Why DIY Super?

As baby boomers start to retire from year 2005 to 2024, the government agrees that there will not be enough for everyone in the coffers. The aging population will need to fend for themselves and become self-funded retirees.
Australia is already the highest taxing country in all the OCED countries and soon will have over 20% of its population over the age of 65. Most of us have come to realise that Self-funded retirement is our only hope for an enjoyable time in our long retirement years.
Earlier, DIY Super Funds were suitable to only very wealthy Australians. But now every Australian is considering a DIY Super Fund. Last year, each working day, over 100 Super Funds were being established.

DIY Super Fund is now a viable alternative / proposition for all Australians because

• Compulsory high (9%) employer contribution to super on current high salary, is forcing every employer to contribute a sizeable amount each year. Thus, compulsory family Super (new money going in super) contributions are being added in thousands of dollars every year.
• Due to compulsory employer Super Contribution since 1992 most fund balances have grown to an amount where DIY Super Fund costs, as compared to the advantages that it has to offer are justified to the whole family. It is not uncommon to find all family members fund balances jointly to be more than $100,000.
• Recent poor returns by publicly offer Super Funds (like AMP, Colonial etc).
• High fees charged by publicly offer Super Funds - Industry average is 2.5% entry fees and 1.5% of fund balance as Management Fees and / or 0.5% Investment fees on fund balance.

These fees are sometimes hidden as they are charged to income BEFORE crediting income to the Super Fund (income net of fees is credited to fund balance). In some cases funds return a positive income, however, due to high fees, negative returns are the final result. Further, these fees are not clearly spelled out in the six monthly statements. Hence the member never gets to know the exact dollar amount cost of publicly offer super fund, until enquiries are made.