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Australia's TRILLION dollar CPF Subscribe
From: Wee1001 21:22
To: ALL 1 of 4
128095.1
Trillion-dollar baby promises a secure future for its retirees and
old folks.
* Super is now the lifeblood of Australia's financial markets and
just about everybody's retirement, write Anna Fenech and Glenda
Korporaal
* December 30, 2006. The Australian
---
FIFTEEN years after Paul Keating introduced the superannuation
guarantee legislation, Australia's superannuation assets are set to
smash through the $1 trillion level.
The magic number, which is set to be passed within the next two
weeks, has dramatically changed Australian savings patterns,
creating a funds management industry that is the fourth largest in
the world and helping to fuel Australia's stock market boom.
It has also given a new generation of ordinary Australians with a
significant level of savings outside their family home and boosted
careers and salaries in financial planning, funds management and
investment banks - which have designed new deals to take advantage
of the huge amount of cash looking for a home.
More than $150 billion in new funds has flowed into superannuation
in the last year alone, with investment managers looking at
investments from shares to property, infrastructure to private
equity - and an increasing volume of funds now looking for new
assets offshore.
The high salaries and bonuses of those clipping the ticket of the
$1 trillion super industry has seen financial services become one
of the best-paid professions in Australia, reducing the attractions
of other careers.
The empire includes a rapidly growing $155 billion low-cost
industry superannuation sector, run jointly by unions and major
employers, which is challenging traditional private superannuation
suppliers for both funds and performance.
More recent changes under the Howard Government have also
encouraged the development of self-managed superannuation funds,
which now represent more than $210 billion of the industry.
"They were huge changes," says HSBC economist Dr John Edwards, who
worked as a policy officer with Keating during his time as
treasurer.
"Before Keating's changes, (superannuation) was a fantastic system
for evading income tax," Edwards says.
"Keating did two major things. He encouraged the Arbitration
Commission to require that a certain percentage of wages be paid as
superannuation and he made sure it was preserved - that it could
not be taken out and spent.
"Without these changes we would still have a system where most
Australians had practically no financial assets other than money in
bank accounts."
Started by the Hawke/Keating government and further encouraged by
the changes of the Howard/Costello Government, Australia's massive
superannuation wealth has created a unique situation which puts the
country in a better position than other major Western nations to
cope with the retirement of the baby boomers.
"At the point where the ageing population starts to hit - which is
still about 20 years away - we would have a vastly better provision
that most of Europe and the US are likely to have," Edwards
says.
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From: Leongsam 21:28
To: Wee1001 unread 2 of 4
128095.2 in reply to 128095.1
Australia should hire Ho Ching to manage the funds. She'll do a
great job.
Get a Mac.. You won't look Back!
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From: Dumbo98 21:50
To: Leongsam unread 3 of 4
128095.3 in reply to 128095.2
<<
840% Increase over 2 decades!
vs
A Paltry 300% Increase in the same time frame!
