In Australia at least, there seems to be a way for people to successfully manage to save for their retirement years. The way that they are doing it is through self-managed superannuation funds or smsf for short. These are government supported funds which, can be effective but do have some very strict rules regarding their set up and use and, disregard to these rules can have some very potent side effects, none the less many people are complying to the rules of set up and as a result are reaping some good rewards.
These types of funds have been gradually growing in popularity since 2010 and with good reason as, between 2010 and 2014 these funds grew on average at a rate of 12.5% compared to an average of other funds only growing by only 9.65% so, if this trend of growth continues, and there seems to be no reason why it should not, the popularity of these funds should continue to grow.
One of the better points about one of these funds is that up to 4 members of one family can be in the same fund which obviously cuts down the costs of setting up and annual auditing plus, the fund members can be in control of the fund themselves, through a nominated trustee. One of the points that can be managed by the members is what they actually invest in and as to whether they wish to borrow in order to invest. It may seem strange that you should borrow money in order to invest but, members of these types of funds are permitted to borrow money provided it is for investing in properties and as property values often climb higher than other investments, a loan for this purpose can be very profitable.
Although these funds do cost money to set up and be audited annually, their costs are generally far lower than other funds and so also have an advantage over other funds that way. As mentioned, there are strict guidelines regarding the setting up and administering of these types of funds but most people have found it in their best interest to hire professional assistance in doing so. Once you have acquired a specialist firm to assist you in these fund matters, they can quickly and cheaply have the fun open and operating for you, all whilst complying with the sometimes maze like regulations. These professionals can also, if requested and paying of an annual fee, ensure all necessary paper work for auditing and tax purposes are correctly prepared and filed. Again on request, these professionals can assist throughout the year, not by influencing the trustee in any way but by at least ensuring that the investments which the members want to make, are in compliance with the regulations for such funds.
Once a member of one of these funds reaches the age of 55, they are permitted to take an income from the fund even if they are still working part time but of course, once they reach full retirement age, the fund can be used as a pension.