It is true that the concept of superannuation can be a complicated one. And perhaps this is why so many super myths are circulating. But ironically, these simple-sounding bits of so-called superannuation advice can actually be hazardous to your financial health.
You Don’t Need To Think About Your Super until you’re Older
Many believe that because they can’t access their super until they retire, there’s no reason to think about it until then. But a lost super could be the result if you believe in this myth. There are many things you can do with your super now that can benefit you greatly when you’re ready to retire. As well, it’s important to keep in mind that the earlier you start preparing and the longer you remain devoted to growing your super, the better off your retirement will be. Some tactic for growing your super include consolidating to eliminate unnecessary fees, and contributing more than your employer, even if it’s only a few dollars more.
Diversification with Different Funds Is Better Than Having One Fund
While you may think that spreading your super over more than one fund will yield you a higher amount of money when you’re ready to retire, experts warn that the opposite could be the case. The more super funds you have, the more super fees you will have. And these can eat away at your savings, leaving you with a very unwelcome surprise by retirement time. Some of the best superannuation advice suggests consolidating your super to ensure you’re only paying what you need to in fees.
You Are Relying On a Lucky Lottery Ticket or Inheritance to Fund Your Retirement
If your retirement strategy involves a surprise lottery win or large inheritance from a long-lost aunt, then you have put your faith into one of the biggest super myths going. The only lost superannuation is the one you don’t contribute to early. And when you think about it, there’s no harm in contributing to your super while you wait for your financial ship to come in. The most important thing to do is to be realistic – the odds of surprise money coming in are slim.
Forgetting Your Funds Means you’ve Lost Superannuation Forever
According to estimates by the Australian Taxation Office, there is more than $17 billion dollars in unclaimed and/or lost superannuation floating around. Many think that if they’ve forgotten which funds they’re with means that they’ve lost their funds for good. But this couldn’t be further from the truth; there are actually a few ways that you can reclaim lost superannuation. The ATO offers a free super tracking service, and the provider of your fund can give you superannuation advice about how to find your money.
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