Superannuation Discussion + market volatility

clifford

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Just read that about 45% of Americans think that it would take a miracle to retire and live comfortably. With the inflation outbreak the numbers are jumping dramatically.
As a retired person, I'd like to see inflation take off here.

Might seem strange to some, but there you are...
 

RooFlyer

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cove

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@clifford at our business we sell products that can have steel ,stainless steel, brass , pvc and various types of plastic. As a wholesaler and a manufacturer in Australia I can tell you inflation is coming pretty quickly. Inflation in food will really hurt the most vulnerable and the cost of fertiliser has rocketed.
 

tgh

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Inflation as a desirable social gift is a fallacious concept , IMO.. others mileage clearly varies .
Rampant inflation is nothing new for many of us , but for every gainer there are many more losers.
 

CaptJCool

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As a retired person, I'd like to see inflation take off here.

Might seem strange to some, but there you are...
fund earnings would then likely reflect this and grow but that’s a difficult proposition as often it’s factored into the share capital gain and if shares aren’t sold can’t be realised not the dividend value vs CPI adjustments on age pensions and defined benefit pension streams, potentially deeming rates
either way the lag time is at least 6 months for the above let alone the baked in wage rises in existing EAs which could push this cost onto consumers well before the next EA is signed

Lucky those on super pensions have usually dispensed with costs of housing, children and cars....
 

RooFlyer

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Inflation on (relatively) small retirement costs Vs increased interest on fixed rate savings. I think some forget the situation of many self funded retirees.

CJC's comments noted.
 

andye

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Inflation on (relatively) small retirement costs Vs increased interest on fixed rate savings. I think some forget the situation of many self funded retirees.

CJC's comments noted.
Agree. Many people feel they don't have the slack in their anticipated budgets to risk equities-though, unless unlucky, they would end up much better off if they could
 

tgh

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My comments were a tad catholic, personally it will be nice to see the pesky fiducary cash component actually earn something.
Passes my mind that in many areas we already have rampant inflation and the system simply hasn't caught up yet.
 

cove

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Yes our accountant uses Sharesight. I look at it a couple of times a month.
With a couple of family accounts we just do it all with Commsec so that keep those couple easy to track.
 

CaptJCool

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MAGIC MONEY TREE


when the Federal government TRIPLES tax receipts and “no-one knew”.
tax receipts have nearly TRIPLED in 20 years

2000-01 $183b to
2020-21 $519.9b


superannuation funds kicked in a whopping extra amount given 18-20% earnings in 2020-21
those $1.7 transfer balance caps must be groaning Under the 15% tax rate haha ....
 

CaptJCool

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The age pension figures dropped yesterday for September 2021.
down nearly 18,000..... hypothesising those 2021 20% returns plus housing valuations had an impact.
the assets test data suggests so
the age pension figures dropped again today and dropped in the December 2021 quarter ...

EBABAE2A-58A6-4ACD-A845-071EF921BFD3.png

so to place into CONTEXT

Already age 65 at Census 2016 3,676,000

At Census 2016, there were 1,299,397 aged 60-64. By Census 2021 August, those now aged above 66 were approx 80% of that group and are now age eligible except for those who hadn’t turned 66 by 30 June 2021 (approx 8% of 20%)

However, the ABS death stats tell us how many died (down to a 5 year split) so we need remove nearly 670,000 for that reason PLUS we need remove the 21.6% not yet reached 66.5 years of age (about 280,000) (recognising some already died and that this is a back of the envelope calculation)


This then leaves about 4 million of which 2.556 million are on age pensions. In effect the entire population increase in the last 5 years of around 350,000 has made no difference to the total age pension figure as departures by death or income or assets test are replaced by a new entrant.



This means about 1.471,000 self-funded superannuation (or other wealth) retirees... (about 1/3 of those aged over 66.5)



As this is an hypothesis, it can be detailed further once Census 2021 figures are released

PS I DID realise after posting that part of the reduction is because in effect, the scheme is “closed to new entrants” because of the age adjustment on 1 July 2021 that extends the waiting period for an additional 6 months
 
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GarrettM

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Apropos of nothing, my Super balance climbed by 25% last financial year. A much bigger increase than usual. Long may it continue*.










*It absolutely won't continue.
 
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Flashback

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Apropos of nothing, my Super balance climbed by 25% last financial year. A much bigger increase than usual. Long may it continue*.










*It absolutely won't continue.
Ditto and has lost about 18-20% of that gain this year for me, at least.
 
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Super has been accumulating at consistently 15% on average since 2008
Last financial year 20%

Fees still less than $120 pa😂

Of course that’s all ink on paper and imaginary unless realised now.
 
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