- Dec 2014
Well, some years ago our country shifted from an aged pension to superannuation based retirement structure. Of course there is still a safety net, however, with rising costs in this country (energy, housing etc.), many cannot afford to retire. It has been stated by leading economists that one needs $1 million to retire comfortably in Australia and if one doesn't own a home (which is out of reach for many), one will be condemned to a life of penury in one's sunset years, unless one possess such wealth. There is of course, an outcry but many are resigned to never giving up full time work. Many low paid workers of my generation (late boomer; early X) were already in the workforce for some time when the superannuation plan was brought in, therefore, they will never have enough money to retire fully.
The superannuation plan was introduced about 1989. The nation had to forgo CPI (consumer price index) wage rises for about a decade, and the employer redirected the funds for normal rises according to the CPI into a super fund. People also contribute to the fund themselves if possible and the government will match said personal contributions up to a point.
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