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>it would be manadatory retirement savings accounts for all and invested in (vanguard) index funds (and probably diversified into bonds at least) Doesn't Austr
by jdhn 8y ago
>it would be manadatory retirement savings accounts for all and invested in (vanguard) index funds (and probably diversified into bonds at least)
Doesn't Australia's superannuation work something like this? If I understand it correctly, a chunk of your salary is set aside, but instead of going into a pool like Social Security, it goes into a fund. I could be (and probably am) wrong as to how it works. That being said, I would love it if we could implement something like this in the US.
- arkem 8y agoAustralia's superannuation is more like the US 401k but with a Government mandated minimum contribution level. Individuals are free to pick their own fund providers or even create their own superannuation funds (with some caveats).
- hnzix 8y agoAlso the govt encourages additional voluntary contributions by allowing a certain amount to be salary sacrificed (paid directly without tax) into super. This is purely for the pension; unemployment benefits are completely separate. You cannot access your super funds until you reach retirement age or become critically ill.
- eru 8y agoOr leave the country, if you are not a 'strayan. But then you pay back taxes on it.
- somberi 8y agoAdding some context: https://www.economist.com/finance-and-economics/2018/08/18/australias-lauded-private-pension-system-is-under-scrutiny https://www.economist.com/finance-and-economics/2018/08/18/a...