You’re absolutely right, but I’ll just point out that superannuation (pension) funds in Australia are hitting 8 percent annual returns over a 30 year timeframe. You need a broader investment base to do that, and that’s hard for individuals to do by themselves. How do you diversify your $50 a week investment to maximise return? You can’t.
Here, superannuation funds do all the heavy lifting for you, it’s mandatory for employers to put a nominal amount of each pay into one. There are no minimum investment amounts with them and fees are waived if the balance is below a few thousand, so even if it’s $10 a week you get something back eventually.
So it’s possible to have it work if your government sets things up right.
M0oP0o@mander.xyz 1 year ago
Oh I am not saying people should be the ones wholly responsible for their retirement portfolio, and congrats for having a competent government pension option. I would love to have access to something better then the market equivalent to roulette.
Hell in Canada the pension plan (that you can not get enough at the moment) got a stunning 1.3% return this year. And unlike other plans you need to pay extra for 40 years to get additional funds at the end (no one I know of even thinks of doing this). And some parts of the county want to spin off there own pension plan (Alberta) even though most expect it to perform worse (due to a smaller investment base and using a bad private firm to run it).