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Old 01-09-2019, 07:57 PM   #7
Gocka
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Join Date: Dec 2012
Location: Ohrid
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Does the employer contribute in Australia? Our 6.2% is the employee portion, the employer also pays 6.2% on your wages. Also its capped to the first roughly $120,000. Income over that is exempt from that tax.

One idiotic aspect of our system is that everyone receives a government pension regardless of income. So even the wealthiest people who have substantial income through retirement can collect a full government pension on top of it. Pretty much all Americans need it anyway because the cost of living is high and most people don't save a penny on their own.



Quote:
Originally Posted by Risto the Great View Post
Over here 9.5% is compulsorily deducted from your salary package. You won't normally be able to access it until you are at least 60 years old. It is taxed at 15% on the way in (usually) unless you are a high income earner.

People used to put their wealth into brick and mortar but that has become difficult for most because the spread between salaries and properties values has become so large.

I have a grandmother who along with her husband bough a small apartment building in Manhattan back in the early 70's for a mere $80,000. She recently sold it in very shabby condition for $5,000,000 a 60 fold increase. In the same time period the average salary has tripled maybe quadrupled. Funny side note, the same Grandmother, who hardly speaks two words of English and is illiterate, was pre-approved for an $80,000,000 bank loan to purchase another property.

Reverse mortgages are becoming popular for old folks with homes.

You are right, most people don't have any savings.

I have to make my money work for me, because god knows that I don't want to.

Quote:
Most people do not have savings. I would thought the entire western world is pretty much the same in this regard.

A common strategy here is to accumulate property with the taxation benefits of negative gearing. More of a bricks and mortar approach to accumulating wealth.
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