds
pension is important, but it's not realistic to put all your retirement hopes on pension, as mentioned earlier. To be able to retire comfortably for 30,40 years or more, in addition to taking good care of your pension, you need to positively other sources of wealth as a young person and earn enough live a retired life money for yourself.
What channels can accumulate wealth? To sum up, it is nothing more than "increasing revenue and reducing expenditure ".
"Cut Down "- Saving
If you're a "moonlit family" who spends all salary, where do you get the first barrel of gold that accumulates wealth? Therefore, saving as much as possible is the first step in accumulating wealth. In Australia, you can try these tips to help you save money effectively:
- Automatically transfer savings to another account
Do you often make up your mind to save and fail? You can actually set yourself a weekly or monthly saving target and set it up in a bank account, automatically transferring the savings amount to another account every time you send it salary ,—— something like a pension "compulsory saving ".
- Change the pay pass of bank card to enter password
"Beep" the bank card, take things to go, australia's pay pass system is extremely convenient, but it may give you a "thing without money" illusion, but also let you unconsciously spend a lot of money. The "password" process tends to give you a deeper impression of the amount spent, and can be more cautious and "heart-wrenching" when spending.
- Set the bill to automatic payment
Modern people's daily life is very busy, everyone is very forgetful. The bills in the mailbox received a stack, but often forgot to pay, resulting in a final fine. It would be better to set up all the usual bills as automatic payments to avoid the "late fee ", which is both disturbing and pointless.
Open Source - Investment
When we have a saving in our hands, we have to find a way to make money, so that we can achieve the purpose of accumulating wealth. For Australian workers, try to do these things:
- To restructure your mortgage
For people with house loans, it's a good habit to keep an eye on how to improve their loans.
A good loan broker can create a lot of wealth for you through loan restructuring. Changing your mortgage to a product with better interest rates, liquidating house value-added, or packaging other loans will certainly help you improve your finances significantly.
- Choose the right investment product
For office workers who still need work and limited energy at ordinary times, it is very important to choose the right investment object. Ideally, investment products suitable for office workers should have at least these characteristics: they don't require much time and effort, have a strong ability to resist risks, deliver sustained and regular returns, and have a long and reliable market record.
That's why, at Ironfish asia pacific, we' re pretty sure long-term investment is a way real estate best fit for most australians. The Australian real estate has a record of more than 100 years of government, long-term scarcity due to growing population and stable rental income; in addition, the Australian real estate is easy to leverage, relatively low-risk-risk, and does not risk "losing money" to investors like stocks or businesses.
- Find a good mento
There is often a "blind spot" in investing: the misconception that investing is something that doesn't require learning or that you can learn by yourself. Many people know clearly that learning to swim, to learn piano, to learn golf... All need to find a coach first, then the same, learn how to manage their life savings, of course, more need an experienced person to guide.
Many of our investment strategists at Ironfish asia pacific are themselves successful investors in a portfolio worth millions or even tens of millions of real estate who have accumulated experience over several rounds of market cycles and are keen to help other investors achieve their wealth goals and live a better life. Whether you're a first-time homeowner or a real estate investor, Asia Pacific Group's investment strategists will help you buy real estate. from the strategic perspective of Fortune Life
Attention live a retired life, Starting today
To the chinese in australia —— especially the first-generation immigrants —— they will inevitably feel at a loss in the face of a completely different live a retired life culture and live a retired life system. Many people are not only unprepared for their retirement, but may not even realize that they are in a state of inadequate preparation.
Some people only trust their cash income and deposits, but if they don't invest actively and intelligently, the hard money will only depreciate quietly in the bank over time.
And some people think that australia is a "high-welfare state ," and that's entirely up to pension and social welfare, but when you really do some research and calculation about it, you will find that all this can only ensure that you barely squeeze into the subsistence line.
Each of us has an old day, which is a natural law that can not resist. But what we can do is prepare ourselves from a young age, so that when that day comes, we can still be elegant and calm.