what do you guys think about it?
providing financial security of the elderly, or robing people of money they could invest themselves and robing them of liquidity
for those who don't know, superannuation is the practice of the government taking some of your wage and setting it aside for your retirement, like a forced retirement fund
It's a fucking brilliant idea.
Higher levels of long run economic growth can only occur through capital accumulation, and behavioural economics shows us that people are incredibly time inconsistent with their savings and consumption preferences. More basically, people value today's consumption much more than saving for future consumption. What this means is that people don't voluntarily save enough for their retirements, which leads to future burdens on public pension systems.
So by taking x% from every tax payers pay cheque and putting it into a superannuation account you're both increasing the levels of long run economic growth and also decreasing future pension liabilities.
You're right that it's decreasing people's current liquidity, but don't think you could argue that outweighs the benefits.
Props for not actually understanding how superannuation works. Funds aren't managed by bureaucrats, they're managed by superannuation firms with professional fund managers. If your fund isn't performing you can switch to another, and if you've got enough money to warrant the high fixed costs you can put it into a self managed super account. Regardless, either way you're still putting compulsory payments in until you're 60 or w/e and can start withdrawing.
The only argument against it is "muh freedoms", which isn't really an argument.
I'm a supporter myself, pooling so many savings into the same place give us a lot to invest collectively as a country
it's unfortunate that on average our super funds are so poor on average
I also find it strange that there is so little stability, most have a relatively high proportion of high risk investemnt
making some of the investment domestic is a bold move as well, I'm not sure if the mone would be better here or invested in more lucrative markets
In Sweden you manage that money yourself(which funds to choose etc) it's just that you can't access them until 61. It's a brilliant concept as it forces even the most retarded to save some money so they won't be too big of a burden when they get old.
You mean I can choose from a selection of funds all managed by the family and family friends of of politicians.
Sounds like a deal, I'd love those enlightened folks who know better than I to manage my money.