“I’m looking at this with considerable concern,” Mr O'[Flaherty] said. “With the super funds, everything is going down.”

“Self-funded retirees have been saving the government a tremendous amount of money by not claiming pensions,” Mr O’Flaherty said. “Now, because their superannuation will be affected, they will have to look at going for a government pension. The Government is obsessed with the wealthy self-funded retirees — they should look more favourably on them. They’re saving them a great deal.”

“They ask, `If we forgo during our working career, why do we have to forgo during our retirement?”‘ she said. “Concern over superannuation is exacerbating these fears and resentments.”

NO other group of people watched yesterday’s stock market turmoil and the decimation of the local superannuation funds with more interest and concern than self-funded retirees.

Superannuation statements are now being greeted with fear by the nation’s 1.5 million retirees who do not receive a government pension, according to theAssociation of Independent Retirees.

Retired engineer Coleman O’Flaherty, in his mid-70s, said he had been living on his savings and the proceeds from two super schemes since he retired at 60.

“I’m looking at this with considerable concern,” Mr O’Flaherty said. “With the super funds, everything is going down.”

Self-funded retirees are at pains to point out that the vast majority of them are not wealthy.

“Self-funded retirees have been saving the government a tremendous amount of money by not claiming pensions,” Mr O’Flaherty said. “Now, because their superannuation will be affected, they will have to look at going for a government pension. The Government is obsessed with the wealthy self-funded retirees — they should look more favourably on them. They’re saving them a great deal.”

The association’s president, Theresa Kot, said many people were receiving their super statements and “reacting with fear and shock”.

“Many people were encouraged to take up superannuation rather than other investment options by the Howard government,” Ms Kot said. “Up to $1million was allowed to be put into super with special tax concessions. Today, those people are not happy. They have no opportunity to go out and replenish that money through employment or business, so they are responding with fear.”

She said many might not be able to wait until the market recovered, and would be forced to go to Centrelink to apply for a part-pension.

“While you planned for your retirement, you used financial advisers; you are now in the situation where the marketplace has brought you to the point where you are going to Centrelink,” she said.

Ms Kot said her members wanted the Rudd Government to recognise their plight and take action. Many were concerned the Government was contemplating removing their commonwealth Seniors Card, the only taxpayer-funded benefit they received.

She said there was considerable resentment that despite their hard work and diligence in saving for their retirement, they did not qualify for reduced council rates, water rates, car registration and fishing licences.

“They ask, `If we forgo during our working career, why do we have to forgo during our retirement?”‘ she said. “Concern over superannuation is exacerbating these fears and resentments.”

Credit: John Stapleton