Retirement uncertainty.

Retirement should be a joyous time for most Australians. Gone are the days of having to frugally exist on the pension. A form of superannuation for all has been in place now for many years and on each pay day the employer is responsible for paying a wage percentage into a retirement account for each employee. As a result, everyone can expect to retire with a nest egg to supplement the pension.
That is the scenario that is supposed to happen. Reality is somewhat different.
We repeatedly hear of firms that close their doors and go into liquidation owing employees thousands in unpaid entitlements - including holiday pay, overtime,long service leave - and money that should have been paid into superannuation. Not meeting superannuation requirements is a criminal offence, but even if the employer faces gaol time it is little consolation to those who face their retirement years in penury.
From time to time politicians promise to tighten up the system, but then so many superannuation schemes revolve around the financing of the employer and to require that money be quarantined from working capital could send the company to the wall. As a result, promises of reform have been all talk and no action.
Now a new group of people have reason to face uncertainty. Public servants usually have the least to fear when it comes to their pension money. The government is rolling in money and as an employer their entitlements seem secure.
Unfortunately that is not so. The crunch will come about 2020 when the balance between years of underfunding and a surge of retirements will see no money in the national retirement account.
This hole has been plugged by what has been called " the Futures fund ". This is a fund where government assets - such as Telstra shares - have been parked against the day they may be liquidated to fund public service retirements.
Kevin Rudd has announced that he is prepared to raid that fund to bring high speed broadband access to the net to 98% of all Australians. He expects this broadband scheme to be profitable and hence the money used will be returned to the fund - but the IT world is one of uncertainty - and should this scheme fail because it is overtaken by newer developments then existing public servants could face the prospect of either a reduced pension or the need to remain in work well past their retirement age.
Many will shudder in horror at the prospect of politicians gambling with their retirement money in a field where angels fear to tread !