How Australians are losing Billions of Dollars through Compulsory Superannuation

Some people may love Superannuation, and others, like me, will hate it. Now, I’m not that proficient in the tax and Government world, but I do care on saving my own money.

But honestly, I think Compulsory Superannuation is a load of cock and bull, and I will be able to make more money without than with it, especially when you receive an email like this.

SuperEmailSummary

This is my example:

I started a new job that would only last a few weeks part time, so I set up a Virgin Superannuation account to put my Superannuation payments in. Here are my figures up to today.

 SuperBalance

This is my account balance and it shows that my current balance is $866.50.

My Point Superannuation is cock and bull

Now, let us have a closer look on how much money my employer has actually paid me in superannuation.

SuperTransactionTable

 

I’ve had four payments and this is shown where the dates are listed under Payroll Date. It totals to $1021.67. So according to this, by using Virgin Superannuation I have lost somewhere along the lines of $155.17. Where has this money gone?

Here I am thinking by the time you are ready to retire, you will have a nice positive balance that would have incurred a lot of interest. However, in reality, with Superannuation you would end up having less money in the account by the time you are ready to retire than what you have initially deposited throughout your working life thanks to account keeping fees, management fees and contribution tax.

So far, I have spent $24.30 in management fees, and $153.25 in contribution tax, which is a total of $177.55 in lost money. So for investing my Superannuation for 4 months, I have made a negative investment.

Why is Superannuation compulsory?

So why is Superannuation compulsory? Why can’t my employer give me that money, and why can’t I invest it myself? If I have invested that $1021.67 myself, even to just put it in a savings account earning 3.5% (which is low), I would have made more money, than I would have lost. Why can’t I invest that money myself, and instead be forced to pay account keeping fees and management fees just to give someone my money?

What are your thoughts regarding compulsory Superannuation? Are you for or against? Have you actually made any money?

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