Wednesday, March 28, 2012

Is superannuation dangerous?

Me on ABC891, April 4

9 minutes, play or CLICK THEN CLICK AGAIN to download mp3

TONY DELROY: Where's it best to keep your money?

You'd be forgiven for answering "under your bed".

In the year to the end of February the typical super fund made 0.1 per cent.

That's right - next to nothing.

February was a good month. Over the year to January the typical super fund lost 1.45 per cent.

It's happening in part because the funds are following conventional wisdom in investing heavily in shares. Over time they are said to perform better than anything else.

But do they? And are our super funds dangerous?

Our Wednesday economics correspondent Peter Martin joins us to discuss new thinking and an alarm sounded by the former head of the Treasury Ken Henry.

Peter is economics correspondent for The Age and the Sydney Morning Herald and joins us from parliament House in Canberra...

Related Posts

. You're better off with your super in equities, right?

. "Australia’s pension exposure to equities spells doom"

. Super is a con, perpetrated by people who con themselves