• Christopher Hall

Is your Superannuation fleecing you?


Are you one of the 5 million Australians being fleeced $3bn by their own superannuation provider?

That seems like a ridiculous number of people being robbed of a lot of money, but unfortunately this is the case - and that’s only for members under the age of 25. The rest of the Australia population is still losing out - except it’s much harder for them to unravel the superannuation web that is leaching their money away.

The Royal Commission [1] has been looking into this and the further they dig, the worse it gets.

Summary:

  • If you have a job, you are forced to pay money into superannuation – the Australian Government [2] says so;

  • Most superannuation funds have compulsory, or default insurance [3] – that most Australians just don’t know about;

  • Many superannuation funds are run by Australia’s largest banks; banks which are built to make profits for their shareholders;

  • The Royal Commission has shown that often the banks decide to make the profits for themselves rather than profits for you, their customer [4]. Two main issues have been found:

  • 1) Poor investment choice; and

  • 2) Charging for insurances that might not ever pay even $1 to you, the customer.

All up, the estimated cost to everyday Australians, like you, is well over $3bn [5].

That’s billions of dollars that has come from your pocket and gone to the banks, AMP etc.

You have a choice however, and you can make this stop and protect yourself from being fleeced any further.

If you want to speak with a professional adviser about your superannuation, book an obligation-free phone conference here.

[1] https://financialservices.royalcommission.gov.au/Pages/default.aspx

[2] Superannuation Guarantee Act 1992.

[3],4 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, Consumer interactions with the superannuation industry, Background Paper 22.

[5] The Hon Kelly O’Dwyer MP, Minister for Revenue and Financial Services, ‘Encouraging and rewarding Australians by protecting your superannuation’ (Media release) 8 May 2018 <http://kmo.ministers.treasury.gov.au/media-release/050-2018/>.


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