The question (not the race) that stops the nation: will my superannuation stay the distance?

It’s that time of year again – the first Tuesday in November, when we run the Melbourne Cup! Once again, I have been tasked to find the followers of this blog the winner.

This year’s super racing theme is managing longevity risk.

Image by KPMG Illustrator Steve Keast
Image by KPMG Illustrator Steve Keast

Whilst the Melbourne Cup may be the race that stops the nation, the question that stops the nation is – will I have enough savings to be able to live comfortably in retirement? Or in racing parlance, when the field enters the long straight at Flemington for the final part of the race, will there be anything left in the tank?

The Australian breeders have concentrated on breeding for speed, developing many wonderful sprinters and middle distance horses.  A bit like our wonderful superannuation system, with our focus on the Super Guarantee and accumulation.

The Melbourne Cup, by contrast, has developed into a high class stayers handicap – where only those horses that can stay the distance and can deliver under pressure capable of hitting the line first.

It is interesting with so many international horses in this year’s field that the question has been raised about the appropriateness of caps.  So too this year in super – with much debate this year about both the type and quantum of caps – concessional, non-concessional and transfer balance caps.

In the past there were a number of barriers to international horses participating.  Now with the International Horse Centre at Werribee with quarantine and stabling, some of these have been removed.  So too with super, with the proposed tax changes in the retirement phase that will allow for the development of products within super – such as deferred lifetime annuities.

All that waits us now is a fast, clean run race (and hopefully no interference like that which marred last year’s race).

With these thoughts in mind, this year’s selections are all horses with a strong staying pedigree, in good recent form and sure to still be putting in at the business end of the race.

My Top 4 Selections:

Big Orange # 1

Hartnell  #6

Almandin #17

Oceanographer #20

Hope you have a super Melbourne Cup!




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