This is taken from a regular Newsletter that we receive. If this is true, then we are in a lot of trouble. The way the Treasurer was using "Politician Speak" on the Tele last night, I have little doubt that this article is true.
Saturday, 16 May 2009
Why You Shouldn't Invest Another Dollar in Super Before Reading This
By Kris Sayce
In fact, as recently as a few weeks ago we warned you that that the government had begun a secret programme that would eventually rob you of any choices you make about when you retire, how you retire and how much you will have to live from in retirement.
It may have sounded like the stuff of conspiracy theories. After last week's federal budget, it sounds nothing like a conspiracy and more like reality.
So, why did we predict this and what do we believe will happen from here.
Let me be upfront. It wasn't that hard to predict. You only have to look at the upward trend in taxation revenues, public sector spending and the belief amongst politicians that only they know how to spend your money.
And don't forget, it is impossible for a government to actually cut spending. Mainly because they don't have the will to do it, but also because once they become politicians they become focused on implementing an agenda. That typically means spending money on things. And in order to get approval for money to be spent on their pet project they have to support other politicians pet projects.
It is 'binge spending.'
But perhaps the biggest giveaway is the $1 trillion held in private superannuation accounts. At the moment these balances are almost untouchable by the government. It is up to the fund managers and trustees of the funds to decide where the money is invested.
That is a position that no government will allow to remain for too long. Not when there is a $300 billion public sector debt to be paid off. And a $100 billion public sector pension liability to be financed.
Not to mention all the increases in welfare payments that will arise in the next few years. The reality is that the government will introduce more policies that will make it less attractive to be a self-funded retiree. There will be enticements for individuals to swap their defined contribution super plans in return for a defined benefit government pension.
In the short run it will be marketed as "the government helping you to forget about the worries of retirement." In the long run it will be a completely unmanageable liability on current and future taxpayers.
Plus, in the short term, for the government they will get themselves a multi-billion dollar windfall of cash as individuals voluntarily or are forced to hand over their superannuation balances.
Again, if you think this all sounds far-fetched, don't forget that the government has already expropriated the super balances of temporary resident workers. Now that they've completed this test run, the next target is the average Australian citizen.
For all those individuals that have each poured thousands of dollars into Super over recent years thanks to the tax breaks, it is clear that this is money they may never see again.
Because of this, now is the time to properly plan for your retirement. But you should do so based on the assumption that your Super money is gone forever.