Sinking Super myths

Warren Truss at the Brisbane Conservative Club:

He then went on to say some pensioners enjoyed a lifestyle that included overseas trips funded by superannuation.

“Increasingly the lifestyle – and the savings for superannuation – are being seen as the opportunity to enjoy a few cruises and the luxuries of life for a few years until it runs out and then people wish to fall back on the aged pension.”

Queensland president of the Australian Pensioners and Superannuation League, Ray Ferguson, completely rejected Mr Truss’s comments, saying they were “out of touch”.

Mr Ferguson said a growing number of baby boomers were retiring with mortgages still to be paid off and with nest eggs of about $150,000.

“I completely reject Mr Truss comments that pensioners are wasting their nest egg on luxury overseas trips,” Mr Ferguson said.

“The fact is that – and the evidence supports it – the baby boomers today are retiring, our prospective pensioners are retiring, on a less than $150,000 nest egg,” he said.

“And a lot less for women because they have had not spent the same amount of time full-time in the workforce.”

He said more retirees were often paying off mortgages with their superannuation.

“More and more baby boomers are retiring with a mortgage of around $40,000 and $60,000,” he said.

“The most sensible thing for them to do is pay off their mortgage.

“And once they do that there is not much of a pool of money left over as far as their superannuation … is concerned.”

source

In my experience many retirees are rather keen to ensure that they have something to leave to their descendants when the shuffle off this mortal coil which makes them rather determined to live a frugal life to achieve that aim. That said I personally don’t think that trying to screw every bit of pleasure out of your twilight years is in any way reprehensible. In my humble opinion the very best life planning would see your final affairs finally reconciled to a zero sum game after what they  call your “final expenses”. You can’t take it with you and offspring may be less than gracious abut their legacy no matter how much they benefit from your will. So my advice is enjoy your life how ever you can and tell your offspring that they should be happy that they don’t inherent any debts.

Essentially I am saying that I don’t believe what Warren Truss is saying here, Oh I am certain that there may be the 0dd individual who squanders their super but its more likely to be through vices like gambling on the pokies or making bad choices with share market investments than it is to be from taking cruises.

Cheers Comrades