Sounds like communism to me. The less government meddles with superannuation, the better.
Poorly performing funds would not survive if not for the apathy or ignorance of their members.
I think you and I have a different definition of taking responsibility.
Wow.
Reading a lot of good and bad information here.
I am no guru at super but after some research have a great financial planner who is worth a bit more than his weight in Gold.
He hates Industry funds with a passion and has shown why several times by running comparisons. Their fees are lower but as was alluded by someone early in this thread their returns can often low also. I am a mid range investor for risk and we still continually very well thanks.
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15% on earnings, still hardly that punitive.So, if a person has say over $1.6m in an industry fund, under the new rules, does that mean they need to pay tax on the excess?
it only really applies after retiring. Up until then everything is in accumulation phase and you are paying 15% on earnings anyway. Once retiring if you have over 1.6, (or retired at the point this becomes operative), then you can only keep 1.6m of assets in the pension part. Excess moves (or stays) in accumulation phase and you pay 15% tax. You also have the choice of taking all or part of the excess as a lump sum - if you don't have other investments, you can then take advantage of the tax free threshold for personal tax. All in all it is not such a bad thing.So, if a person has say over $1.6m in an industry fund, under the new rules, does that mean they need to pay tax on the excess?
15% on earnings, still hardly that punitive.
it only really applies after retiring. Up until then everything is in accumulation phase and you are paying 15% on earnings anyway. Once retiring if you have over 1.6, (or retired at the point this becomes operative), then you can only keep 1.6m of assets in the pension part. Excess moves (or stays) in accumulation phase and you pay 15% tax. You also have the choice of taking all or part of the excess as a lump sum - if you don't have other investments, you can then take advantage of the tax free threshold for personal tax. All in all it is not such a bad thing.
I can see people going back to what used to happen often, taking lump sums and frittering it away. Or, helping out their adult kids to buy into a re-energised property market, as if it needs a further boost.
It's not quite all agreed as yet though is it?
The other option is of course to take it all out, put it into place to live in and draw a pension from the government as you the have no assets other than the family home .... not that I think that's a good strategy ... although once people get to certain age many get a feeling they've paid all their taxes and entitled to something back ...
I think 1.6 (and more if there are two of you), is more than enough to provide an adequate pension, so I don't think there is a problem in taking out the excess and spending it. But then I am a spendthrift at heart.I can see people going back to what used to happen often, taking lump sums and frittering it away. Or, helping out their adult kids to buy into a re-energised property market, as if it needs a further boost.
It's not quite all agreed as yet though is it?
Meanwhile our top public servants to avoid most super changes.
Elite public servants to escape Morrison's super axe
3. At what point is a SMSF worth considering?
Do people with an SMSF still keep some nominal money in retail/industry fund to access insurance? From my research death/TPD through the larger industry funds is waay cheaper than other direct options.
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With the long term uncertainty in regards to what changes will happen to superannuation, we have invested outside of super so we can retire when we want to and not when the Government of the day says we can.