superanuation all but worthless.

You would be better putting your money in a bank account or even better paying off your mortgage.

Let me explain why.

I went to Suncorp today and picked up a list of the returns on their Super Funds

Last year to May 08 the return on their funds went from a negative 34% on their Property fund with all Funds in losses except their Cash Fund which had a profit of 5%.

They do not yet have the June 08 figures which will be even worse. Even over a 5 year period most funds did not keep up with the stated rate of inflation and only 2 kept up with Money Growth over the last 5 years. The fund managers are being well paid for terrible results.

But worse still. Inflation is eating away the purchasing power of all Superannuation.

Even if you believe the 4.5% figure which seems to be an understatement to me, then someone with $100.000 in super just lost $4,500 in purchasing power this year.

In fact, most Super contributions are a total waste, as inflation goes up, the Annual contribution is completely lost. It just keeps the investment up with inflation.

There is virtually no way that most Australians will ever be able to retire on their Super Fund whilst inflation continues over 5 %.

Yet, to stop inflation, the Reserve bank must raise interest rates and break the back of the average working family which is already drowning in debt.

We are in a bind and our leaders have no idea what to do.

One thing's for sure, paying money in to Super is a total waste. It would be much better used to pay off the mortgage and the average home be considered as retirement savings.