IT was a shame to see Keating struggling due to his age, IF he was 20 years younger he would be giving everyone some serious stick! Give him credit, he started the super scheme, and is proud of it. And i think most of us like it too! For the record i don't think the rate needs to be increased. Round it off to 10% and be done with it!
I did a simple calculation based Start Working at age 20 with a salary of 30k, Running up to 65 where you have a salary of 118k, with 10% super cont each year and an average return on investment of 7%pa and you will have 1,653,260 for retirement. Not too Shabby! ( OF course not adjusted for inflation but should technically apply equally to all sides of the equation.) **
The alternative is that we end up in a more state funded controlled pension retirement system. And it will become like in Switzerland where most people rent for their entire lives. Don't have a house to eat, and only rely on their pensions and super or savings. I think it makes more sense to keep the super at the current levels and allow for more options like home ownership, other investments etc
Ok forget the perfect world! I forgot the insurance premiums, fund fees, taxes, ......
