Retirees in super crisis fear...(Australia)

[SoCalDem]

Looks like we are not alone in our fears :(

http://finance.news.com.au/common/story_page/0,4057,8817023%255E462,00.html

Retirees in super crisis fear
By Jim Dickins
29Feb04

Governments face a potential funding meltdown as hundreds of thousands of self-employed Australians retire without adequate savings. Federal Treasurer Peter Costello announced measures last week designed to ease pressure on the public purse created by Australia's ageing population. But industry representatives say the package contained little to benefit one million Australians who are self-employed. Research conducted by The Sunday Telegraph reveals fewer than one-in-five are contributing to a super fund.

That means the Government could end up meeting some of their retirement costs through the aged pension. Treasury forecasting predicts that by 2042 falling birthrates and longer lifespans will lead to an imbalance between retirees and workers, whose taxes help pay for their care. If nothing is done the problem will turn today's $4.6 billion budget surplus into a $40 billion deficit, undermining the nation's economy and future prosperity.

...snip.....

"You'd hope people in small business would build up their company to the stage where it is their super but if that doesn't work out and they don't have much they could be relying on the Government," Mr Bruining said. Superannuation is compulsory for ordinary workers. They must contribute a minimum 9 per cent of their salary. Employers withhold the amount and make a contribution themselves, leaving more than 90 per cent of workers with some form of super. However, the Association of Superannuation Funds argues even that is inadequate to maintain lifestyles during retirement.

The Government has tax incentives in place worth nearly $600 million per year to encourage retirement saving for the self-employed. They can claim capital gains tax exemptions on the sale of their business and tax deductions on any voluntary super contributions they make. However, tax statistics show only around 180,000 people are claiming those deductions, a worryingly small proportion of the more than 1 million who would be entitled to them. COSBOA national spokesman Tony Stevens said the Government's retirement package failed to address important problems faced by small business.

....snip.....

This report appears on NEWS.com.au.

[Sugarbleus]

1. I've suspected that

(based on some other newssites I've been reading)several nations will/are experiencing many of the same things we are; albeit with their own particular details.

Are there too many people on the planet to sustain life I wonder? Or did the governments simply neglect to prepare for these eventualities?

[SoCalDem]

2. They just used the money we entrusted to them

as their own piggie banks for many years.. They kept "intending to put it back", but they could not stop themselves from continuing to steal more..

They probably thought that the booming 90's would continue long enough to "pay it back", but their luck ran out :(

They are thieves.. and we are screwed..

They, however, will never want for a thing.. THEIR old age is secure... thanks to us :(

[Sugarbleus]

9. Frownie face is right! Thats not good news at all... n/t

[rooboy]

3. Australians are being told that retirement is no longer an option...

unless of course you're a current federal politician in Australia. They're set for life with a parliamentary pension.

[Crachet2004]

4. It is going to be worse than that, over here,...

If we let it happen. The GOP is already trying to drive a wedge between the generations on the issue of SS.

Once we are in power again, I think we should take every penny they have stolen back. And I think it is time for some Ceo's and their political flaks to do some serious prison time, without parole, in a serious prison-not a country club!

The GOP always targets the weak, just like all bully's and criminals do!

[rfkrocks]

5. Tell it likeit is!

Oh if only people would listen to what shrub said-benefits are secure for people at or near retirement-The media said that statement was bush crticizing greenspan-make no mistake ,if he is recrowned in 2004, no one in the baby boom years and younger will receive anything to retire-Thanks US media! You are so right he is a big bully!:mad:

[loudnclear]

6. As governments become more and more conservative...the meltdowns

will continiue. They are not about public safety nets or social justice. Just money and safety and protection of the wealthy and mostly white...all over the globe.

[SoCalDem]

7. Do they really expect people to live on NOTHING??

Even a conservative MUST realize that there has to be some kind of income for everyone, or there will be anarchy.. There is not enoough concrete in the world to build walls high enough, to protect the "ruling class"..if they continue cheating their people :(

[JPace]

8. Yes...

"Just money and safety and protection of the wealthy and mostly white...all over the globe."

The wealthy also want the children of the underclasses to
use in the military for fighting their oil wars while their
children go to Ivy League colleges and inherit family wealth.