Is there anyone working in Australia who can give an insight to their superannuation system?
From this site, i noticed there are many things that are superior to the Singapore system
http://www.ato.gov.au/super/
1. There is more freedom in managing and using the funds
2.There isnt a middle man to lock their returns at 2.5% if they dont know what to do with the money.
3. The employer discusses with the employee on what type of fund to contribute to. This can be a big plus as big companies can provide financial expertise to workers on how to maximse their returns.
Currently only 3.2% of the total CPF funds is invested in equities! 29% of CPF funds are either is ordinary accounts or special accounts earning guaranteed interest. With only 3.2% in equities, its hard to imagine how comfortable retirement would be possible. If financial planing responsibility is shared with the employer or even the CPF board, it would help to maximize the returns of CPF members.
here are some of the things it can be used for
1. Severe financial hardship
Contact your fund. If the rules allow early release of benefits, you must satisfy the trustee that you have been receiving a Commonwealth income support paymentfor a continuous period of 26 weeks and you cannot meet your reasonable and immediate family living expenses.
2.Compassionate grounds
Contact your fund. If the rules allow early release of benefits, the ‘compassionate grounds’ are set out in the law. The Australian Prudential Regulation Authority (APRA) must consider your application first, before your fund trustee can make a final decision. Compassionate grounds involve medical treatment for serious conditions that is not readily available through the public health system, transport for medical treatment, changes to a home or vehicle because of a severe disability, palliative care, funeral and burial expenses, or to prevent the forced sale of your home by your mortgagee.