Evolution of the Australian Pension
The original Commonwealth pension, introduced in 1909, was decimated because of the excessive and uncontrolled spending by successive governments since 1972 and so a new plan was introduced in 1991 that was called the Compulsory Superannuation Fund. In 1909 the annual payment £26/- while wages were £0/6/- per day or £1/10/- per week making the original pension approximatly 50% of the “basic wage” (though the range of the basic wage was wide and the amount chosen was for a semi-skilled basic wage and so there were other wages lower for the unskilled persons). However the original fund had a %payment from taxable income but a single rate of payment was given after the qualifying period (the fist qualifying period was 25 years but was soon reduced to 20 years) –The current retirement income is a set rate of wage rate to be paid by the employer but the payments from the fund depend upon the amount in the fund (this means some will get very little while others may get $1,000’s per week it just depends upon their wage rate and their employment history).
The Current Retirement Pension Plan
Women, casual employees, and employees that have periods of unemployment are most disadvantaged under this current plan as the payments are based upon the savings and their relative earnings during the life of each person’s account in the fund. People who understand the financial market may well be able to gain more earnings as they change the way the account is managed by the fund managers. only those on long term high income will actually receive excellent payments on retirement, though there could be changes made over time as history has proven in the past – changes are a reasonable prospect in the future.
Withdrawls From The Fund Will Diminish The Returns
Since the fund was established in 1991 some of the changes include the right for first home buyers to drawdown funds to purchase their home and we have a new change that because of the difficuties associated with the corvid 19 virus the right to draw down funds is again raised – so the retirement funds purpose is changing to essentially to become a saving plan for government approved draw downs and the residual can be used for your retirement!
Not a good plan at all – as we whittle away bit by bit there will be little left for retirement at all. The government has no plans to retain savings to assist those with insufficient funds for retirement coupled with a financial sector that has clearly proven that it cannot be trusted as was established by the Royal Commission into the financial sector. The inquiry established that billions of dollars were defrauded from the Australian citizens by many dodgy schemes that the financial institutions were well aware could never deliver any benefits to their customers.