I worked in the superannuation industry for a while. I wouldn’t say that super is exactly a scam but it’s a terrible mess and the fees we pay on super in Australia are insane. Basically we have a lot of parasites taking a cut and that ends up making the standard funds poor investments. Median returns on the super funds are around 5.6% pa (over ten years for the standard “balanced” option) at a time when stock market tracking funds have appreciated by over 8% pa. A lot of that is being lost in inefficiencies and fees.
By comparison Americans with a 401k invested in the NASDAQ would have made 17.3% pa over the same period.
We’re getting a terrible deal with superannuation, and it’s our retirements which are being stolen from us.
Where do you suggest people invest their long term money to avoid the scourge of coke bros? If one is to believe the stereotypes, real estate and non-Super investments seem just as likely to face the same problems.
theroff@aussie.zone 6 months ago
Can you elaborate on super being its own scam?
zik@aussie.zone 6 months ago
I worked in the superannuation industry for a while. I wouldn’t say that super is exactly a scam but it’s a terrible mess and the fees we pay on super in Australia are insane. Basically we have a lot of parasites taking a cut and that ends up making the standard funds poor investments. Median returns on the super funds are around 5.6% pa (over ten years for the standard “balanced” option) at a time when stock market tracking funds have appreciated by over 8% pa. A lot of that is being lost in inefficiencies and fees.
By comparison Americans with a 401k invested in the NASDAQ would have made 17.3% pa over the same period.
We’re getting a terrible deal with superannuation, and it’s our retirements which are being stolen from us.
theroff@aussie.zone 6 months ago
Cherry picking an article seems to suggest the US has similar problems www.investmentzen.com/blog/average-401k-return
Australia’s superannuation has improved over time. For example, the MySuper reforns led to consolidation and an exodus of underperforming funds.
A quick search on some of the biggest super funds in Aus shows returns of > 9% in a more equivalent, potentially volatile “high growth” fund.
There are funds that offer lower cost index-tracking products if that’s your thing.
The biggest problem, IMO, is financial literacy which needs to play a bigger role in education.
DavidDoesLemmy@aussie.zone 6 months ago
Are you comparing a balanced option against a 100% stocks option? That’s hardly a fair comparison.
zik@aussie.zone 6 months ago
It’s a fair point but my intention was to bracket the possible returns.
DolphinLundgrin@aussie.zone 6 months ago
Government mandated coke-fuelled gambling parties for investment bro’s
theroff@aussie.zone 6 months ago
Where do you suggest people invest their long term money to avoid the scourge of coke bros? If one is to believe the stereotypes, real estate and non-Super investments seem just as likely to face the same problems.