Comments on: Australian Financial Plan: Win Lottery, Stash Under Bed

By: Geoff

Geoff — Thu, 02 Oct 2008 09:07:08 +0000

Not quite.

Australia has had compulsory superannuation since 1992. All employers must make superannuation contributions to the employees’ designated superannuation fund - a minimum of 9% of the employees salary. They cannot touch this money until they retire.

So every person in Australia is saving AT LEAST 9% of their salary for retirement.

So Australians have one of the highest savings rates in the world. Pre 1992 it was one of the lowest, and the Prime Minister (Keating) at the time realized that the Government would not be able to pay for old age pensions (much like UK and US now) so introduced compulsory superannuation.

By: Kellie Hill

Kellie Hill — Wed, 01 Oct 2008 18:37:39 +0000

and here I was thinking that was the perfect plan- a big pile of lottery winning under my bed would make it so nice and soft…. ;D

By: Justin

Justin — Tue, 16 Oct 2007 19:27:08 +0000

This is little different to the average US person, too

By: Su Yin

Su Yin — Thu, 14 Sep 2006 11:24:18 +0000

The same is true (if not worse) in New Zealand. Low wages across the board, high-cost of living plus very low financial understanding.

Also, as we don’t have capital gains tax (yet), owning a property or two is often seen as the only means of supplementing a Superannuation payout for retirement.

As a result, most Kiwis have been priced out of the home ownership market when the real estate market was long overdue for a bust.

By: Beverly

Beverly — Sat, 29 Jul 2006 21:24:19 +0000

Is “oy!” an appropriate comment? Good. That is about all my bloggin’ brain can handle right now.