Superannuation Misconceptions

Superannuation harbours numerous misconceptions, ranging from the belief that it’s exclusively for older individuals to the notion that one has no control over it. To help you navigate through the misinformation, we’ve debunked some prevalent myths surrounding superannuation.

I don’t need to worry about super until I’m much older.

Thinking about retirement may seem distant when starting your career, but neglecting your super for too long can have financial consequences in the long run. Planning for retirement early increases the likelihood of achieving financial goals. Consider consolidating funds, minimizing fees, and making additional contributions to boost your balance. Consulting with a Financial Planner ensures the right strategy for your situation.

I can rely on my inheritance to cover my retirement; I don’t need to build my super.

While some individuals do inherit or unexpectedly come across enough wealth to fund their retirement, banking on such circumstances is a risky strategy. It’s essential to focus on the financial aspects within your control to secure a stable retirement. Seeking advice and devising a financial plan, regardless of age, is a proactive step towards a secure financial future.

Diversifying my super across multiple funds is beneficial, like not putting all my eggs in one basket.

Many people fall into the trap of maintaining multiple super funds, potentially impacting their final payout. Consolidating super is a critical step to maximize investments, reduce fees, gain control over insurance coverage, and streamline paperwork. While there may be concerns about losing insurance cover during consolidation, seeking advice from a qualified Financial Adviser is crucial before taking this step.

My super is locked up; I have no control over it.

Contrary to the belief that super is beyond one’s control, there are various ways to manage and optimize retirement savings. You can modify your super’s investment strategy and adjust contribution levels. Some individuals opt for a Self-Managed Super Fund (SMSF) for increased control, but this choice comes with added responsibilities as a trustee. Seeking advice is crucial before making such decisions.

For any inquiries about your superannuation or retirement plan, please don’t hesitate to contact us. We can connect you with one of our experienced financial advisers to address your concerns or review your retirement plans.