Couples have joint bank accounts to pay off their mortgage, their credit cards and other bills, and put savings aside to build a secure future. This requires mutual goals, planning and an overview of their combined financial position.
But when it comes to super, it’s a different matter: there’s no choice but to have an individual account.
While compulsory super is a success story, many fund members remain disengaged for a variety of reasons.
People are defaulted into their workplace super, where their employer’s contributions accumulate and remain locked in until retirement.
To complicate matters further, a new default account is opened every time someone moves to another job, giving rise to multiple accounts and more fees. Although people have the right to choose their own super fund, most don’t.
But even if fund members are engaged and do all they can to maximise their super by picking a good-performing fund with low fees, they do not have the option of opening a joint or linked account to oversee their pooled savings.
Better picture of future
Submissions to the federal government’s Retirement Income Review touched on the issue. Actuarial firm Rice Warner argued such accounts would lead to higher levels of engagement and higher levels of empowerment.
This story is from the April 2023 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2023 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.