After months of contemplation I have decided to change super.
Super or superannuation is retirement savings, equivalent to CPF and EPF. Here, it's compulsory for the employer to contribute and optional for the employee. If an employee contribute it is call salary sacrifice. See the mentality here. No saver culture. There is a cap to salary sacrifice because money in super is tax at flat 15%. So have to put a cap to avoid all the rich people putting money in super to lari tax
The interesting thing here is super is privatised and not controlled by the government. It means you managed you're own retirement fund. There many fund companies offering many type of funds depending on your risk appetite. It's like buying public mutual fund with your epf. Only catch, you can't touch it until you retire.
Managing your own super can be both stressful and rewarding. Stressful because you don't know shit about investment and rewarding when your nest egg grow even when you don't know what you are doing.
Coming from an environment where you can freely critique the government's mismanagement of retirement funds - suddenly having to manage your own retirement is daunting. At least you are guaranteed a sum at retirement under the government. There is no guarantee when you are your own manager. During GFC many poor retirees had their retirement income reduced to half. Enough to give you heart attack and die early.
Anyway I have been hunting for a good fund to park my money and believe I have found one. Now I need to do the paperwork to get my employer contribution across and start my salary sacrifice cause I am being taxed too much.
Mulling over super while doing dishes. Since when Palmolive has detergent in their range?
Do you want to manage your own retirement fund?
No comments:
Post a Comment