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In Australia this actually happens in a rather structured way; Superannuation, or defined contribution benefits as it is usually called in Europe. Your employer
by tankenmate 10y ago
In Australia this actually happens in a rather structured way; Superannuation, or defined contribution benefits as it is usually called in Europe. Your employer (full or part time) is required by law to contribute 9.5% of your salary (over the top) into a regulated fund with your name on it (i.e. the funds are no longer accessible to the company). In your younger years this is normally put into a growth focused investment (stocks etc), when you get closer to retirement most employees elect to move to a more cash / hard asset class (bonds, property, and sometimes corp bonds). The real pity is that most super administration companies charge whopping fees and most employees stick with the administrator chosen by their company.
- eru 10y agoAlas, the superannuation is mostly restricted to fairly expensive options, ie high fees. That's because providers have to clear some regulatory hurdles keeping competition down. You can't just tell the government "Yeah, I'm using vanguard index funds for my mandatory 9.5%." At the moment, Host Plus might be the best option (read 'cheapest option') for Australians. Not sure if that's still the case.
- tankenmate 10y agoYou can set up a self managed super fund (SMSF)[0], you do become the trustee of your own super fund and you do need to follow super regulations but it does give you the ability to a large percentage if not all your super money into a low fee index fund. [0] https://www.ato.gov.au/Super/Self-managed-super-funds/Thinking-about-self-managed-super/ https://www.ato.gov.au/Super/Self-managed-super-funds/Thinki...
- eru 10y agoYes. But that only makes sense for people who already have a sizeable chunk of super---since there are fixed costs for an accountant to sign off on your investment decisions.