The Parasites of Western Economy, Part 6: Robbers of pension money in Australia.

The Parasites of Western Economy, Part 6: Robbers of pension money in Australia

by tonytran2015 (Melbourne, Australia).

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(Blog No.129).

#parasite, #Royal Commission, #misconduct, #Banks, #Financial Service Industry, #pension, #superannuation.

The Parasites of Western Economy, Part 6: Robbers of pension money in Australia.

There is currently a national scandal in Australia about the robbery of pension funds of retirees by Banking and Financial Service Sector.

1. Preparation ground work for the Grand Robbery.

1. Non profit Superannuation (Pension) Associations such as NML (National Mutual Life Association), MLC (Mutual Life Corporation), AMP (Australian Mutual Providence Society) have been justly or unjustly dissolved, bought off around 1998 giving capital accumulated or generations to existing members and management.

This is just like dissolving all Catholic Churches to give their huge cash value to existing members and their leaders. Would you think of that as an immoral robbery by existing members and management of the heritage intended not only for them but also for other future members?

From then on, there are only for profits superannuation fund managers.

2. Next. the Australian government made laws forcing all working people to have compulsory superannuation contributions.

3. Banks and entities with unknown reputation are licensed to manage superannuation funds for everyone.

4. Government makes auditing requirements such that it is uneconomical for individual to manage his own superannuation fund.

2. Count Dracula operating the captive blood bank.

With such system already set up, ordinary people have to rely on banks and entities with unknown reputation. These organizations then play the rough game in gouging the savings placed in superannuation funds.

The charges for managing superannuation from these organizations are [1]:

1.Entry and exit fees of 5% chargeable when you join them and when you leave them (it is a captive market). If you decide to let someone else manage your fund, you will lose another 5% again. If you change the manager every year then you will lose 5% every year on top of all other fees.

How can they justify taking 5% of your hard-earned money just for opening the book?

2. Yearly management fees: This may be at around 3% of your money while your money may earn only 2% from investment on the Share Market. So you may end up with a loss of 1% every year!

How can they justify that level of fees given that owner’s instruction to them is only invest according to the Share Market Index, or alternatively only invest in Government bonds?

3. An Australian feature is that the fund managers advise their clients (when and on what?). There have been advice fees of $1000 per annum even to clients whose deaths the managers have known for more than 10 years [11].

Why don’t those thieves charging fees for no service go to jail like any smaller time pick-pockets? [12,13]

3. A national scandal of robbery of retirees.

There is no wonder why bankers (meaning the CEO of the banks, not the ordinary bank tellers) are given outrageous incomes [14] while retirees keep getting poorer and poorer [15-19].

References:

[1]. https://www.superguide.com.au/boost-your-superannuation/comparing-super-funds-10-fees-charges-need-know

[2]. https://www.theguardian.com/australia-news/live/2018/apr/23/banking-royal-commission-anz-amp-nab-evidence-live

[3]. https://www.smh.com.au/politics/federal/how-scott-morrison-changed-his-tune-on-the-banking-royal-commission-20180420-p4zaoa.html

[4]. http://mobile.abc.net.au/news/2018-04-16/banking-royal-commission-financial-planners/9662166

[5]. https://www.smh.com.au/business/banking-and-finance/cba-charged-client-fees-for-10-years-after-death-20180419-p4zag1.html

[6]. https://www.theguardian.com/australia-news/2018/apr/23/banking-royal-commission-amp-advice-led-to-loss-of-quarter-of-mans-superannuation

[7]. http://www.abc.net.au/news/2018-04-30/amp-chairperson-catherine-brenner-steps-down/9709874

[8]. https://financialservices.royalcommission.gov.au/public-hearings/Pages/round-2-hearings.aspx

[9]. https://www.minterellison.com/articles/fee-for-no-service-case-studies-at-the-royal-commission

[10]. http://www.afr.com/business/banking-and-finance/financial-services/amp-orders-white-wash-report-for-asic-20180417-h0yvlj

[11]. http://www.abc.net.au/news/2018-04-19/cba-charged-fees-to-customers-who-had-died-commission-hears/9675922

[12]. http://www.abc.net.au/news/2018-04-20/corporate-crooks-set-to-face-tougher-penalties/9677792

[13]. http://www.abc.net.au/news/2018-04-20/banking-royal-commission-financial-advisers-coalition-labor/9679008

[14]. https://survivaltricks.wordpress.com/2016/12/22/bankers-given-outrageous-incomes-by-their-boards/

[15]. http://theconversation.com/the-financial-services-royal-commission-highlights-the-vulnerability-of-many-older-australians-93359

[16]. https://www.investopedia.com/articles/retirement/111216/where-retirees-are-falling-short-living-standard.asp

[17]. http://articles.latimes.com/2013/may/17/business/la-fi-mo-retirees-standard-living-20130517

[18]. http://www.abc.net.au/news/2017-05-23/super-incentives-to-downsize-home-could-leave-retirees-worse-off/8550874

[19]. https://www.corelogic.com.au/news/retirees-downsizing-good-theory-doesnt-appear-make-fiscal-sense-practice#.WukVHZq-mUk

Added after 06 June 2018:

[20]. http://www.thisismoney.co.uk/money/pensions/article-4967930/Pensions-rip-fees.html

[21]. https://www.9news.com.au/royal-commission

[22]. https://www.theguardian.com/australia-news/live/2018/apr/23/banking-royal-commission-anz-amp-nab-evidence-live

[23]. https://www.ageuk.org.uk/information-advice/money-legal/pensions/pension-scams/

[24]. https://theorangefiles.hu/nationalization-of-private-pension-funds/https://www.reuters.com/article/hungary-pensions-idUSL6N0TG2MP20141127

[25]. https://www.telegraph.co.uk/finance/personalfinance/investing/11726158/Exposed-the-rip-off-investment-advisers-who-cost-British-expats-billions.html

[26]. https://daehee.com/steinhoff-scandal/

[27]. http://www.abc.net.au/news/2018-04-16/banking-royal-commission-financial-planners/9662166

[28]. https://asic.gov.au/regulatory-resources/find-a-document/reports/rep-499-financial-advice-fees-for-no-service/

[29]. https://startsat60.com/money/fat-cat-super-funds-are-gouging-super-returns-is-yours-one

[30]. http://mobile.abc.net.au/news/2016-10-20/banks-accused-of-gouging-super-customers/7948950

[31]. http://morningmail.org/gouging-banks-mamma-mia-go/

[32]. https://www.superguide.com.au/boost-your-superannuation/comparing-super-funds-check-out-the-cheapest-funds

RISING BANKRUPCY OF PENSIONERS

[33]. http://theeconomiccollapseblog.com/archives/bankrupt-america-bankruptcy-soars-as-the-country-grapples-with-an-unprecedented-debt-problem

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