Superannuation Discussion + market volatility

[mrsterryn]

I deal with a lot of older people and currently you have to have had a pretty tough life to not be a home owner.
However, even lots of professionals in 40s are now struggling to get on ladder.

Not sure "tough" is right just difficult to obtain when there has been a divorce
Single parent , no child support, not wanting to rock the boat about child support due to my decent Commonwealth superannuation and not wanting to share. Ending up having to rent
That was well over two decades ago.
Fortunately now do own again and have reasonable income
I think for some people superannuation may end up being cashed out for purchase of a home and the having total reliance upon the Age Pension with the possibility of still having a mortgage
There is no penalty in doing that

 

[JohnK]

How long does it usually take for superannuation statements to be released after 30 June?

My super balance has increased by around $2000 but not sure if that was all contributions or some earnings as well.

 

[CaptJCool]

Not sure "tough" is right just difficult to obtain when there has been a divorce
Single parent , no child support, not wanting to rock the boat about child support due to my decent Commonwealth superannuation and not wanting to share. Ending up having to rent
That was well over two decades ago.
Fortunately now do own again and have reasonable income
I think for some people superannuation may end up being cashed out for purchase of a home and the having total reliance upon the Age Pension with the possibility of still having a mortgage
There is no penalty in doing that

Sounds like my story....
except I was paying a bucketload of taxes, non-concessional super, child support and then an apartment loan, rates and private health and utilities ...(totalled around 85-87% of income) plus then spending on children when they were actually with me! And this actually without a car for a decade !

at that point I was living on the smell of an oily rag, and then eventually the loan was paid out..... and now it’s an abundance.... even if medical out-of-pockets (GST free) as you age go up and up! Makes some sense to prune back their income taxes to nothing but it seems cough about that we highly tax the people who are at the same time, paying home loans and raising children let alone running a car or two !

 

[mrsterryn]

Ok so CPI has come in for the defined benefit.
3.5 % for the next six months. For the twelve month period I think the increase has been over 5%
For superannuation, continuing in this thread , what is a reasonable return for a year ?

 

[andye]

Sounds like my story....
except I was paying a bucketload of taxes, non-concessional super, child support and then an apartment loan, rates and private health and utilities ...(totalled around 85-87% of income) plus then spending on children when they were actually with me! And this actually without a car for a decade !

at that point I was living on the smell of an oily rag, and then eventually the loan was paid out..... and now it’s an abundance.... even if medical out-of-pockets (GST free) as you age go up and up! Makes some sense to prune back their income taxes to nothing but it seems cough about that we highly tax the people who are at the same time, paying home loans and raising children let alone running a car or two !

Unlikely to get any party to suggest any significant taxes on retirees though. The relatively small issue of franking credits turned out an electoral liability.

 

[CaptJCool]

Ok so CPI has come in for the defined benefit.
3.5 % for the next six months. For the twelve month period I think the increase has been over 5%
For superannuation, continuing in this thread , what is a reasonable return for a year ?

-2.5% ?

The long term average probably 6.5-8.5%

 

[QF WP]

It has been confirmed: Superannuation fund returns ended the financial year in negative territory for only the fifth year since the inception of the superannuation guarantee in 1992. According to the financial year assessment issued by SuperRatings the median balanced option is estimated to finish the financial year at negative 3.3% largely as a result of market turbulence driven by factors such as the war in Ukraine and the continuing pandemic....

Confirmed: FY super returns turn negative - Financial Newswire

It is now confirmed, the 2021-22 financial year was overall negative for superannuation fund returns impacted by market volatility.

financialnewswire.com.au

 

[QF WP]

How long does it usually take for superannuation statements to be released after 30 June?

My super balance has increased by around $2000 but not sure if that was all contributions or some earnings as well.

The Trustees of each superannaution fund have to issue statements by 30th September (so 90 days). They need this time to audit the transactions, unless they get dispensation from ASIC/ATO for a delay (the date of which must be disseminated to fund members).

 

[CaptJCool]

Well final figures are in for June 2022...

there’s around 65,000 people turning 65 every quarter yet figures are static
(and of course, deaths)

 

[mrsterryn]

Well final figures are in for June 2022...

there’s around 65,000 people turning 65 every quarter yet figures are static
(and of course, deaths)

View attachment 290706

So less people are going onto Age pension?

 

[CaptJCool]

So less people are going onto Age pension?

Yes
significant lower numbers Inbound
something like 6,000 less in June quarter 2022 than March quarter 2022

in effect, we are currently only replacing the deceased.... total per quarter of these is about 32,000 of which at least 75% were age pensioners.

turn 66.5 = 65,000
deceased = 30,000 of which 24,000 were age pensioners

41,000 self funded retirees, 24,000 new age pensioners
rate of entry is approx 36%

 

[cove]

We do encourage our staff to read their superannuation statements. Many don’t.

 

[Brissy1]

turn 66.5 = 65,000
deceased = 30,000 of which 24,000 were age pensioners

41,000 self funded retirees, 24,000 new age pensioners
rate of entry is approx 36%

41k/24k, what about some of the 65,000 who on turning 66.5 don't then retire

 

[ramboflyer]

We do encourage our staff to read their superannuation statements. Many don’t.

I'm retired and check mine on-line nearly every day! Not good last few days with the US markets in free fall.

 

[mrsterryn]

41k/24k, what about some of the 65,000 who on turning 66.5 don't then retire

Not retiring doesn't preclude being on age pension.
@CaptJCool do you have a breakdown of how many are part pensioners ? I would imagine that would be significant

 

[SYD]

So less people are going onto Age pension?

Which was always the intent of super. Despite successive governments meddling with it!

It really irks me when I hear or see pollies or media saying/reporting super “costs” taxpayers x,y,z. No, that’s just the Dept of Finance twisting the language around the “opportunity” to increase taxes….

 

[CaptJCool]

Not retiring doesn't preclude being on age pension.
@CaptJCool do you have a breakdown of how many are part pensioners ? I would imagine that would be significant

Yes


plus Employment earnings



Plus renters - strong levels of fully owned no loans principal residence by age pensioners

 

[mrsterryn]

@CaptJCool interesting to see that the amount of DSP recipients in numbers are higher on the undetermined/manual rate.
Do you know if the PLS now known as the Home Equity Access Scheme is included in that manual rate ?

 

[Jacques Vert]

A company called Art Index was mentioned some time ago.

Does anyone have experience investing through them?

 

[Buzzard]

A company called Art Index was mentioned some time ago.

Does anyone have experience investing through them?

I've never heard of them.
Outside of super (and cash) I hold direct shares and a couple of Vanguard ETF's.