Money Morning Agrees – Your Retirement Savings Under Threat

22 Jul

Sorry dear reader. I’ve simply been too busy trying to get this NGER Register debunking research finished to offer you anything original today.

But in a timely and thematically happy coincidence, the estimable authors of Money Morning yesterday published their must-read free newsletter on a topic that has been covered at length right here on barnabyisright.com.

The coming theft of your super by our government.

Below I’ve taken the liberty of quoting some of Money Morning’s commentary on this topic, along with a link to their complete article.

h/t to Twitterer @Kmorefive for bringing this to my attention:

Special Report: Your Retirement Savings are Under Threat

A week ago we got an email from the Australian Treasury.

It was titled: “Exposure Draft – Legislative Framework for Public Ancillary Funds”

In a moment we’ll explain why that email is more proof the federal government secretly plans the wholesale taking of individuals’ retirement savings.

Normally these Treasury emails are dull.

And this one was no different.

In fact, the email’s headline is usually enough to put us off reading further.

But this time, something made us look.  Perhaps it was the words “public” and “funds”.

So we read the document… we didn’t like what we saw…

In our view, this is the next step in the federal government’s plans to nationalise retirement savings.  We’ve been ahead of the game on this for the past three years.

We warned bureaucrats and politicians regret giving up control of retirement money.  That there’s a big stack of cash – $1.3 trillion – the government can’t easily get hold of.

But over two years ago, things started to change.

It started with the government and Australian Taxation Office (ATO) taking the unclaimed superannuation accounts of foreign temporary workers.

Over $700 million of private savings was “transferred” to the federal government’s coffers.  But the government didn’t invest it.  Instead, it went to consolidated revenue.  Consolidated revenue is the government’s day-to-day spending.

In other words, private retirement savings have been taken to fund the public service… while at the same time leaving the taxpayer on the hook to repay $700 million if the foreign workers ever ask for their money back.

Who says governments plan for the long term!

But that wasn’t the end of it.  The next step was to grab Australians’ retirement savings… under the ruse it’s too expensive for private funds to take care of unclaimed accounts… only the government can do that… apparently!

Back-door savings grab

And now, the next stage of the retirement grab is in train… with your savings next in line for the government’s sticky-fingers treatment…

We’ve seen the nationalisation of retirement funds in Australia (examples above).  And it’s happened overseas: Argentina, Ireland and Hungary are just three examples.

But now, with the proposed amendments to Public Ancillary Funds, Australia is set to follow suit.

The call for more public spending on infrastructure gives the government a perfect excuse.  And the country’s biggest and most influential bodies will help – namely the banking and funds management industries and the trade unions.

Beware government offering gifts

Stock market volatility and low savings means many realise they can’t retire without government help.  Public Ancillary Funds are the answer to the government’s problem.  They’ll enable individuals to make voluntary “donations” to the State.  In return for receiving extra credits for the State Pension.

Notice we say voluntary.  That’s how it’ll start.  But odds are that won’t be enough to raise the billions of dollars the government needs to fund its programmes and welfare.

The next – and inevitable – stage is for compulsory investment in Public Ancillary Funds.  Most likely through the back door.  Such as requiring private fund managers to hold a percentage of assets in Public Ancillary Funds.

[click here to read the complete article]

I wonder if the fine lads at Money Morning are aware of the Liberal Party’s quiet, unnoticed-by-all policy announcement on June 3, which is in my opinion by far the clearest harbinger yet of the super theft to come?

Please do take the time to read over just some of the many articles that I have written previously on this very same topic.

And please do especially note the fact that both major parties have clear policy plans already in train, to get their hands on your super –

No Super For You!!

Liberal Party’s Sneaky Plan To Steal Your Super To Pay Labor’s Debt

Why They Are Planning To Steal Your Super, Explained In 4 Simple Charts

US Treasury “Borrowing” Of Federal Pensions Brings Theft Of Private Pensions One Step Closer

Now The UK Government Is Stealing Super Too

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7 Responses to “Money Morning Agrees – Your Retirement Savings Under Threat”

  1. Twodogs July 22, 2011 at 9:24 am #

    Is this bigger than even the carbon tax? It’s time to spread the word about this outrage.

    • The Blissful Ignoramus July 22, 2011 at 10:38 am #

      In a sense, yes it is bigger. Sadly though, most remain wholly oblivious … and many who do hear, refuse to accept that it’s true.

  2. bingbing July 22, 2011 at 5:20 pm #

    As an expat I can tell you absolutely the Goose tried to rip my Aussie Super funds. Luckily, family back home got wind of this and I was able to add a little to my Aus Super thus making the fund “active” again (the Duck targeted “inactive” funds).

  3. Whacked July 22, 2011 at 8:05 pm #

    http://kzoo.co/VyQHed

  4. Team Oyeniyi July 23, 2011 at 8:56 am #

    Good grief! What next? That was a rhetorical question!

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