Despite the fact that we live in the information age, there seems to be an abundance of nonsense being circulated when it comes to Superannuation. The Greater’s Taree Branch Manager Jason Potter debunks some common myths for us.
Most of us don’t even know what Superannuation is until we start working, and even then it seems like a far-off, distant concept, as retirement may as well be a million years away.
But every day you work, you’re growing your super, so don’t you owe it to yourself to know as much about it as you can? That way you can enjoy peace of mind knowing that when the golden handshake does appear on the horizon, you’ll be sitting pretty.
Myth: By having my super with a number of different funds, I’ll leave myself open to earn more
So many people are guilty of this, and it has the potential to significantly affect their final payout. It’s quite common for us to have a number of different super fund set up based on the fact that most employers will have a chosen super fund that their employees contribute to.
Consolidating your super is crucial. If you’ve got super with multiple funds for any reason, it’s worth your while to choose one and lump all your balances together. You’ll be paying less fees, will have more control over your super, and less paperwork to deal with.
Myth: I don’t need to build my super – my inheritance will cover me.
Another common one, especially among those of us who maybe haven’t contributed enough to our super over the years as we could have. We may have some super, but aren’t confident enough it will last us through retirement, so we delegate responsibility and decide to rely on the fact that we may strike it lucky and get left a large amount in a family member’s will, or win the lotto.
While this may be a nice daydream, it’s hardly a strategy for our retirement, is it? Very few of us will be lucky enough to enjoy a healthy inheritance, and even fewer strike it rich by chance. What’s of more value is focusing on the things we have some control over, and making as strong a contribution to our super as we possibly can. It’s never too late to get advice, and start putting a plan in place for your financial future.
Myth: Why bother with Super now? I can’t access it until I retire?
When we’re young, the thought of contributing towards super is like the ultimate plan for a rainy day. Why plan for a rainy day when it’s sunny now?
But like with anything in life, getting prepared as soon as you can and being dedicated towards your goal is the key with superannuation. It’s the little things we can do now and every day that can make a monumental difference down the track.
Making sure you’re only contributing to one super fund and making extra repayments may seem like a headache at the time, but the pay-off can be the difference between the retirement of your dreams and a financial nightmare.
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