16th Apr 2019
Why your retirement income is set to suffer this financial year
Author: Ben Hocking
Superannuation facing a grim year

Despite a recovery in the March quarter, superannuation funds are heading for a disappointing 2018–19 financial year.

Global growth challenges and a loss of market momentum mean that many funds will struggle to make up for sharp losses in the December quarter, according to estimates from leading superannuation research house SuperRatings.

Balanced option returns were largely flat through March as markets were weighed down by weaker economic data and fears of further falls in home prices.

The typical balanced option (defined as an option holding between 60–76 per cent growth assets) returned an estimated 0.8 per cent in March as the share market recovery came to a halt.

The typical growth option also grew at 0.8 per cent following strong gains in January and February of 3.2 per cent and 3.4 per cent, respectively.

While funds have recovered from a horror December quarter, a weakening outlook will make it challenging for funds to make up further ground before 30 June.

According to SuperRatings, the estimated financial year-to-date return for the median balanced option is 3.2 per cent, which so far ranks as the seventh worst result since the introduction of the super guarantee in 1992.

Meanwhile, the federal budget went largely unnoticed by markets, which had already anticipated many of the tax and infrastructure spending measures.

Australians will head to the polls on 18 May, and while super is unlikely to be a defining election issue, there will be plenty of debate around Labor’s proposed changes.

“The federal budget delivered no surprises either for markets or for the super industry,” said SuperRatings executive director Kirby Rappell.

“This is not a bad thing, because often the best thing a government can do is leave super alone.”

“The focus during the election will be on Labor’s proposed changes, which include reductions in contribution caps and the removal of imputation credit cash-outs, which will have a significant impact on SMSFs.”

Mr Rappell said falling home prices combined with weaker share market performance constitute the biggest challenge currently facing retirees.

“Falling house prices have a negative wealth effect that flows through to consumer spending, but they also throw a spanner in the works for many Australians approaching retirement who may have planned on downsizing and adding the windfall to their nest egg.”

How has your super fund performed this financial year? Are you worried your returns may see your nest egg run out sooner than you had planned?

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    COMMENTS

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    Linda
    17th Apr 2019
    11:10am
    There is property and then there are homes. My first wish is for people to be able to have homes to live in. Maybe we should say if people own one house property, that is their home, and if they own more than one house property then they are investors in property. For people wanting to live in a home, and can't afford it, then using super is like spending your cushion savings so you can live in a building. That seems a sensible idea. When people are being priced out of the market all of Australia suffers. We must have a plan to get people into buildings to live, no on the street. Years ago the insititutions for the mentally ill and people with intellectual disabilities were made defunct and those residents were released into the community. That happened with the promise of support services for these individuals. Down the track, several governments later, we have these same people now in some cases homeless. This is a big problem for all of us. Everyone needs a place to live. Once a home is purchased, then the value of property going down does not effect them so much because the market value means all the homes lose their values. If it is an investor in property looking for tax breaks and such, and the value of the property goes down then they could lose money but they in many cases already have a home to live in. It is terrible that first home buyers have to pay so much for shelter, while others make money out of a flawed scheme. To make this a fair situation, changes are needed. I would rather see people living in their own home than others making money at their expense. Since things are so unfair right now, these folks who have to sacrifice their superannuation in order to be able to own a home should be able to or.....they need to get busy and ensure changes are made to the rules around property investments in houses, and make homes for people the goal.
    Old Man
    17th Apr 2019
    11:48am
    Do we need this sort of article? It is big on doom and gloom with no remedy and not what the average retiree really wants to know.
    Jess M
    17th Apr 2019
    12:14pm
    I thank the Labor Party for introducing Superannuation for every worker. It also appears that Industry Super outperforms private super.
    Rather than say what are they going to do for me. Ask what are they going to do for our children and grandchildren.
    It will be good if future generations can afford to buy a home.
    Younger people also want us oldies to start to fix climate change.
    Let us think of the young when we vote.
    porthboy
    17th Apr 2019
    7:37pm
    Well said Jess. It's a shame so many other people only think of themselves
    porthboy
    17th Apr 2019
    7:37pm
    Well said Jess. It's a shame so many other people only think of themselves
    GeorgeM
    17th Apr 2019
    7:50pm
    Actually, OM, I agree and wonder about the timing - there doesn't seem to be any real reason for the doom and gloom suggested. In fact, the share market should improve this year with Trump & China sorting things out somewhat - Trump needs wins before his next run for President. US Fed is also listening to him - I think these two factors are more relevant here. The only instability in the housing market in particular, which is bottoming out, is possible if Shorten wins and Bowen is let loose on us.
    Anonymous
    20th Apr 2019
    5:03am
    GeorgeM, the reason for this is apparent if you think about it. If Shorten and Bowen get away with their treachery, all super funds will lose and all retirees will suffer. This is a precaution so they can claim it wasn't their stupid franking credit changes that caused the loss. They will point to reports like this and say it was happening anyway.
    ardnher
    22nd Apr 2019
    1:05pm
    just looking at Shorten on the campaign trail...he is looking shocking...how on earth is he going to cope being PM (if he wins the unloseable election that is). Scott Morrison looks a fresh as a daisy compaired to Bill.
    fred
    17th Apr 2019
    11:49am
    and its going to get worse if Short on memory Shorten gets in Government and changes the present treatment of dividend imputation credits for SMSF only and cancel negative gearing 1 Jan 2020 . Yesterday Shorten replied to a reporter and lied three times that he would not change the tax on superannuation !! He is clueless on tax and super apart than stealing our savings as fast as he can . At the same time he lets Industry super funds to continue receiving imputation credits but does target them as being " RICH " you cant have it both ways Bill unless of course you tell porkeys
    Mikko
    17th Apr 2019
    12:03pm
    Right said Fred! Shorten lies through his teeth, he also dodged repeated questions on what his climate/ energy policy would cost and expects people to trust him! The media should be all over this but if he is elected some of us will be able to say, well we warned you!
    Blinky
    17th Apr 2019
    2:04pm
    Can u trust someone who lies n who doesnt even understand the policies he is standing for?
    I wonder if he understands the implications of not turning the boats back, the stupid electric cars policies, mediscare issues (again!) And some people still believe Labor will be better x this country!!!!
    Blinky
    17th Apr 2019
    2:11pm
    Fred. R u also going to thank Labor x the franking credits and x not understanding their environmentsl policy and x not having a policy on "stopping the boats?"
    Come on Fred, wakey, wakey. Labor will stuff this country!
    Old Geezer
    17th Apr 2019
    2:30pm
    I'd be very annoyed if I thought my super contribution tax was going to the ATO only to find it was being offset by franking credits so that those collecting a pension from my fund were getting their franking credits but those owing SMSFs accessing pensions were having their franking credits stolen.
    Tom Tank
    17th Apr 2019
    3:23pm
    Blinky the electric car policy is almost the same for both LNP and ALP. Perhaps removing the blinkers might help Blinky.
    Tom Tank
    17th Apr 2019
    3:23pm
    Blinky the electric car policy is almost the same for both LNP and ALP. Perhaps removing the blinkers might help Blinky.
    Rae
    17th Apr 2019
    4:16pm
    They don't have a clue about the consequences. To Shorten all shareholders are rich. It's belief not reality.

    This sort of thinking creates huge problems because it is often based on wrong assumptions.
    Old Geezer
    17th Apr 2019
    4:58pm
    Labor have pulled down their website and I believe are going to use Fact Sheets instead of their propaganda but I haven't seen it as yet myself. Some of the Fact Sheets are an even bigger laugh than Labor's propaganda.
    Circum
    18th Apr 2019
    12:00am
    Shorten s clueless about the impacts of his pinch the franking credits scheme.He is led by the blind but stupidly believes is.Vote at your own peril.
    Circum
    18th Apr 2019
    12:00am
    Shorten s clueless about the impacts of his pinch the franking credits scheme.He is led by the blind but stupidly believes is.Vote at your own peril.
    Keith
    17th Apr 2019
    12:08pm
    Great stuff.....supers stuffed, property is falling off a cliff, share market losses, cash pays zip......
    Do what I did 10 years ago. Left Australia to live in SE Asia on the smell of an oil rag.
    It’s a great life...ocean views, good food, easy living, cheap travel to neighbouring countries AND I have yet to touch my capital. I live on a fraction of the income it produces.
    Sometimes you’ve got to think outside the square.
    On the Ball
    17th Apr 2019
    2:01pm
    So you earned your super in Oz (with all the tax breaks that brings) then P---off overseas to enrichen their economy.
    I hope you dont intend coming back
    Rae
    17th Apr 2019
    4:19pm
    It makes sense when living on only a % of your working income to move to an affordable location. Australia is becoming unaffordable for self funded retirees.
    porthboy
    17th Apr 2019
    7:40pm
    good riddance
    Cowboy Jim
    18th Apr 2019
    10:05am
    OK if you are in best of health, looked at the option as well. Stayed in Thailand for a while looking around; did not particularly like all the expats living there. Most of the ones I met are over there for the younger women available to them even on an Aussie pension. Not really my scene. On top of that I like a wine every day and that is prohibitive in Asia and reasonable here. But to each his own!
    JOHN T
    17th Apr 2019
    12:28pm
    does n;t every one know what grand fathering means and if they do they would not be knocking the proposed changes to to franking credits. For anyone with shares they would need to have at least $1 millon dividends to make a difference and is it not time we stop winging
    about money they should not be getting anyway
    Mikko
    17th Apr 2019
    12:43pm
    No grandfathering for franking credits grab whatsoever and Bowen and Shorten lie when they say pensioners won't be affected - anyone receiving a full or part pension since March last year will be caught in the big Labor tax net.
    Falling house prices will take a further hit and rentals will rise with the 50% increase in Capital Gains Tax and restricting negative gearing to new properties - a house is only new once and it won't be for the next potential buyer!
    Old Geezer
    17th Apr 2019
    1:00pm
    If you have more assets than allowed for the pension then you will be hit by the non refund of franking credits as that is the only area where you can earn enough to live. Off the top of my head that's about $500,000 for a single retiree and about $400,000 for a married one.

    If you have a million dollars in dividends you wont be caught by this Labor policy as all your franking credits will be used so you pay less tax.

    Anyone earning under about $60,000 in dividends will not pay enough tax so they will lose their refund of franking credits. That is not a very big income at all. Above $60,000 and your dividends just mean you pay a lot less tax.
    Sundays
    17th Apr 2019
    3:10pm
    The biggest outcry is those who have a SMSF all in Australian Shares and get a tax free pension. That means that $1.2 million in super gives you an income of $60,000 (mandatory 5% withdrawal) and you want the Franking credits returned even though you paid no tax. It’s welfare for the rich! You might think it’s not much OG, but many would disagree. The rest of us in Industry super with an income stream expect that eventually the capital will run down because super is meant to fund your retirement
    Sundays
    17th Apr 2019
    3:16pm
    Labor hasn’t stated that part pensioners who receive Franking credits won’t get them. You’re figures are way faster OG as you well know. The Asset threshold for a couple is around $850k if you own a home, and higher if you don’t
    Old Geezer
    17th Apr 2019
    4:13pm
    $850K a couple is close to $400 each so my asset threshold figures are for individuals not couples. $400,000 is not a lot of money at all.
    Old Geezer
    17th Apr 2019
    4:16pm
    $1.2 million is not much either. If you have $3 million in super your franking credits will pay most of the tax owing. Also many people would be very annoyed to find they had paid contributions tax and it didn't go to the ATO but was used by the fund instead to offset franking credits. There will be a high court challenge here and it will find that the whole Labor proposal is unfair and inequitable.
    Rae
    17th Apr 2019
    4:21pm
    Pointless buying a new build for rental. There will be no gain, there is no depreciation now and you won't be able to sell second hand housing easily either. For a 2% yield if you are lucky? Forget it.
    Rae
    17th Apr 2019
    4:23pm
    Why should non taxpaying aged pensioners get franking credits if the rules change? That is blatantly unfair.
    Old Geezer
    17th Apr 2019
    4:23pm
    I agree Rae and also most are so badly build one wouldn't want to own one with the problem they would have.
    Rae
    17th Apr 2019
    7:06pm
    I agree. It could be buying a very expensive problem buying into new build apartments.
    Sundays
    17th Apr 2019
    7:14pm
    Rae, because when I did tax returns for low income earners for 10 years, most pensioners did not have many shares and were lucky to get a couple of hundred dollars to pay a few bills. These are the people Labor are looking to exempt.

    I agree that there is a threshhold where SFR are disadvantaged and think there should be a minimum refund amount to make things fairer.

    Those SFR who provided stories to the Parliamentary enquiry of having to sell holiday homes, reduce overseas holidays etc are milking the system in my opinion.
    Anonymous
    17th Apr 2019
    8:46pm
    Sundays is still repeating more ill-informed bigoted crap. Many part pensioners have lots of shares and are very well off. All members of super funds have shares, and plenty of part pensioners have hundreds of thousands in super.

    Conversely, OG is right. Self-funded retirees may have as little as just over $400,000 each if married, and $500,000 if single, and that's NOT enough to generate a decent income. They are saving the nation a fortune by self-funding. It should be the self-funded, NOT THOSE ALREADY GETTING BIG TAXPAYER HANDOUTS VIA A PENSION, who are deprived of franking credits.

    Under Shorten, self-funded retirees are TRIPLE TAXED. They are deprived of pension, and concessions, and under Labor of the small tax refund they desperately need to boost their income to equal that of a pensioner. Few can come even close to the income of part-pensioners and pensioners with maximum allowed income.

    What Shorten is doing is senior abuse on a grand scale. Dishonest. Disgustingly unfair. Cruel, and economically harmful.

    John T, wake up to reality. NOBODY with $1 mil in dividends loses one cent under Shorten. It's POOR RETIREES with a only a few hundred thousand in shares and income LESS THAN PENSIONERS RECEIVE who will be devastated by Shorten's appalling attack. And they SHOULD be getting a fair tax refund given that they are living on personal savings that they paid hefty taxes on while working, and they are contributing up to $50K a year to taxpayers by not claiming a pension.
    Misty
    22nd Apr 2019
    1:43pm
    Not true Miko. I contacted Mike Kelly and was told pensioners are not affected through their super funds, I contacted my financial manager who rang Mr Kelly and got the correct info, too many lies and misinformation from both sides, the press and social media, this is turning out to be a very dirty vindictive campaign, we even have false news on Facebook now against the Labor Party's policy, at least I hope it is fake news and the Coalition haven't stooped that low yet.
    porthboy
    17th Apr 2019
    12:52pm
    Well said Linda. The trolls on this site are abundant and noisy. What I just can't understand is how any pensioner or person on average income can vote for the LNP and expect their lot to improve. Superannuation was not meant to be an inheritance tool. Most self funded retirees are always going to look after what they've already got and vote LNP to ensure they continue to take unearned income from the tax payer via imputation
    Old Geezer
    17th Apr 2019
    1:03pm
    I will still get my franking credits as I earn enough so I simply pay less tax. The more you earn the more franking credits you keep. So the high income earners keep $34 billion in franking credits but Labor wants to steal $6 billion in franking credits from low income earners.

    This policy really hurts those just above the pension asset cut offs and not the wealthy retirees at all.
    porthboy
    17th Apr 2019
    1:33pm
    Why are you worried then?
    Old Geezer
    17th Apr 2019
    2:26pm
    I am concerned that we rhe taxpayers can't afford another 500,000 on the old age pension due to stupid policies.
    porthboy
    17th Apr 2019
    3:49pm
    That's what the system is designed to do. Not give tax free handouts to people with over $50,000 per annum in superannuation payments, which, by-the-way, is also tax free
    Old Geezer
    17th Apr 2019
    4:20pm
    But people earning over $60,000 will just pay no or less tax thanks to their franking credits paying their tax for them.

    Forget super as many self funded retirees today simply don't have any super.
    porthboy
    17th Apr 2019
    7:41pm
    Believe what you will. I'll believe the truth
    Anonymous
    17th Apr 2019
    8:52pm
    Portboy, you are a fool and you have no idea about TRUTH. Only someone totally inept in economic matters wants to steal a few thousand from someone who is currently struggling to self-fund retirement and force them onto a pension that costs the nation ten times more.

    The only tax-free handouts are to pensioners. Self-funded retirees don't get handouts. They EARN their money by investing their own savings, and their franking credits are a refund of tax taken from their income before it was paid to them.

    And as OG says, it's only the poorer who Labor is robbing. The well-off keep their credits as a tax saving.

    Labor's theft will push hundreds of thousands onto pensions and mean millions more is given in TAX-FREE HANDOUTS to people who would otherwise have continued to contribute to the Budget by living off their savings.

    You really are dumb if you don't get that.
    porthboy
    18th Apr 2019
    11:11am
    Judging by your outburst I just won that argument, Thanks
    Anonymous
    18th Apr 2019
    2:37pm
    You appear to be stupider than I thought. Stupid enough to actually think that! And stupid enough to think that money grows on trees and you greedy people can rob the workers and taxpayers blind and there will still be more to steal.
    porthboy
    18th Apr 2019
    4:01pm
    Check your blood pressure!!
    Greg
    18th Apr 2019
    11:11pm
    OAW - "Labor's theft will push hundreds of thousands onto pensions and mean millions more is given in TAX-FREE HANDOUTS to people who would otherwise have continued to contribute to the Budget by living off their savings."

    And the money the government DOESN'T refund will be available to help those people and plenty of others.

    I can't see how you can know all the figures, how much will be saved, how much will need to be spent on the extra pensioners, how does little old OAW know all these amounts. Maybe you DON'T, maybe things will be better for more people overall, and I know things won't be as good for you. So like I've said before maybe it's YOU that's greedy, selfish, thinking about how this will affect you.

    Like someone else on here said superannuation was to be used to fund your retirement, not to be an inheritance for the kids.

    Another quote "force them onto a pension that costs the nation ten times more." TEN TIMES more, really, again where do you get this information, your figures are rubbery.

    Here's another rubbery quote "All members of super funds have shares, and plenty of part pensioners have hundreds of thousands in super."

    Not true, super funds can have money invested in property, fix interest, term deposits even just an at-call account, and how many pensioners/part pensioners have shares, you REALLY don't know, only what you suspect. I know plenty who have non at all.
    Anonymous
    20th Apr 2019
    5:01am
    Greg, ALL working Australians hold SOME shares through their super fund. The funds can hold other assets, but they all hold shares.

    As for the STUPID statement that the money the government saves will fund increased pensions - that's typical moronic Labor Party logic. First, they won't save even a fraction of what they claim, because people will rearrange investments and they are claiming more than HALF the savings from people with more than $2.4 mil - from whom they will get NOTHING because those people pay tax. Their figures are 3 years out of date and the LNP already addressed the issue of high cash refunds to rich retirees.

    Secondly, most who get franking credit refunds get a few hundred to a few thousand - not the tens of thousand they will get in pensions. Taking $5000 to give $20,000 is NOT going to result in benefit for anyone.

    And superannuation is supposed to fund your old age, not be drained in the first five years to compensate for government THEFT. Besides which, who is talking about superannuation here. Most of today's retirees who have savings acquired them through PRIVATE SAVING - not superannuation. And it often WAS intended to provide for their children and grandchildren after they are gone. Why should you get a pension because you spent on goodies, and I don't because I put money away to leave to my kids? That's the stinking vile thieving logic of greedy Labor Party voters - that anyone who didn't blow it all should have to hand it to the lazy spendthrifts who did.

    And yes, the pension WILL cost ten times and more the miserable few thousand most retirees get in franking credit refunds. Labor isn't touching anyone who gets a big refund - only the strugglers with lower asset balances. The average cash refund is said to be only $2000. Even the single pension is more than ten times that.

    I'm not thinking of how it will affect me, Greg, because unlike you I study the impact on the economy. I can quite easily claim a part pension and double my income, while taking - in my case - twelve times as much from the taxpayer. I also have other options to take hundreds of thousands from the taxpayer if I choose to pursue a matter that I now can pursue thanks to recent legal changes. I didn't plan to do that because I am NOT greedy, but if you Labor voters rob me, I will.

    Tell me why, Greg, you support a lying politician taking from people who get NOTHING from the taxpayer except a refund the tax that was taken from their dividend, while people who get an average of a million from the taxpayer over the term of their retirement get TRIPLE handouts and the wealthy, who have more than $1.6 million in super, are able to continue to dodge the tax the LNP introduced by claiming franking credits. Why do you support attacking ONLY the poorer retirees who are saving the taxpayer a fortune by self-funding their retirement? Why do you think people who lost up to 30% of their income in the assets test change should now lose ANOTHER 30% while the rest of the nation loses NOTHING? Can you answer that?

    YOU are the greedy one - wanting battlers robbed, and not having the common sense to see the very obvious consequences of making saving and investment futile.
    Old Geezer
    17th Apr 2019
    1:06pm
    How can we trust Labor after they pulled down all the information on their website because it was completely wrong? I certainly can't.
    porthboy
    17th Apr 2019
    1:31pm
    You never have
    Tom Tank
    17th Apr 2019
    1:54pm
    OG your consistency does you credit but you do expose your bias regularly.
    Tom Tank
    17th Apr 2019
    1:54pm
    OG your consistency does you credit but you do expose your bias regularly.
    Old Geezer
    17th Apr 2019
    2:25pm
    I've got no bias at all. I don't even vote.
    Tom Tank
    17th Apr 2019
    3:24pm
    Voting or not voting is no indication of a lack of bias. Your posts clearly establish a bias.
    Tom Tank
    17th Apr 2019
    3:24pm
    Voting or not voting is no indication of a lack of bias. Your posts clearly establish a bias.
    porthboy
    17th Apr 2019
    3:51pm
    Spot on Tom, also, why should someone who can't even get off their proverbial to vote, have a say in who wins the vote. Show some get up and go and do your duty!!
    Old Geezer
    17th Apr 2019
    4:21pm
    No sense in voting as the outcome has already been decided even before election is announced.
    porthboy
    17th Apr 2019
    6:42pm
    No sense. That's right
    Anonymous
    17th Apr 2019
    8:55pm
    Anyone who rants as you do has no sense, porthboy. Only a dumb fool would claim that a fair refund of tax paid is 'unearned income'. Your selfishness and ignorance is on display.
    porthboy
    18th Apr 2019
    11:13am
    Where's the rant?
    From my end it looks like you're seething!!
    Anonymous
    18th Apr 2019
    2:36pm
    Yes, porthboy, I'm seething that selfish IDIOTS are going to destroy this country with the greed and stupidity. I can only hope the stupid fools who think there's a bottomless pit of money somewhere that should be raided to fund their handouts are the first to suffer and suffer most.
    porthboy
    18th Apr 2019
    3:59pm
    Carry on like that you're going to end up with a coronary!!
    Greg
    18th Apr 2019
    10:56pm
    I've said before OAW that this will not be the end of the world, "destroy this country" - bloody hell you do go on.
    Anonymous
    20th Apr 2019
    5:26pm
    There are none so blind as those who will not see, and unfortunately these deluded fools vote.
    KSS
    17th Apr 2019
    1:38pm
    It seems this article is predicated on people only having Australian shares and property. Surely one of the tenets of good investing is to diversify the asset.
    Rae
    17th Apr 2019
    4:26pm
    Exactly so. Australia shares are looking dodgy too. Most are in financials or mining and both are about to be affected by global events.

    Diversification is a good idea.
    Sundays
    17th Apr 2019
    7:17pm
    I’d be more concerned about a stock market crash than refund of Franking credits
    Anonymous
    17th Apr 2019
    8:58pm
    Diversity to what? After property and shares, there's not much left. Cash and bonds return far too little. Many other investments require people to be investment gurus. Half the population doesn't even know that managed funds and trusts invest in franked shares and unit holders SHOULD be claiming the franking credits.

    I have a very well diversified portfolio, but franking credits still make up 25% of my annual income.
    On the Ball
    17th Apr 2019
    2:04pm
    "Australians approaching retirement who may have planned on downsizing and adding the windfall to their nest egg.” What ROT. (It confirms my suspicions re the leaning of this site...)
    If you are planning to sell your home to downsize, yes (thanks to the LNP by the way!) your home is worth less than it was. SO IS YOUR DOWNSIZED NEW PROPERTY> Dumb!
    Anonymous
    17th Apr 2019
    9:01pm
    Dumb comment! It's the GAP that counts. Sure, if you home falls in value so does the smaller property you plan to buy, but the difference - the cash you planned to live on - also reduces. If prices fall 20%, you yield 20% less cash when you downsize. Probably lose more, actually, because more expensive homes fall more than cheaper ones, and the legal, marketing and moving costs don't reduce.
    Rae
    18th Apr 2019
    8:11am
    Selling into a falling market isn't great. Only the desperate do it. You can lose a lot of capital.
    Rae
    17th Apr 2019
    4:14pm
    The global share index funds have moved into negative territory and bonds are shabby. We could be in for a few years of falling balances. It's hard to say.

    I'm actually waiting for REIT funds to fall so I can enter one at a reasonable price point.
    Old Geezer
    17th Apr 2019
    4:22pm
    I'm waiting for them and infrastructure funds to top out so I can sell.
    Rae
    17th Apr 2019
    4:31pm
    Haha. I didn't touch REITS back when I should have bought. Back in the crash. I made great gains buying foreign share indexes though so those profits are waiting.

    Yes I pay tax too. My investments are not in super. Too much government messing with it these days.

    I'd get a part pension and concessions if I applied. Your figure of 500 000 extra might be under estimated. A lot of people like being independent even when they could receive government support.
    Old Geezer
    17th Apr 2019
    4:55pm
    My thoughts are this non return of franking credits might just be the catalyst that will have people thinking that impendence is not such a good idea any more as they are simply sick of being screwed instead of supported.

    I still have some money in super and franking credits are just enough to pay the fees. Without franking credits it will cost me money to have so if I can get better net returns outside super it is simply not worth having. I earn enough outside super so pay little or no tax thanks to my franking credits paying it for me. However this year I will get a decent refund of franking credits thanks to all the buybacks and special dividends.

    It's such a shame that people can't understand that Labor's franking credit policy is going to hurt those who rely on the extra income and any wealthy people affected will just change their investments as they don't need the extra income from franked shares. The wealthy are laughing all the way to the bank with this hideous policy.
    Rae
    17th Apr 2019
    7:25pm
    Exactly so but only experienced investors can see the coming consequences. Most of them are starting to cash out and sit out or take short positions. Neither party do anything for me nor will their nonsense and messing in superannuation affect me now either.

    I've a share in a family owned 1980s apartment in Brisbane CBD. We bought for family to live in and to rent outside that. It's always been positively geared. The grandkids will have accommodation close to a good uni. When rented it's at at a low income earner rent anyway. Best return was B&B for a trial. I can see why people do that. We doubled the income during the trial.

    With all of this my income would still allow a part pension and concessions if I applied.
    Shorten would crucify me for being a rich bitch ready for scalping. And I'm a unionist Labor voter generally. Maybe not this time. And maybe a pension card would turn me into a more favoured retiree. They seem to really hate independence now.

    Yes a lot of hard working and saving families are going to be hurt by this. The wealthy will just change allocations.

    I worked two jobs, ran a business and saved through frugal living for years to save for my retirement and family. Damned if I'll roll over easily.

    Unfortunately beliefs rather than reality seem to be affecting our politicians and a lot of the population.

    I blame the MSM for the disinformation they spread now.
    Cowboy Jim
    18th Apr 2019
    10:14am
    You might be right there Rae. Govts do not seem to like SFRs any longer - maybe it is time for people with real funds to go and live in places with no pensions and no taxes like the island of Bermuda (Reg Grundy from Aussie TV fame went to live there after making his pile here). He must have known something we missed.
    mike
    17th Apr 2019
    5:01pm
    Well if criminal Shorten gets in he will introduce the Retiree Tax Grab so every low income retiree will suffer. Is Shorten really a criminal? according to the internet he is, just google Shorten and the Chequita mushroom company scandal where he fraudently cost 157 workers their jobs whilst pretending to be working on their behalf for which he pocketed $24000. Also according to an article in the Herald Sun, he is allegedly guilty of raping a 16 year old girl at a youth rally in 1986, Indeed the case aginst him was stronger than the case against Cardinal Pell, but the police decided not to pursue it, unlike that of Cardinal Pell. So who should be in jail?
    Mikko
    17th Apr 2019
    7:24pm
    They didn't even try to locate a woman named by the complainant as a witness. But naturally after briefly reporting all this once, the media turned its back. Imagine if the accused had been a Tony Abbott or Peter Dutton - the headlines would still be screaming "accused rapist!". And actor John Jarratt has been charged over a similar old complaint where apparently police believed the complainant's version.
    All that aside, Shorten lied at least three times when asked yesterday if he was introducing any new tax on superannuation, and did everything he could to avoid answering a direct question about his climate change policy costings. Another day today and he didn't do much better!

    17th Apr 2019
    9:14pm
    Some 350,000 lost up to 30% of their income in the assets test change. Those same people will lose up to 30% of what's left if Shorten has his selfish and unfair way. "
    Can you Labor voters name a single other group of Australians who have lost up to half their income in less than 3 years? And NONE of those folk were 'wealthy'. They were poor enough to be deemed needy of a part pension until a few years ago.

    Virtually all of those 350,000 will be forced onto the OAP by Shorten's cruel attack. It is estimated at least 20% of the 350,000 retiring each year will be unable to self-fund solely because of the deprivation of franking credits.

    Shorten claimed more than half of all cash franking credit refunds go to people with over $2.4 mil, but they already lost their cash refunds to the LNP's TBC reform, so Shorten's claimed savings figures are more than double what is actually achievable. And then he has to find the money to pay at least 350,000 extra pensioners and an extra 70,000+ every year. The sums don't add up. Blind Freddy can see that his stupid policy will cost the country a flipping fortune - NOT SAVE. He's taking NOTHING from the wealthy. Those he's robbing will just take pension income instead.

    17th Apr 2019
    9:14pm
    Some 350,000 lost up to 30% of their income in the assets test change. Those same people will lose up to 30% of what's left if Shorten has his selfish and unfair way. "
    Can you Labor voters name a single other group of Australians who have lost up to half their income in less than 3 years? And NONE of those folk were 'wealthy'. They were poor enough to be deemed needy of a part pension until a few years ago.

    Virtually all of those 350,000 will be forced onto the OAP by Shorten's cruel attack. It is estimated at least 20% of the 350,000 retiring each year will be unable to self-fund solely because of the deprivation of franking credits.

    Shorten claimed more than half of all cash franking credit refunds go to people with over $2.4 mil, but they already lost their cash refunds to the LNP's TBC reform, so Shorten's claimed savings figures are more than double what is actually achievable. And then he has to find the money to pay at least 350,000 extra pensioners and an extra 70,000+ every year. The sums don't add up. Blind Freddy can see that his stupid policy will cost the country a flipping fortune - NOT SAVE. He's taking NOTHING from the wealthy. Those he's robbing will just take pension income instead.
    Anonymous
    17th Apr 2019
    9:24pm
    Not a problem for me, personally. I'll stop my part time work, spend a few thousand on home renovations and a holiday, and put my hand out for a $20,000+ a year pension - rising every 6 months. Much better than a $5000 franking credit refund. Stuff the greedy taxpayers who are too stupid to demand sensible economic management. Let them pay if they are dumb enough to elect Short-on-economic sense.

    And those planning retirement will soon realize that a couple is better off with $500,000 and a part pension than with $1 million, so will stop saving. And in a few years, the milking cows will all be dry and the greedy idiots who thought ripping off those who are CONTRIBUTING to the economy was a good idea will scratch their heads and wonder what the hell went wrong.

    Of course when only the rich can afford to self-fund retirement and a million+ more are on the OAP, the pension will have to be cut. And you greedy 'I'm all right Jack stuff you' pensioners' will scream like stuck pigs and look for someone to blame. Point at yourselves, fools. You are begging for it to happen.
    Sundays
    18th Apr 2019
    7:57am
    So glad you have a plan. You were beginning to sound like some crazed zealot. And of course your predictions are those of a qualified economist.
    Rae
    18th Apr 2019
    8:15am
    Yes indeed. Time to capitulate on trying to remain independent and join the queues at Centrelink. At least as an aged pensioner you can be one of the "poor" instead of one of the "wealthy" and have more income as a reward for becoming poorer haha. Beliefs are really dumb in Australia right now and running a Nation of what we believe is reality is going to end up badly I suspect.
    porthboy
    18th Apr 2019
    11:16am
    Do I sense a dash of jealousy towards pensioners?
    Anonymous
    18th Apr 2019
    2:32pm
    No, porthboy. No jealousy. Just disgust that so many are so utterly STUPID as to think it's good for the nation to end self-reliance.
    Anonymous
    18th Apr 2019
    2:39pm
    My predictions are PLAIN COMMON SENSE, Sundays, but bat-eyed Labor voters don't have any of that.
    porthboy
    18th Apr 2019
    4:04pm
    You may be older, but you're definitely not wiser!!
    Sundays
    19th Apr 2019
    9:18am
    OAW, Common, absolutely given the language you use. Sense, NO, because your figures are rubbish. 300,000 had their part pension reduced, 100,000 had their pension cut, 50,000 moved from part pension to full pension. It was due to a change in the Asset test. The part pensioners will not be affected by changes to Franking Credits. Of the 100,000 who had their pension cut there aren’t any figures as to how many have their asset in a SMSF to be affected by Franking credits. Those in industry or retail funds are not affected. 35% of those with a Defined Benefit pensions also lost some or all of their part pension and will continue to do so under the income rules. Again, nothing to do with Franking credits. I think you are definitely the greedy one who is trying desperately to make a link with your situation and every other retiree. Also, more Australians are expected to be part pensioners rather than full pensioners as super kicks in.
    Anonymous
    20th Apr 2019
    4:41am
    Keep believing and peddling lies, Sundays. You Labor-voters love lies.

    Industry and retail funds ARE affected, but members in many cases won't know because the funds weren't giving them their credits anyway. And in some funds the workers will be losing by subsidising retirees. This article is all about making people THINK any decline in earnings is due to something other than Labor Party treachery.

    Porthboy, I'm obviously a hell of a lot wiser than you, or you would understand correctly what Shorten is doing and how damaging it is - and you would have investments and be impacted by it. Clearly you are one of the greedy folk who failed in life and now wants others robbed to support you. Lots of them around now.
    Anonymous
    20th Apr 2019
    4:41am
    Keep believing and peddling lies, Sundays. You Labor-voters love lies.

    Industry and retail funds ARE affected, but members in many cases won't know because the funds weren't giving them their credits anyway. And in some funds the workers will be losing by subsidising retirees. This article is all about making people THINK any decline in earnings is due to something other than Labor Party treachery.

    Porthboy, I'm obviously a hell of a lot wiser than you, or you would understand correctly what Shorten is doing and how damaging it is - and you would have investments and be impacted by it. Clearly you are one of the greedy folk who failed in life and now wants others robbed to support you. Lots of them around now.
    Adrianus
    20th Apr 2019
    8:52am
    I've stated before, the unions are hellbent on controlling the wealth of our nation, both the Federal/state budgets and the $trillions in Superannuation. Bill Shorten may say he will not make any changes to Super on Wednesday but on Thursday he is reminded that he will introduce $billions of taxes on those who have worked hard for their financial retirement goals. The purpose of these new taxes is not to create a more egalitarian society, because you cant do that by putting more of us in the poor house, it is designed to gain more control over Australia's wealth.
    We are simply collateral damage. Surely Australians wouldn't put Bill Shorten in the Lodge??
    Anonymous
    20th Apr 2019
    5:29pm
    Sadly, Adrianus, I think we have a large number of deluded fools who think robbing workers and savers is going to magically make everything wonderful. Poor silly fools simply can't understand that there is no bottomless pit, and in any case Shorten is taking from battlers to give to wealthy. They really can't read policy and understand what is in front of their noses. Look at the dumb comments about taxing people with 'millions in shares'. As if!

    We live in hope, but seeing how deluded so many are, my hope is fading.
    Adrianus
    21st Apr 2019
    8:52am
    Shorten is a danger to Australia's prosperity because he will be doing the bidding of the Unions and the loopy Greens. A few Independents have already eluded to not supporting parts of Shortens $387Billion tax grab.
    If we are silly enough to elect Bill Shorten, we will see the mess left behind after 3 years of reckless spending on Climate Change etc, only to find the budget still with a huge deficit.

    And the increased electricity bills will not make an iota of difference to the climate.
    ardnher
    22nd Apr 2019
    1:09pm
    The Squirrel and
    The Grasshopper


    POPULAR VERSION

    The squirrel works hard in the withering heat all summer long, building and improving his house and laying up supplies for the winter.
    The grasshopper thinks he's a fool, and laughs and dances and plays the summer away.
    Come winter, the squirrel is warm and well fed.
    The shivering grasshopper has no food or shelter, so he dies, out in the cold.


    THE END
    AND NOW
    THE AUSTRALIAN VERSION


    The squirrel works hard in the withering heat all summer long, building his house and laying up supplies for the winter.

    The grasshopper thinks he’s a fool, and laughs and dances and plays the summer away.

    Come winter, the squirrel is warm and well fed.

    A social worker finds the shivering grasshopper, calls a press conference and demands to know why the squirrel should be allowed to be warm and well fed while others less fortunate, like the grasshopper, are cold and starving.

    The ABC shows up to provide live coverage of the shivering grasshopper, with cuts to a video of the squirrel in his comfortable warm home with a table laden with food.

    The Australian press informs people that they should be ashamed that in a country of such wealth, this poor grasshopper is allowed to suffer so while others have plenty.
    Anonymous
    22nd Apr 2019
    1:39pm
    And Bill Short-on-brains comes along and steals all the squirrel's savings and gifts some to the grasshopper and wastes the rest on nonsense schemes, and next year the squirrel doesn't bother to save but just asks for the same handouts the grasshopper gets, so Bill Shorten borrows billions.

    22nd Apr 2019
    7:28am
    Superannuation funds will definitely have a bad year - and probably many more to follow - if Labor wins the election. The extra taxes on super, ending franking credits to lower income savers, killing the facility for those who are out of the workforce for a period to make catch up contributions.... on and on and on go the dumb proposed changes to destroy superannuation. This is the party that said it was such a good idea. Of course it was NEVER a good idea to make is so wonderfully favourable for the rich - with massive tax concessions - a quite lousy for the poor, with virtually no concessions for them at all. But that's the FEED THE RICH Labor Party that so many poor deluded souls THINK actually cares about battlers.

    The message for Australians is 'elect Labor' and vote to keep the poor down, push the middle class into hardship, and FEED THE RICH LAVISHLY. If you stopped listening to their lies and actually examined their policies in detail, you would see that is their goal.
    Misty
    22nd Apr 2019
    1:46pm
    I am sick of both side of politics throwing all these millions around, why didn't both parties do all these things they are promising now when they were and are in power?, just pork barreling and vote buying that's what it is.
    Dermot
    2nd May 2019
    2:57am
    Franking credits = living off the government. NOT self funded - get real !!!


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