Here in Australia there is a problem. It’s a big problem, nay, a Super problem, with a lot of super big consequences. Like the Treasurer Joe Hockey, I’m talking about compulsory superannuation and retirement in Australia.
For those of you who don’t know a lot about superannuation, let me give you a run down.
Imagine that you are a strapping young lad entering the workforce for the first time after school. Let’s call you G Stephenson, no that’s too obvious, let’s just go with Glen S.
Glen S gets his pay at the end of the week, only to find that close to 10% of it is MIA. He heads down to the pay master and says – “Hey pay master, look at this mistake on my pay slip, you short changed me 10% of my wage! When are you paying me the rest?”
The pay master looks at Glen incredulously and says – “Glen, at the behest of the government of the Commonwealth of Australia, we’ve taken that money out of your pay and given it to an investment fund on your behalf.”
Say what now? The government took my money?
Well, it turns out that in 1992 (way before Glen was able to vote or have a say in this nightmare future) a couple of dudes in suits named Paul Keating (Prime Minister – featured below)
& Bill Kelty (Union fat cat) decided to take pay rises for all Australians and give it to big funds to look after on everyone’s behalf. On top of that, each subsequent year the amount of pay rises you earned included an ever increasing chunk of money that was taken from your pay and added to these big funds to look after on your behalf.
The madness finally slowed in 2002/2003 where people were missing a full 9% of their pay year on year into this compulsory savings plan known as superannuation.
Unfortunately the madness kicked off again in 2013 and won’t stop until 2022 when the percentage of pay being confiscated will be 12%.
It’s a little bit like putting money into the bank each week and when you go up to the teller to withdraw some money (for say a holiday or to pay down some debt) being told that you can’t access it for another 40 years. You walk away feeling like you have just been robbed (a lot like what happened in Cyprus and lots of other countries and is still happening).
Still, at least with superannuation you have a definite time when you can get your money back and then you can do what you want. Except when in a few years time you sit down for a quiet night of watching the budget on TV, only to hear some turkey who hasn’t got a clue about money tell you (and all other Australians) that instead of being able to get your money in 40 years, is it going to now be 42 years.
You turn to your partner and say – “Sweet baby Jesus, did you hear what that clown just said? Surely he can’t be serious”.
Unfortunately, not only is he serious, but he goes on to say that you also can’t pull out your money as a lump sum, but instead you will get it paid to you in instalments – kind of like a wage.
Hopefully I haven’t lost you yet, as there is quite a bit more to go. Just to recap in short form for those of you that haven’t read the whole thing – The government has privatised the Australian retirement scheme, where big funds and investment banks get to gamble with working mum and dad’s retirement money on the stock market. The people aren’t allowed access to their own money until the government says so, and there entire thing was implemented without consultation with the people of Australia (that’s right, not even a referendum).
OK, cool – everyone up to speed? Wayne Swan & Peter Costello, you can both go have a nap now, this is already way over your guys heads.
Now you might be wondering why this system was put into place – and this is where it gets really insidious. You see the fundamental principal behind the economy is fatally flawed.
None are more hopelessly enslaved than those who falsely believe they are free.” – Johann Wolfgang
The entire model is predicated on stealing from future generations and is based on an expectation that the economy of the future will always be bigger (inflation – see the video above, it’s a must watch) than what it is today. Ergo your children will be better off and therefore they will be able to pay for it without too much difficulty.
Have you heard of a pyramid scheme? Well it’s very similar. For it to work lots of new people need to enter in at the bottom so the people at the top can make lots of money.
This is where I start to really have a problem with the system.
With the current amount of people entering retirement (baby boomer generation) being so large, the tax base of all the other generations just isn’t big enough to support all the extra social services to support the aging population as well as continue to invest in future generations.
Oh, and did I mention that a large amount of the people retiring right now, have assets worth hundreds of thousands, and in some cases even millions of dollars to their names. Yes that’s right, these same people that have obscene levels of wealth when compared to the likes of me and others at my age, expect my generation to work many years longer than they did, suffer a massive tax burden and accept decreased services all while they sit back drinking tea in their mansions.
The nicest thing I can say about the situation, is that I have a few concerns regarding the imbalance of wealth distribution. If I was to say exactly what I thought, then many would likely accuse me of being an anarchist as I can see a day where fringe parties really start to get some traction – Nigel Farage looks like a great role model to me.
To say I am disillusioned with the major political parties in Australia would be putting it mildly, and when I read dribble like this from the main stream media it really grinds my gears.
I was born and raised into this compulsory superannuation system and I have no desire to participate in it, and I certainly never agreed to it. I never remember the Australian Constitution stating that the government had the right to tell individuals how or when people could spend their own money. Compulsory superannuation is a blight that panders to the lowest common denominator of society. There needs to be an option for individuals to opt out – we are supposed to be a free people after all, with the obvious exceptions of:
- Mandatory jury duty
- Mandatory voting
- Mandatory support for the wealthy – sorry, I mean compulsory superannuation…
I could probably deal with superannuation without complaint if they stopped moving the goal posts all the time. One week you can do this, the next it is something else. All it says to me is that the government can’t be trusted and that the more money that goes into this system, the more control the government has over the population. In the end it will equate to more people that will be reduced to old aged wage slaves to pay for someone else comfort/perks.
To put it bluntly – The government can go and shove superannuation where the sun doesn’t shine. If super is here to stay and I continue to be undemocratically forced to participate without an opt out, then here is my thoughts:
- No more pensions and crazy levels of welfare. If I have to pay for my own retirement (in this oppressive tax regime), so can everyone else. I don’t care if you are 60 right now – too bad. Your country needs you just as much as your tax paying children / slaves – one wage slave is as good as another to me.
- If I have to work until I am 70, 80, 90 or 100 (whatever the government changes it to), so can everyone else. Including the politicians that set the policy. I hear we always need more fruit pickers or front line defence personnel.
Joe Hockey has been right about one thing though – the age of entitlement does have to stop, and it needs to start with the baby boomer’s who are retiring now. You can’t have an entire generation (their children) suffering just so you can enjoy lavish lifestyles whilst on government welfare – it’s just not how you play cricket.