Superannuation not enough for many workers

Superannuation not enough for many workers

Superannuation not enough for many workers

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Superannuation will not be enough for casual workers to retire on. People who have had consistent work for years will still struggle to save enough in their superannuation fund. Dubious claims abound that even $1 million is not really enough as we live longer. Workplace age discrimination will only exacerbate the problem. Let us focus on the problems of inconsistent work and saving for retirement.

Millions of workers will never accumulate enough retirement savings in a casual workforce. Successive governments continue to mismanage the debt and deficit. There are less tax payers to cover budgeted spending. Forgoing long term revenue through privatisation also exacerbates the problem. Also, some companies get away with not paying superannuation. We hear those stories frequently enough. They close and owe super entitlements that will never be paid. Then then they start a new company. What a circus for workers in Australia!

So there will be no welfare pension one day. People need to work in multiple jobs just to get by. Superannuation is often an after thought. This is especially the case with such low current returns causing some people to give up and forget all about it. It affects all low income earners and underemployed casuals working inconsistently in between welfare. They have no hope of ever having enough retirement savings.

The media talks about women in and out of work in between having children. Does no one care about the generations of forgotten men? Many men say that they stay out of relationships in part for financial reasons. They could not afford children on top of that if they wanted them when work is inconsistent in some parts of Australia.

Successive governments still allow in far too many immigrants and foreign students who take the jobs. Governments still allow the 457 visa worker rort to continue. These lower paid labouring jobs under the guise of engineering jobs take work away from skilled local workers. Penalty rates have been eroded in recent years through EBAs where most of the work is on the weekend. That might pass the “better off overall” test on paper. However, in reality it has been a horror story for plenty of workers. Only a small amount of it has reached the media. The erosion of our financial situation will continue with these and other unsustainable practices. It does not help also that we are overtaxed and everything is way overpriced.

You can legally use your super, in a SMSF, to earn yourself a living if you go about it through a business in the right way. You then have a chance to rapidly increase your super with normal and voluntary contributions. (Note that you should seek appropriate advice on that and not take my word for it.) But is there a market for your business’s product or services in these uncertain economic times? Maybe an investment property in your SMSF would be better for now? You would then need a regular job as an employee. So what do you do?

The above factors are a problem for millions of Australia’s forgotten workers. They never asked for their lives to be thrown away so easily. They would probably fail if they launched a class action lawsuit to change some of this. It might not be affordable for those who are fed up to move to another country. I have no solutions but it appears that something needs to give urgently. What can we do?

Related:

Problems with casual work hours in a casualised workforce

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