Politics is a dirty word

There have been no real surprises uncovered by the Royal Commission into the banking and superannuation industries. It has been known for years that financial advisers provide advice that benefits the adviser rather than the client. Federal Governments allowed this to happen by failing to to ensure that the financial regulator, ASIC had a proper oversight of the industry. The regulator has a cosy relationship with the industry and successive governments endorsed it.Bank executives and board members should be made accountable - as should bureaucrats and politicians who sat on their hands while all this was going on in plain sight.

The Royal Commission enquiring into the actions of banks, the financial services sector and superannuation funds is now underway and may help to solve some problems.Compulsory Superannuation has been a crock for baby-boomers. It's OK for the high flying GenYers and subsequent generations with its generous tax breaks. But for those about to retire it has been useless. After a lifetime working and paying taxes those around 65 and 70 get little except the prudent savings accumulated over the years. One 70 year old recently cashed- out his super – the princely sum of $18,500. For most of the working life of people that age, superannuation contributions from employers were not available. Following the introduction of compulsory super, many only had limited part time employment and may have been largely self-employed - taking meager living expenses out of business income. With a low level of disposable income, there was no opportunity to take advantage of tax breaks and shovel thousands ...