Despite a slowing economy, Josh Frydenberg says ‘you wouldn’t want to be in any other economy, other than Australia’.
Politics with Michelle Grattan: Treasurer Josh Frydenberg on a slowing economy
This week's June quarter national accounts showed the weakest economic growth since the GFC, but Treasurer Josh Frydenberg remains optimistic.
Increasing numbers of older Australians face a harder time paying the bills when they retire because they’ll still be paying off a mortgage or renting a home.
People over 65 who still have a mortgage or are renting are projected to double in number by 2031. The trend is likely to hit government budgets and leave more retirees in poverty.
Having more money now means less money, and more dependence, later.
Making super voluntary for low earners, as proposed by a Liberal senator would leave more women vulnerable in old age.
The problem is that extra savings cut the pension, it isn’t the idea of extra savings.
There is a case for not proceeding with, or at least deferring, the legislated increase in employers’ compulsory super contributions, but it isn't the one the Grattan Institute makes.
“Churning” out of and back in to home ownership is becoming common. We haven’t caught up.
Whether you owned a home or not used to be straightforward. The boundaries are becoming permeable.
Not cutting deeming rates when other rates are falling keeps people off the pension.
Often misunderstood, deeming rates are back broadly where they should be.
Deeming rates began as a way to stop people cheating in order to obtain the pension.
It's a good idea to deem income, but of late we've doing it badly.
Open and shut. Most Australians would be worse off over their lifetimes if compulsory super contributions were lifted.
New calculations suggest middle earners will earn less over their lives if compulsory super is ramped up from 9.5% of salary to 12% as scheduled.
Compulsory super takes money out of the government’s coffers faster than savings on the pension put it back in.
It is widely believed that compulsory super saves the government money on pensions. It does, but nowhere near enough to pay for the accompanying tax concessions. Lifting compulsory contributions will make things worse, for a century.
Employees and their pensions will increasingly be at the mercy of financial markets thanks to a coalition of culprits.
Despite alarming news, retirees can still rely on their retirement nest eggs.
Social Security will have to dip into its trust fund to pay benefits this year for the first time since 1982. Should we be worried?
The old pathways to home ownership have been displaced by more uncertain routes that waver between owning and renting.
Increasingly insecure pathways to home ownership are not just a problem for property markets. The fallout is likely to hit retirement incomes, the welfare base, gender equity and the broader economy.
The compulsory super scheme in Australia is clearly superior to the voluntary 401(k) scheme utilised by the United States.
Image sourced from www.shutterstock.com
When you consider that the average US household will have just $104,000 in retirement savings, Australia's compulsory super system starts to look like a really good idea.