Superannuation - Compound Interest

[MMDown Under]

I didn;'t want to join Superannuation when I joined the Public Service because women only received their premiums and interest if they left (unlike men).  Fortunately they changed the rule and I joined.  This was the best financial decision I ever made.  I have lived off my Super as a self funded retiree for 17 years and continue to do so.  

 

I would recommend people leave their money in Superannuation so they will have money for their retirement.  

[OzKiwiJJ]

1 minute ago, MMDown Under said:

I didn;'t want to join Superannuation when I joined the Public Service because women only received their premiums and interest if they left (unlike men).  Fortunately they changed the rule and I joined.  This was the best financial decision I ever made.  I have lived off my Super as a self funded retiree for 17 years and continue to do so.  

 

I would recommend people leave their money in Superannuation so they will have money for their cruising.  

I fixed it for you.🤣🤣🤣

[MMDown Under]

Just now, OzKiwiJJ said:

I fixed it for you.🤣🤣🤣

Yes all my cruising  and land travel have been from my superannuation. 

[Aus Traveller]

27 minutes ago, MMDown Under said:

I didn;'t want to join Superannuation when I joined the Public Service because women only received their premiums and interest if they left (unlike men).  Fortunately they changed the rule and I joined.  This was the best financial decision I ever made.  I have lived off my Super as a self funded retiree for 17 years and continue to do so.  

 

I would recommend people leave their money in Superannuation so they will have money for their retirement.  

I worked in the public service but it was compulsory to be in the superannuation fund. I only received my premiums plus a very low rate of interest when I had to resign because I was going to be married.

[Ozwoody]

27 minutes ago, MMDown Under said:

Yes all my cruising  and land travel have been from my superannuation. 

Yes me too, glad I left it alone.

Keep telling the young ones leave it alone, add as much to it you can, because when you retire your going to need at least a million in it when you retire.

 

Edited May 17, 2022 by Ozwoody

[MMDown Under]

6 minutes ago, Ozwoody said:

Yes me too, glad I left it alone.

Keep telling the young ones leave it alone, add as much to it you can, because when you retire your going to need at least a million in it when you retire.

 

Yes I put extra in, when I had my two children on unpaid maternity leave.  

[MMDown Under]

12 minutes ago, Aus Traveller said:

I worked in the public service but it was compulsory to be in the superannuation fund. I only received my premiums plus a very low rate of interest when I had to resign because I was going to be married.

When did you resign to get married?  I didn't have to resign to get married, but had to change departments.

[Docker123]

I receive my payments from Unisuper every month. Nice way to be.

 

When I first started working in the public sector, things were very different.  We blokes were required to contribute each pay with retirement long in the future.

 

Women who started at the same time also contributed, but when they married they usually had to “retire” and received a lump sum payout.That was to set up the family, but no ongoing income.

 

[arxcards]

I agree it is important, and I do have a moderate amount of super. In balance though, we have spent much of the past 15 years enjoying life as well, with travel a major part of it. I think it is a higher importance to owe no money, as interest is an anchor. Day to day life became so much easier since I no longer needed to pay back a mortgage or loans.

[MMDown Under]

7 minutes ago, Docker123 said:

I receive my payments from Unisuper every month. Nice way to be.

 

When I first started working in the public sector, things were very different.  We blokes were required to contribute each pay with retirement long in the future.

 

Women who started at the same time also contributed, but when they married they usually had to “retire” and received a lump sum payout.That was to set up the family, but no ongoing income.

 

In Queensland, women only received a refund of their premiums and a low rate of interest on marriage.  They were entitled to six weeks' leave on marriage.  The rules changed when I married, but the six weeks' leave was still on the books, so I took it.  The beginning of my love affair with leave.  

[Aus Traveller]

34 minutes ago, MMDown Under said:

When did you resign to get married?  I didn't have to resign to get married, but had to change departments.

1967. The Queensland government would not employ married women.

[MMDown Under]

1 minute ago, Aus Traveller said:

1967. The Queensland government would not employ married women.

I didn't have to leave when I got married in 1972, so I was lucky. 

[Docker123]

Of course, there were some women who were so busy with the weddings that they just happened to forget to tell the department. Back to work in a couple of weeks.

 

Another variation was in areas like teaching. Women had to resign from their permanent appointments. But were then re-hired on contracts. Often for years.

Edited May 17, 2022 by Docker123

[MMDown Under]

12 minutes ago, MMDown Under said:

I didn't have to leave when I got married in 1972, so I was lucky. 

1969 the Commonwealth Conciliation and Arbitration Commission determined the principle of equal pay for work of equal value.  

The ban on married women as permanent employees in Qld State Public Service service was abolished. However women required departmental  approval to continue to work after marriage until 1973.  

1970 women were no longer excluded from drinking in public bars in Queensland.  

[MMDown Under]

1 minute ago, MMDown Under said:

1969 the Commonwealth Conciliation and Arbitration Commission determined the principle of equal pay for work of equal value.  

The ban on married women as permanent employees in Qld State Public Service service was abolished. However women required departmental  approval to continue to work after marriage until 1973.  

1970 women were no longer excluded from drinking in public bars in Queensland.  

 

1 minute ago, MMDown Under said:

1969 the Commonwealth Conciliation and Arbitration Commission determined the principle of equal pay for work of equal value.  

The ban on married women as permanent employees in Qld State Public Service service was abolished. However women required departmental  approval to continue to work after marriage until 1973.  

1970 women were no longer excluded from drinking in public bars in Queensland.  

merle thornton and a friend chained themselves to the public bar at the Regatta Hotel in 1965!

[MMDown Under]

48 minutes ago, Docker123 said:

Of course, there were some women who were so busy with the weddings that they just happened to forget to tell the department. Back to work in a couple of weeks.

 

Another variation was in areas like teaching. Women had to resign from their permanent appointments. But were then re-hired on contracts. Often for years.

yes  that policy was a disgrace!  They were brilliant teachers who worked under those conditions.  

[Hogbay]

2 hours ago, MMDown Under said:

I didn;'t want to join Superannuation when I joined the Public Service because women only received their premiums and interest if they left (unlike men).  Fortunately they changed the rule and I joined.  This was the best financial decision I ever made.  I have lived off my Super as a self funded retiree for 17 years and continue to do so.  

 

I would recommend people leave their money in Superannuation so they will have money for their retirement.  

Lucky you, Public Service had a defind benefit scheme then now its not anywhere as generous. 17 years ago was not the intrest rate about the same? 17% ? How much do you have to be self funded? Only the pension for me .

 

[MMDown Under]

26 minutes ago, Hogbay said:

Lucky you, Public Service had a defind benefit scheme then now its not anywhere as generous. 17 years ago was not the intrest rate about the same? 17% ? How much do you have to be self funded? Only the pension for me .

 

Qld Gvt talked staff out of the defined benefit scheme.  It was a time of people were being made redundant in the Qld Public Service.  

[vegemeter]

I am reliably informed the younger generation know about compound interest due to the fad of Cryptocurrency (now dead)

 

Grandchildren tell me they reinvested their profit during the dip, I ask them what part of the cycle we are in now, they say it’s transitory

 

Cheeky buggers

[NumnuT_OZ]

Superannuation is umm....Super!

With over 35 years with NSW gov my balance is growing nicely(except the this calendar year).

 

At 52 i hope to have another 30 years on this planet to cruise/holiday around the world!

 

you will get bad/negative returns in some years, but overall a very good pillar of retirement

[Hammer61]

And for anybody still working, make sure you salary sacrifice AS MUCH as you can afford! Will save you a heap of tax and boost your Super and if you start early enough it will probably mean you can retire early at your preservation age, currently I think its 58.

 

For anyone who doesn’t know preservation age is, it’s the age you can access your super IF you choose to retire early OR do what’s called a Transition to retirement, basically work part time, 20 hours a week and supplement with Super, retirement age is still 67 so you cant get any state pension until then, but access to Super as long as you retire or part retire is allowed.

 

 

Edited May 18, 2022 by Hammer61

[NumnuT_OZ]

23 minutes ago, Hammer61 said:

And for anybody still working, make sure you salary sacrifice AS MUCH as you can afford! Will save you a heap of tax and boost your Super and if you start early enough it will probably mean you can retire early at your preservation age, currently I think its 58.

 

For anyone who doesn’t know preservation age is, it’s the age you can access your super IF you choose to retire early OR do what’s called a Transition to retirement, basically work part time, 20 hours a week and supplement with Super, retirement age is still 67 so you cant get any state pension until then, but access to Super as long as you retire or part retire is allowed.

 

 

preservation ages depends upon you were born.

Born after 30 Jun 1964 then your preservation age is 60

 

you can retire at any age you like...

 

age pension kicks in at 67 if you don't have too many assets or investments(includes super)

CS

[NumnuT_OZ]

Just now, NumnuT_OZ said:

make sure you salary sacrifice AS MUCH as you can afford!

120% agree with this!!

[Hammer61]

2 minutes ago, NumnuT_OZ said:

you can retire at any age you like.

True, but you cant access Super until preservation age, or age pension at 67.

 

Age pension is also means tested but excludes the family home, so if you have a very healthy Super balance at 67 (around $850K plus) you may not get the full aged pension, many people who retire early and access Super ensure they still have enough money in Super (around $400K) then you receive both, it then scales back the more you have in Super.

 

Be wary though as the rules do change and its still better to build a decent Super balance and be self funded than to rely on the state and/or constantly having to submit information to centerlink to get the pension if you’re supplementing your super with the state pension. 

[Snoopkat]

Really wished I knew then what I know now about super when I entered the workforce 20 years ago.  Spent the last 7+ years playing catch up and am overall happy with my current super balance but have had quite a few 'if only' moments especially when I start thinking about the lost compounding.  Worked for an aged care provider awhile back and the takeaway from that job was to aim for self funded retirement and not rely on the pension. Of course, that is assuming the pension will still be around when it's my time to retire...