A rather scathing report on Australia's Super system.

Shaddam IV · Oct 26, 2012

http://www.news.com.au/money/supera...rement-nightmare/story-e6frfmdi-1226504013379

The Cooper Review's final report was delivered to the Federal Government more than two years ago. And while it managed to outlaw some of the blatant rip-offs that had infected the system, improved regulation, and created a low-cost default option for those disinterested in taking an active role in their superannuation, many of the problems remain.

Fees are still way too high. Performance has been woeful. The system isn't a retirement or pension plan but rather a badly designed investment scheme. And governments continue to tinker with the system, particularly its tax treatment.

Despite the abysmal performance of most super funds in the past five years, the fee take for the industry has continued to grow.

According to research by superannuation intelligence group Rainmaker, the fee take by the superannuation industry has outpaced inflation, even in the years since the 2008 meltdown on financial markets that has seen most account holders watch their retirement balances retreat.

Read more: http://www.news.com.au/money/supera...re/story-e6frfmdi-1226504013379#ixzz2ARtMcN6d
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More than 30 per cent of the $1.4 trillion in funds under management in the Australian superannuation industry is now in self-managed super funds. Given those funds are controlled by just 10 per cent of account holders, it is clear that it is the richest Australians, disillusioned with the performance of the industry, who have opted out of the system and elected to take matters into their own hands.

That leaves the vast majority of the population middle and low income earners who were supposed to be protected by the system at its mercy.

The cost of running a self-managed fund is at the bottom of the scale, way below the costs incurred by the professional industry. So given the exodus in recent years out of the professionally managed industry and into self-managed schemes, overall costs should have plummeted. That simply has not happened.

Read more: http://www.news.com.au/money/supera...re/story-e6frfmdi-1226504013379#ixzz2ARttPLES
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A rather scathing report on Australia's Super system.

Shaddam IV Well-Known Member Silver Stacker

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A rather scathing report on Australia's Super system.

Shaddam IV Well-Known Member Silver Stacker

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