While the months began to count down, so too did the figures on their savings statements – as all Australians have experienced – thanks to the global financial crisis continuing to bite.
In late March, opposition financial services, superannuation and corporate law spokesman Chris Pearce called on the Labor government to turn its attention to how its bank guarantee is affecting Australians whose funds remain locked up in cash management trusts and mortgage trusts.
“Australians are facing a growing problem,” Pearce said.
“Super fund members, after years of effort and sacrifice, are having serious difficulty accessing their retirement nest egg.”
According to Pearce, the government has failed to articulate, as promised, an exit strategy or phase out plan that will provide relief to Australians frozen out of their own savings and funds.
“People need help. The government has shown they do not care for the more than 270,000 Australians that have had their funds frozen as a result of this botched, careless government policy. These Australians have been betrayed by the Rudd Labor government,” he said.
Less than two weeks after these remarks were made, Pearce again has drawn attention to the bank deposit guarantee, this time with post-retirees in mind.
Last week, he called on the government to recognise the price paid by Australia’s aged since the introduction of its bank deposit guarantee.
“Without access to savings they have worked tirelessly for, older Australians who cannot meet the costs of entering an aged care facility in full are forced to pay substantial government mandated bond interest charges,” he said.
While it may seem like Pearce is attempting to take a second bite out of the apple, he does have a point.
Politics aside, if you or your client is in a position where you cannot easily access money that you have worked your whole life for, there surely is an issue.
While the government’s bank guarantee was introduced with the best of intentions, the raft of redemption halts on funds that started from the market downturn has done little to lessen the headache for retirees.
Not only have they been lumped with having to deal with their dwindling super accounts, with many being forced to seriously think about returning to the work force, and others left with no choice but to re-enter the workforce, many are now unable to access much needed funds.
Is there a solution to this problem?
Or will it be an issue that goes round in circles?
